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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: end of year: returns: BROCS automatic process

BROCS PAYE return reminders

From 2013-14, no further BROCS PAYE return reminders will be issued.

Up to and including account year 2012-13, BROCS made the initial decision on whether an outstanding return was suitable for a return reminder and sent these to employers who had not yet submitted their P35. If P14s only had been received, a reminder was still issued as the return was incomplete. Returns not suitable for a reminder are sent straight to IDMS.

A business decision was made each year on when to issue reminders. If an employer has registered for online filing, reminders were issued online via the PAYE Online Service; otherwise, they were issued on paper. The PAYE Online Service is available to customers from HMRC’s website. Employers who have registered for online services can view their notices and reminders by selecting option ‘Employer notices’. If they have provided an email address to the PAYE Online service, they will be sent an e-mail alert prompting them to access the service each time a PAYE notice or reminder is issued.

Below are details of the reminders BROCS issued for PAYE returns. For CIS reminders, see DMBM524000.

AR1N

This was a pre-due date reminder, issued to all employers. For 2011-12 and 2012-13, there was no contact address and phone number on the reminder.

AR2N

This reminder was issued to all employers whose return did not show on BROCS as having been received, and who had no in-year months outstanding for the year of the return. The owning Debt Management TO was the contact shown but the AR2 has not been issued since 2007.

AR2MN

This reminder was issued to all employers whose return did not show on BROCS as having been received, and who had in-year months outstanding for the year of the return. The owning Debt Management TO is the contact shown but the AR2MN has not been issued since 2007.

AR6

This reminder was selected for issue by a BROCS user (see DMBM522160) and has the effect of closing the respective open IDMS return work item. The owning Debt Management TO was the contact shown.

All reminders BROCS issues are shown in BROCS action history.

When BROCS refers PAYE return pursuit to IDMS

BROCS will refer cases for PAYE return pursuit to IDMS after the final return reminder, or when a business decision is made to move these cases direct to IDMS.

Returns not suitable for a reminder will be sent by BROCS straight to IDMS. The table below gives examples of these types of cases.

Referred to IDMS Reason
   
19 May RLS
Immediately scheme set up on BROCS New employer’s record set up after 19 May for a closed year
Immediately cessation signal set on BROCS Cessation case
90 days after issue of P35 (EP) Electoral payment schemes
18 June Simplified deduction scheme, examiner’s fees scheme, taxed award scheme, DP/DC NI only scheme, insolvency cases, Welsh language cases, PRFI and deceased cases, Payment card reward schemes, Norwegian Protocol schemes and ERA schemes.

BROCS interaction with CIS - 2007-08 onwards

BROCS does not hold information on individual monthly CIS returns received or outstanding. Instead at the end of each tax year, on a date agreed by the business, CIS will total the value of all monthly returns received and processed and send the resulting figure to BROCS to record as a charge. This will also show whether all expected monthly CIS returns have been received. BROCS reminders will not include any outstanding CIS returns. For CIS reminders, see DMBM524000.

 

BROCS actions when full or part PAYE or CIS returns received

If all expected returns have been received and processed, BROCS will either create an underpayment, overpayment or balance the scheme. Any open return work item in IDMS will be closed and any respective CIS return work item will be closed by CIS.

If part returns are received, the actions BROCS take depend on the scheme type and what part has been received and processed, as noted below.

Scheme type ‘P - PAYE only’

Where:

  • only the P35 or P35 and some P14s are received and the scheme is:
    • underpaid, BROCS will issue underpayment reminders
    • overpaid, BROCS will sent the overpayment straight to IDMS
    • balanced, BROCS will send the return work item (for P14s) straight to IDMS
  • only P14s have been received, normal BROCS return processes will apply as the P35 is still outstanding.

If P14s are outstanding, any IDMS work item will have an information code of ‘P14 O/S’.

Scheme type ‘PSC - PAYE & Contractor’

Where:

  • only the P35, P35 and some P14s or P35 and all P14s have been received and the scheme is:
    • underpaid, BROCS will issue underpayment reminders
    • overpaid, BROCS will hold the overpayment pending CIS return processing
    • balanced, BROCS will take no action until the CIS return is processed
  • only CIS returns have been received and the scheme is:
    • underpaid, BROCS will issue underpayment reminders
    • overpaid, BROCS will hold the overpayment pending the start of the P35 return pursuit campaign
    • balanced, BROCS will take no action until the start of the P35 return pursuit campaign
  • some monthly CIS returns have been received and the scheme is:
    • underpaid, BROCS will issue underpayment reminders
    • overpaid, BROCS will hold the overpayment pending the start of the P35 return pursuit campaign
    • balanced, BROCS will take no action until the start of the P35 return pursuit campaign
  • some monthly CIS returns and full P35/P14s have been received and the scheme is:
    • underpaid, BROCS will issue underpayment reminders
    • overpaid, BROCS will hold the overpayment until full CIS returns are processed or the case moved to IDMS at a date to be agreed
    • balanced, BROCS will take no action until full CIS returns are processed
  • all monthly CIS returns but only the P35 or P35 and some P14s have been received and the scheme is:
    • underpaid, BROCS will issue underpayment reminders
    • overpaid, BROCS will send the overpayment straight to IDMS
    • balanced, BROCS will send the return work item straight to IDMS
  • some monthly CIS returns and only the P35 or P35 and some P14s have been received and the scheme is:
    • underpaid, BROCS will issue underpayment reminders
    • overpaid, BROCS will hold the overpayment until full CIS returns are processed or the case moved to IDMS at a date to be agreed
    • balanced, text to be added later.

If P14s outstanding, any IDMS work item will have an information code of ‘P14 O/S’.

Scheme type ‘XP - Contractor only’

Where some monthly CIS returns have been received and the scheme is:

  • underpaid, BROCS will issue underpayment reminders
  • overpaid, BROCS will hold the overpayment until full CIS returns are processed or the case moved to IDMS at a date to be agreed
  • balanced, BROCS will take no action until further CIS returns are received.