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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
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Debt and return pursuit: PAYE: e-payment surcharge: charge inhibition indicator

UP/OP charge inhibit indicator and its impact on the surcharge calculation

There are number of signals that can be set on EBS against a year, 6 of these have an impact on the UP/OP charge inhibit indicator signal. The UP/OP charge inhibit indicator signal will be set against a record where any combination of these 6 signals are set when the P35 data is processed.

BROCS displays the ‘CHARGE INHIBIT IND’ status on:

  • VIEW TAXPAYER, format 9 DESIGNATORY DATA (VTP - DG) and
  • VIEW TAXPAYER, format 4 POSTING DETAILS, against the 228 charge posting [VTP, ASN (= Deduction Year), month specified i.e. ‘13’ and appropriate posting number specified e.g. ‘PD*001’].

Where BROCS identifies that a surcharge is appropriate (i.e. the default count in the current surcharge period is >2 and there is a 228 charge) and one of these signals is set then BROCS will not calculate the surcharge. Instead BROCS will put the case details on the ‘Listing for DMEU of cases where a surcharge is appropriate but it has yet to be raised’ for the DMEU to investigate.

The six signals are:

Manual setting of UP OP Inhibition This is set as an EBS operator judgement call e.g. a PSC scheme where the P35 data is held, but the CIS36 is still outstanding
   
Part Scheme Set automatically when EBS recognises that more than one return type is expected (CIS36 & P35 / P35MT & P35).
P227 Set clerically by Customer Operations Employer Unit on EBS upon instructions from a Debt Technical Office where a Regulation 72(3) [formerly Regulation 42(2)] discrepancy case is resolved by recovering the under-deduction from the employer.
RECONSTRUCT This is set clerically on EBS when a return has been created from incomplete or missing records.
COLSTOP Set clerically by the Customer Operations Employer Unit on EBS upon instructions from a Debt Technical Office to prevent the issue of any correspondence about any U/P or O/P.
Funding Discrepancy This is set automatically by EBS when the NTC funding amount and P35 captured funding amount are compared and a discrepancy outside the parameter is identified. This parameter is set at £10.00 (+ or -)

There can be more than a single signal present and the various permutations of the presence of these signal(s) sets a ‘Charge Inhibit Indicator value’ in the range from ‘1’ to ‘33’. When all these signals are no longer present then the ‘Charge Inhibit Indicator value’ is set to ‘0’. Where the ‘Charge Inhibit Indicator value’ is set to either ‘0’ or ‘24’ (only the Funding Discrepancy signal is set) then BROCS will automatically calculate the Surcharge and issue the Surcharge Notice.

On receipt of the list the DMEU should investigate the ‘Charge Inhibit Indicator value’ cases with the appropriate Customer Operations Employer unit. The table below provides guidance on the action to take given the various circumstances.

Charge

Inhibit

Ind

Value Part
scheme P227 Reconstruct COLSTOP Funding
discrepancy Action            
               
  1 Y N N N Not set B/F for receipt of full scheme
               
  2 N Y N N Not set Raise clerical surcharge
  3 Y Y N N Not set B/F for receipt of full scheme
  4 N N Y N Not set Raise clerical surcharge
  5 Y N Y N Not set B/F for receipt of full scheme
  6 N Y Y N Not set Raise clerical surcharge
  7 Y Y Y N Not set BF for receipt of full scheme
  8 N N N N Not set Refer to local services for reason signal set
  9 Y Y Y Y Not set B/F for receipt of full scheme
Refer to local DTO for advice              
  10 Y Y N Y Not set B/F for receipt of full scheme
Refer to local DTO for advice              
  11 Y N Y Y Not set B/F for receipt of full scheme
Refer to local DTO for advice              
  12 Y N N Y Not set B/F for receipt of full scheme
Refer to local DTO for advice              
  13 N Y Y Y Not set Refer to local DTO for advice
  14 N Y N Y Not set Refer to local DTO for reason
  15 N N Y Y Not set Refer to local DTO for advice
  16 N N N Y Not set Refer to local DTO for advice
  17 Y Y Y N Set B/F for receipt of full scheme
  18 Y Y N N Set B/F for receipt of full scheme
  19 Y N Y N Set B/F for receipt of full scheme
  20 Y N N N Set B/F for receipt of full scheme
  21 N Y Y N Set Raise clerical surcharge
  22 N Y N N Set Raise clerical surcharge
  23 N N Y N Set Raise clerical surcharge
  25 Y Y Y Y Set B/F for receipt of full scheme
Refer to local DTO for reason              
  26 Y Y N Y Set B/F for receipt of full scheme
Refer to local DTO for reason              
  27 Y N Y Y Set B/F for receipt of full scheme
Refer to local DTO office for reason              
  28 Y N N Y Set B/F for receipt of full scheme
Refer to local DTO for reason              
  29 N Y Y Y Set Refer to local DTO for reason
  30 N Y N Y Set Refer to local DTO for reason
  31 N N Y Y Set Refer to local DTO for reason
  32 N N N Y Set Refer to local DTO for reason
  33 N N N N Set Refer to local services for reason

If there is likely to be a protracted delay in the removing of the above signals (with the exception of the Funding Discrepancy signal) preventing the ‘Charge Inhibit Indicator value’ from amending to ‘0’ or ‘24’ and consequently delaying the surcharge calculation then the DMEU should consider:

  • setting the ‘Clerical Surcharge’ signal and
  • raising the Surcharge clerically using format 2 of BROCS function ASA.