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HMRC internal manual

PAYE Manual

Employer returns: employer return - overpayments: overpayments and repayment supplement

From 1992-93 repayment supplement (Repayment Interest (RPI)) is due on the repayment of PAYE, National Insurance and Subcontractor deductions.

RPI is calculated at the appropriate rate and will be due as follows

  • 1992-93 to 1995-96 inclusive

    • The 6 April twelve months following the year in which payment was made
  • 1996-97 onwards

    • The 19 April immediately following the year in which payment was made, or the effective date of payment whichever is the later, to the date the payment is disposed of

Who will calculate RPI?

Banking Operations are responsible for calculating RPI. From 6 April 1997 this has been automatically calculated by BROCS upon instructions to make a repayment.

Note: BROCS will only calculate RPI automatically if the RPICAL is set in BROCS Format 9. When NORPICAL signal is set the repayment should be made using form P565. See PAYE47045.

RPI can be viewed on the BROCS record using Function VIEW BROCS in Format 3. ‘Types of posting on BROCS’ at PAYE48135 gives further details.

Calculation of repayment supplement in error

There may be situations when a payment is allocated to an earlier year in error. Where this is discovered and the payment should be allocated to the current year you must use form P565 to advise Banking Operations

  • To allocate the payment to the current year


  • Not to calculate repayment supplement

Failure to reallocate the payment in this way may lead to repayment supplement being calculated in error. For more information see ’Form P565’ at PAYE47045.

CIS deductions suffered

Where an employer requests that an amount of CIS deductions suffered is repaid or set-off against other PAYE liabilities, from 6 April 2007 RPI is now applicable to any repayment or set-off.

Repayment Supplement Queries

In the first instance any queries regarding interest supplement should be investigated by the Processing Office who should review the BROCS record accordingly. Where exceptionally the query cannot be resolved locally, you should refer the case to the relevant Banking Operations office for guidance.