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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: PAYE: End of Year: underpayments, surcharge and interest: interest


Interest is automatically calculated and charged by BROCS on payments received late for the closed deduction year - that is any electronic payment received after 22 April or any other payment received after 19 April. Once a charge is raised demand notes will be issued in accordance with the underpayment demand cycle, see DMBM522260.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) There is no interest charged on late in-year payments. Interest is shown on BROCS on View Taxpayer Data F2 under the “INTEREST” column.

Accruing interest

Most underpayment reminders from BROCS and IDMS will show interest accrued to date; this is where the underpayment has not yet been paid but interest is calculated from the due date to the date of reminder to give an indication of the interest accrued so far. Once the underpayment has been paid, an interest charge will be raised if necessary.

Reminders will not include interest if

  • BROCS Clerical Interest signal has been set to `Y’
  • employer is not liable to interest or
  • amount of interest due £1 or less.