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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Employer returns: Enterprise Tax Management Platform (ETMP): employer repayments

Initiate repayment process

New functionality within ETMP from July 13 allows you to make repayments directly to an employer. This means you will no longer complete a P565 to make a repayment where the overpayment or credit is displayed in ETMP.

The function can be accessed via the Payments & Collection tab and the Repayments folder in the detailed navigation window.

A new access role has been created available through SRS called ‘Initiate Repayment Process’.

On accessing the function users are required to complete two mandatory fields, ‘Tax Payer Reference’ and ‘Payment Method’. The taxpayer reference can be either the employer reference or the BROCS ref.

Repayment method

Credit / Debit card

From the 7th April 2015 ETMP will be enhanced to allow repayments to be paid back to a credit or debit card subject to certain rules.

We will only make repayments to a debit or credit card where:

  • the most recent payment on record was made by debit or credit card
  • the debit or credit card payment was made during the previous nine month period
  • the amount of the refund due is equal to or less than the original debit or credit card payment
  • Only card payment transactions received from the 7th April 2015 will be considered to repay back to a card

Repayment to a card will be considered first in every case and take precedent over a Payable Order or BACS request.

This means ETMP will now automatically decide the method of repayment when you use the ‘Initiate Repayment’ function.

In working the case you should still allow for the fact that the repayment may be sent via a payable order or BACS and update the record accordingly. Capturing the bank details of the customer will set BACS as the preferred option if the repayment cannot be made to a card otherwise it will revert to Payable Order.

Payable order

You must choose the address you wish to send the payable order to using ‘Search’.

The system will then check that a valid address is available in ETMP and present the available choices to you. If no valid address is held you will receive the error message ‘Address details not available’.

If you choose the ‘Payment to Agent’ checkbox and ‘Search’ you will be presented with addresses for available agents.

Note: You will not be able to make a repayment using the payable order method if the characters in the name and address fields in ETMP exceed 28 characters on any one line. Where the payable order method is selected ETMP will check to ensure the number is not exceeded. If it is, you will receive an advisory message telling you that you cannot continue with the process. You should then follow guidance at PAYE48209 to make repayment via OAS.

Once the address is confirmed ETMP will display to you from the unallocated payment work list any unallocated payment or credit held on the employer record.

Select the item(s) you wish to repay and ‘Confirm Repayment’. A confirmation message stating that the repayment has been initiated will then be presented to you.

Notes:

  1. You cannot make a part repayment from this screen. If your intention is to only repay part of the payment or credit you must first work that item on the unallocated payments work list to reduce it to the amount you are intending to repay.

  2. Only one user can make a repayment to an individual employer per day. Once initiated that user can revisit the case if necessary to add or remove other items within the same day. If a different user tries to make a repayment on the same day to that employer they will receive an advisory message ‘A repayment process has already been started by XXXX’ (X = PID of user) and they will not be able to proceed.

They would need to revisit the case on a different day to complete their action.

At the close of the business day all items selected for repayment are then passed to EBS where they will appear on the ‘Authorise Overpayment Disposal’ work list to allow for managers assurance and to pass through the selection process for RSO checks.

A payment lock will be set against the credit on the ‘Unallocated Payments’ work list to prevent the ETMP overnight clearing rules using the credit to set off against another charge while it passes through the repayment cycle.

Where the repayment passes all checks it will be passed back to ETMP to authorise the repayment and add any repayment interest before updating the employer record. Where it fails the manager’s assurance or RSO checks ETMP will not be automatically updated. The manager must notify the user to remove the payment lock to make the credit active again.

BACS

Before a repayment can be made by BACS the preferred bank account for the employer has to be entered into ETMP. The role ‘RTI Enter Repayment Bank Details’ available via SRS has been created to facilitate this.

Once the role is allocated the function ‘Capture Bank Details’ can be found under the ‘Repayments’ node of the ‘Payments and Collection’ tab.

Notes:

  1. For security reasons no one person can be allocated both the ‘Initiate Repayment’ and ‘RTI Enter Repayment Bank Details’ roles.

If a user tries to initiate a repayment by BACS and the bank details have not been entered into ETMP they will receive an advisory message and will not be able to proceed with the repayment. They must exit the function and wait for the bank details to be captured.

  1. ETMP will not keep or retain a history of the bank details entered within the capture function. Once the repayment has completed successfully they are deleted from the capture Bank details screen. Each subsequent repayment via BACS will have to have the bank details captured again.

From April 14 the Employer Payment Summary (EPS) available through commercial software providers is being enhanced to allow the employer to notify us of their preferred bank account details for the repayment.

This information will be stored and available to view in the Employer Business Service (EBS). To access the information you will need the EBS role ‘EBS RTI View’ available via SRS.

To find the EPS that holds the bank details you will have to view each EPS submission in turn. Where the bank account details have been provided on the EPS being viewed the [Account Details] button will be enabled. Selecting this button will display the bank account details.

Unlike ETMP EBS will continue to hold the bank account details following the completion of the repayment.

  1. Employers who use HMRC’s ‘Basic PAYE Tools’ as the means for submitting their RTI returns will not have the facility to provide bank account details on the EPS within this software.

Where the employer states they do not use commercial software or the commercial product they use has not been enhanced to provide bank account details on an EPS and they still wish the repayment to be made by BACS they must write in with their bank account details.

Returned repayments

Where Employer Office NICEO have used the Initiate Repayment function to issue a repayment by either Payable Order or BACS and for whatever reason it is returned to HMRC as unprocessed or the employer states they have not received it then it is the responsibility of the issuing office to investigate the matter and reissue the repayment if appropriate.

Large value repayments

Where you receive a request to make a repayment and the value is £15 million or greater you must notify Finance before proceeding. It is important to contact Treasury Services Forecasting and Reporting team (TSFRT) to agree a payment date before the payment is authorised to go out. This is so HMRC can manage its cash flow position.

Once all the necessary security checks have been completed, but before the payment is authorised for release, an email must be sent to Finance Banking Services (This content has been withheld because of exemptions in the Freedom of Information Act 2000) with the following information:

  • Amount of payment
  • Interest on payment and daily rate it is accruing if applicable
  • Payment regime
  • Method of payment

TSFRT will advise when the payment can be authorised and the date it will be repaid along with the method of payment.