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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
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Employer returns: view / maintain BROCS: BROCS and employer discounts

This subject is presented as follows

 

Background

From April 2001 an employer will receive a discount of £50 if they have

  • Filed the annual return online by 19 May 2001

And

  • Settled liability in full by 19 April 2001 with at least one electronic payment 

Additionally, if the annual return includes tax credits paid, an additional £50 discount will be posted against that BROCS record. The subject ‘PAYE online for employers - internet’ at PAYE44030 provides further information.

Viewing discounts

On receipt of a P228 charge containing the e-filed signal (indicator), BROCS will

  • Check to establish whether the criteria has been met

And where it has

  • Post the discount(s) against the relevant sub-account

Where BROCS has received an e-filed annual return the descriptor ‘INTERNET FILED RETURN’ will be displayed in Function VIEW BROCS Format 4 for the appropriate P228 posting.

Where the e-filed discount has been allocated to the BROCS record this will be displayed in Function VIEW BROCS Format 3 against tax on the relevant year’s sub account displayed with the posting type ‘EFD’.

Note: Where the employer has a scheme type NI the credit is allocated against the NIC charge.

Tax credit discount

Where the employer is eligible for the e-filed discount and the annual return indicates tax credits paid, a further £50 discount is posted against tax with a posting type of ‘TCD’. This can be viewed by using Function VIEW BROCS Format 3. Where the employer has a scheme type NI the credit is allocated against the NIC charge.

Payment reconciliation

Following the posting of the discount(s) credits the overall position for the year is reconciled. If an overpayment arises this will follow the normal rules for overpayments with the exception that the reallocation of discounts is not allowed to the following year. If the payment is such that to make a reallocation to the next year would include the discount postings, then the discounted posting element must be classed as a notional overpayment. The subject ‘Notional overpayments’ at PAYE47055 gives further details.