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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: End of year: Underpayments, surcharge and interest: Underpayments

Underpayments are created when charges are recorded on BROCS showing deductions from employees, directors or subcontractors but insufficient payments have been made to HMRC by the employer or contractor.

When the end of year return charges are posted, BROCS will adjust the payment allocations to agree the tax and NIC totals. Any underpayment letter will show the tax and NIC Class 1 as a single figure.

There are two types of charge.


These are as a result of processing employer annual returns onto EBS and BROCS. See DMBM522140.


On a date agreed by the business (typically in May), the CIS system will total all CIS monthly returns received and processed for the closed deduction year for a Contractor and send the resulting ‘charge’ figure to BROCS. Additional charges will be received from CIS on a daily basis if further CIS returns are received.

CIS charges will show on BROCS VIEW TAXPAYER DATA F3 as

  • Full if all expected monthly Returns have been recorded on CIS, or
  • Provisional if some or no monthly CIS Returns have been received and one or more expected Returns are still outstanding.

Underpayments are shown on BROCS VIEW TAXPAYER DATA F2 in the ‘COLL’ (Collectible) column. Overpayments are also shown in this column but have an ‘M’ after the amount.

See DMBM522260 for details of BROCS reminders issued.