Employer returns: enterprise tax management platform (ETMP): unallocated payments work list
ETMP refers to an overpayment as an unallocated payment. The ETMP Unallocated Payments work list is a report of all payments or credits across all ETMP customer accounts that have not been utilised at the point at which the work list is run.
The remainder of this subject is presented as follows
Accessing the work list
The work list is accessible using the ETMP Payment Processor role.
Creation of work items
The work list will only identify those accounts that have a credit balance. This will either be
- Where the payment / credit allocated to a charge exceeds the amount due
- Where the payment / credit is received in advance of a charge being created
A work item will be created in real time if payments become unallocated during the online day or overnight as new payments / credits are received into the system. Once a work item appears on the work list it will remain there until the automatic ETMP overnight clearing rules allocate it to a charge or you take action to clear the work item.
Filtering the work list
The work list can be filtered to report PAYE-only cases as well as a number of other different ways.
Note: Where an employer makes a payment in advance of a charge being created and specifies the year and month the payment relates to the payment will be held in anticipation of that months charge. The automatic overnight clearing rules will not attempt to use that credit against any other charge. If the due date for payment for that month expires and no charge has been received then the payment will be made available for the automatic overnight clearing rules to allocate to other outstanding charges.
Payment / clearing locks
Where you are working an entry on the unallocated payment work list and are unable to resolve it during that working day, you can apply a payment / clearing lock. This prevents the automatic overnight clearing rules reallocating the payment / credit to a charge. A new role available through SRS called ‘Manage Charge’ will allow you to set a lock.
Note: Locking a case does not prevent someone else unlocking it. You should therefore update the locking note field with a suitable work list note. The note field will allow a maximum of 49 characters.
There are some automatic locks set by ETMP
- All payments in respect of PAYE / NIC identified for a specific year and month and received in advance of an FPS charge being created will have a payment lock applied. The receipt of the charge from RTI core or the creation of a specified charge will automatically unset the lock
- PSC and XP schemes will have different payment allocation rules applied to identify and lock any excess payments following receipt of an RTI charge that may be on account of CIS returns that have a different due date
Note: PSC schemes that joined RTI in 2012-13 may have a manual clearing lock set in anticipation that an overpaid amount is a payment in respect of the CIS return.
- Class 1A NIC where ETMP recognises the employer is reporting Class 1A and the payment has the correct identifier. In these cases ETMP will automatically unlock the payment on receipt of notification of the Class 1A charge. If no charge is received the payment remains locked indefinitely or until it is unlocked manually
Note: Class 1A NIC is the only clearing lock that can automatically unlock.
- CIS deductions suffered where there is any credit on account after the end of the year and there have been CIS Deductions Suffered reported on an EPS at any point within the relevant year
- A repayment awaiting authorisation
- Where a repayment has been returned to HMRC
To help manage the Unallocated Payments work list there is an overpayments counter. This runs daily after the overnight clearing rules reallocate payments / credits to charges. The counter indicates how many consecutive times the account has been in credit and increases when a payment / credit has been set off against a charge from the previous day and a credit balance remains.
If the overpayment count reaches three, or multiples of three and the credit on the account is more than 50 per cent of the previous months charge, a letter will automatically be generated to tell the customer to review their returns and payment position. The counter will only reset to 0 (zero) when the balance on the customers account is either 0.00 or less than 0.00 (for example, underpaid).
The Unallocated Payments work list displays individual payments / credits not a summary amount of a total overpaid.
Note: Where there is more than one payment / credit still on the same Unallocated Payments work list following the overnight clearing process, you will see the same overpayment count number on each item.
Work list actions
You will be able to perform the following actions on the Unallocated Payments work list
- Transfer to Permanent Overpayments (POP)
- Repay to employer
- Transfer to existing head of duty
- Enter a resubmission date
- Transfer to another employer account in ETMP
Transfer to Permanent Overpayments (POP)
You will be able to transfer monies to POP for small overpayments totalling £10 or less or larger amounts where the employer has been unable to supply a satisfactory explanation for an overpayments. Any monies that are sent to POP will remain on the customers account and be displayed as an adjustment.
Note: Where an employer has access to the Business Tax Dashboard to view their liabilities and payments they will also see any amount sent to POP as an adjustment.
Repay to employer
From July 2013 new functionality was introduced in ETMP to make repayments to employers, see PAYE48230. You will now no longer use a P565 to instruct DMB to make a repayment on your behalf. There is one exception to this. When using the new repayment functionality and you have chosen the Payable Order repayment method you will receive an advisory message if any line of the customers name and address exceeds 28 characters. If this happens you must exit the function and use a P565 to make the repayment via OAS.
When you need to complete a P565
- Set a clearing lock against the credit to prevent the ETMP overnight clearing rules from allocating the payment / credit to another charge
- Create the note ‘Passed to DMB for repayment’ against the payment / credit on the Unallocated work list
- Use the existing process of completing a form P565 and pass it to DMB Banking. The P565 should be marked prominently ‘ETMP repayment request long name and address’
On receipt of the P565 DMB Banking will move the payment / credit to OAS and action the repayment.
Note: Under no circumstances should you use the function ‘Repay to Customer’ to transfer any payment / credit to OAS yourself. This function is restricted to DMB Banking who are responsible for the movement of all payments into OAS.
Transfer to existing head of duty
There are three ways to reallocate a payment out of ETMP, ‘Hold for other HOD system’, ‘Repay to Customer’ and ‘Transfer to BROCS’. Of the three options available you must only use the ‘Transfer to BROCS’ option. This will allow you to move a payment off the employer record that has been incorrectly allocated and is proper to a non-RTI year still held on BROCS. The payment will transfer directly onto BROCS at the end of the business day.
|1.||‘Hold for other HOD system’ or ‘Repay to Customer’ options should not be used in any circumstance to action a payment / credit.|
|2.||To reallocate to another head of duty (for example, CT) you should follow the existing process of completing a form P565 and pass it to DMB Banking having first ensured you have set a clearing lock against the payment / credit.|
Enter a resubmission date
ETMP refers to a BF date as a resubmission date. When a resubmission date is entered onto ETMP the payment / credit will be hidden from view on the Unallocated Payments work list. The payment / credit will only appear when the resubmission date has been reached.
Transfer to another employer account in ETMP
From April 2013 ETMP will allow you to transfer a payment / credit between accounts, for example, where an employer has more than one PAYE scheme and they have made the payment against the wrong account.