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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Debt and return pursuit: PAYE: e-payment surcharge: issue of surcharge notice

Surcharge - charge raised and notice issued automatically

When BROCS receives the processed P35 228 posting it will check to see if an automatic surcharge and resulting notice is appropriate. For the majority of large employers (Segmentation Band 1), BROCS automatically

  • calculates the surcharge and
  • issues the surcharge notice.

As a result

  • the surcharge posting ‘SUR’ is viewable on BROCS VIEW TAXPAYER DATA POSTING SUMMARY, format 3 [VTP, PS, ASN (= deduction year)] and
  • the issue of the surcharge notice is automatically recorded as a BROCS VIEW TAXPAYER DATA ACTION HISTORY format 5 [VTP, A, ASN (= deduction year)] - ‘SURLTTR’.

The SUR has a posting date set to the date that the Surcharge Notice was issued and has an EDP of 30 days after the posting date to allow for the appeal period.

Surcharge - charge raised and notice issued manually

Where the surcharge cannot be calculated automatically, BROCS will list the case with the reason why the surcharge was not calculated automatically.

The list will be issued to the DMEU on a daily basis and headed ‘Finalise Deferred Output’.

Paylips

The Surcharge Notice contains a payslip and consequently there are Shipley and Cumbernauld versions depending on which BROCS database the employer is associated with.

Surcharge notice amendments

The surcharge will be amended and an Amended Surcharge Notice issued automatically by BROCS where either of the following is amended for a deduction year

  • the number of defaults or
  • the charge posting as a result of an additional P35 being processed or the original P35 being amended.

The Amended Surcharge Notice also contains a payslip and so there are Shipley and Cumbernauld versions depending on which BROCS database the employer is associated with.

Appeal period

Once a surcharge notice has been issued the appeal cycle begins with the employer having 30 days in which to appeal.