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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Employer returns: view / maintain BROCS: cessation or cancellation rejected by banking operations (Action Guide)

To deal with a case where Banking Operations have rejected your action to cease or cancel an employer record follow steps 1 - 26 below. The Guide is presented as follows.

Note: The instructions in this guide can be adapted for use prior to ceasing or cancelling an employer record when payments are shown on BROCS.

  Steps 1 - 4
   
  Steps 5 - 10
  Steps 11 - 26

For details of how to access any of the Employer Business Service functions, use PAYE057.

Initial review

When Banking Operations inform you that they have rejected your request to cease, cancel or cancel one year only you must take urgent and corrective action to

  • Reallocate any payment incorrectly held on BROCS
     Or where the payment is correct
  • Amend the employer record to remove the original request to cease or cancel
  1. Use Function VIEW EMPLOYER NOTES and check the employer record pad to review the information recorded.

  2. Compare the information recorded on both computers

  • Use Function EMPLOYER SCHEME HISTORY to check the status of the employer record
  • Use Function VIEW BROCS (Format 3) to check the details of the payment(s) held on the BROCS record
  1. Consider whether the payment is allocated correctly on BROCS.

  2. Ask the employer / contractor or their agent for any further information you need.

The action you take next is based on the original action and whether the payment was correctly allocated.

Correct payment on BROCS

Follow the advice under the heading relating to the action taken

Cancelled one year only (COYO)

  1. Use Function AMEND EMPLOYER INDICATORS or CANCEL SCHEMES ONE YEAR ONLY to remove the COYO indicator and reopen the year. Further information is available in subject ‘Re-opening years cancelled one year only’ at PAYE21210

  2. Use Function AMEND EMPLOYER INDICATORS to set the indicator INSTIND(1) if the original request to COYO came from the Debt Management Office or Banking Operations.

Employer record cancelled

  1. Use Function AMEND EMPLOYER SCHEME HISTORY to enter a reopened date on the employer record. Follow the instructions given in ‘Re-opening an employer record (Action Guide)’ at PAYE21206

  2. Use Function AMEND EMPLOYER INDICATORS to set the indicator INSTIND(1) if the original request to cancel the employer record came from the Debt Management Office or Banking Operations.

Employer record ceased

  1. Use Function AMEND EMPLOYER SCHEME HISTORY to enter a restart date on the employer record. Follow the instructions given in ‘Re-starting an employer record (Action Guide)’ at PAYE21216

  2. Use Function AMEND EMPLOYER INDICATORS to set the Indicator INSTIND(1) if the original request to cease the employer record came from the Debt Management Office or Banking Operations.

Payment on BROCS in error

Where you discover that a payment is held on a BROCS record in error follow the advice under the heading relating to the action taken

Cancelled one year only

  1. Use Function OVERPAYMENT DISPOSAL or form P565 to inform Banking Operations how to dispose of the payment. ‘Overpayment notification (Action Guide)’ at PAYE47061 gives further instructions.

  2. Use Function VIEW BROCS (Formats 3 and 4) to monitor the BROCS record to check that the payment has been removed.
    When the payment posting has been removed

  3. Use Function AMEND EMPLOYER INDICATORS or CANCEL SCHEMES ONE YEAR ONLY to remove the COYO indicator and reopen the record for the year. Further information is given in subject ‘Re-opening years cancelled one year only’ at PAYE21210

  4. Use Function AMEND EMPLOYER SUMMARY to set the RLS indicators against all addresses on the employer record to ensure no correspondence is sent to the employer.

  5. Use Function VIEW BROCS (Format 9) and COP Function ED to monitor the respective employer records to establish when these records have been updated.

  6. When this information has successfully updated BROCS and the NPS employer record

  • Use Function AMEND EMPLOYER INDICATORS
     Or
  • Use Function CANCEL SCHEMES ONE YEAR ONLY to COYO the year. Further information is available in subject ‘Cancelled one year only’ at PAYE21020

And

  • Use Function AMEND EMPLOYER SUMMARY to remove any RLS indicators set to prevent the issue of any output

Employer Record Cancelled

  1. Use Function OVERPAYMENT DISPOSAL or form P565 to inform Banking Operations how to dispose of the payment. ‘Overpayment notification (Action Guide)’ at PAYE47061 gives further instructions.

Note: It is important to ensure the 3 computer systems (EBS, NPS and BROCS) are in line and hold identical information. Wherever possible you must avoid computer mismatches. The following steps give details of actions to be taken.

  1. Use Function VIEW BROCS (Formats 3 and 4) to check that the payment posting has been removed.
    When this information has successfully updated BROCS (the payment posting has been removed).

  2. Use Function AMEND EMPLOYER SCHEME HISTORY to enter a reopened date on the employer record. Follow the instructions given in ‘Re-opening an employer record (Action Guide)’ at PAYE21206

20.Use Function VIEW BROCS (Format 9) and COP Function ED to check that the respective records have been successfully updated.
When all systems (BROCS, NPS and EBS) are in line.

  1. Use Function AMEND EMPLOYER SCHEME HISTORY to cancel the employer record again. Follow EO SPD 21

Employer Record ceased

  1. Use Function OVERPAYMENT DISPOSAL or form P565 to inform Banking Operations how to dispose of the payment. ‘Overpayment notification (Action Guide)’ at PAYE47061 gives further instructions.

Note: It is important to ensure the 3 computer systems (EBS, NPS and BROCS) are in line and hold identical information. Wherever possible you must avoid computer mismatches. The following steps give details of actions to be taken.

  1. Use Function VIEW BROCS (Formats 3 and 4) to check that the payment has been removed.
    When this information has successfully updated BROCS (the posting has been removed).

  2. Use Function AMEND EMPLOYER SCHEME HISTORY to enter a reopened date on the employer record. Follow the instructions given in ‘Re-starting an employer record (Action Guide)’ at PAYE21216

  3. Use Function VIEW BROCS (Format 9) and COP Function ED to check that the respective employer records have been updated successfully.
    When all systems (BROCS, NPS and EBS) are in line.

  4. Use Function AMEND EMPLOYER SCHEME HISTORY to cease the employer record again. Follow the instructions given in EO SPD 1 and / or EO SPD 2.