PAYE47100 - Employer returns: employer return - overpayments: PAYE advance (PAD) payments

When a provisional employer repayment is appropriate, the relevant Employer Unit will complete a form P565 and send it to Banking Operations to issue the repayment.

Where insufficient payments are held on the employer’s BROCS record for the repayment year, Banking Operations will issue a PAYE advance (PAD) to repay the employer.

A PAD can only be made from current year (CY) and is cleared when Banking Operations reallocate payments against it from the previous year (CY-1), usually when the CY-1 return is processed and an overpayment is generated.

To avoid duplicate repayments being made to employers, you must use Function VIEW BROCS to ensure that any PAD shown on the employer’s BROCS record has been settled prior to considering a repayment.

The following examples show how a PAD may be dealt with and how it will be shown on the BROCS record

Where no payments have been received for year of the provisional repayment 

Year	What is shown in BROCS
Year CY-1	P565 Provisional Repayment request £500 sent to Banking Operations
Year CY-1	BROCS Format 3 Postings Summary - no payments received
Year CY	Banking Operations issue PAD £500. BROCS Format 3 shows posting ‘PAD £500.00 M’
Year CY-1	P35 subsequently processed - overpayment £500
Year CY-1	Banking Operations reallocate £500 to CY to clear the PAD. BROCS Format 3 shows posting ‘REA £500.00 M’
Year CY	BROCS Format 3 shows posting ‘REA £500.00’

Where some payments have been received for year of provisional repayment but not sufficient to cover the entire amount required 

 

Year	What is shown in BROCS
Year CY-1	P565 Provisional Repayment request £500 sent to Banking Operations
Year CY-1	BROCS Format 3 Postings Summary - £200.00 payment received. Banking Operations put £200 to Overpayments to repay. BROCS Format 3 Postings Summary - ‘D/O £200.00 M’ (amount put to overpayments)
Year CY	Banking Operations issue PAD £300 (balance of provisional repayment). BROCS Format 3 shows posting ‘PAD £300.00 M’
	Employer receives one repayment cheque totalling £500
Year CY-1	P35 subsequently processed - overpayment £300
Year CY-1	Banking Operations reallocate £300 to CY to clear the PAD. BROCS Format 3 shows posting ‘REA £300.00 M’
Year CY	BROCS Format 3 shows posting ‘REA £500.00’