DMBM521060 | Debt and return pursuit: PAYE: e-payment default: e-payment compliance - payment adequacy checks

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Employers must pay in full as well as on time.

Because of the BROCS “up to date rules” the system accepts any amount as payment in full and closes the IDMS work item. When this happens we may never discover that an employer is making payments on account.

In order to identify employers who are not paying the full amount the DMEU will carry out payment adequacy checks. This is a comparison between what the employer has paid and what we expect the employer to pay.

BROCS reviews all large employer records around the 28th of the month as part of the monthly default process and issues a paper list of employers where payments received fall short of the BROCS EMY by more than a specified percentage.

The review can not take place before the 28th because of the delays in posting CHAPS payments to the employer’s record.

You should receive these lists, headed Payment Adequacy Checks, by 3rd of the following month. If you do not receive the list, contact the IT Service Centre on (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Actioning the review lists

On receipt of these lists, check the BROCS payment history to identify whether there is a logical reason for the payment short fall, such as seasonal fluctuations.

Where you cannot establish a logical reason:

• phone the employer

• ask why the payment appears to be less than anticipated.

Liability paid in full

Where the employer confirms the liability has been paid in full, amend the EMY on BROCS to agree the latest payment figures.

Employer confirms liability not paid in full

Where the employer confirms the liability has not been paid in full:

• confirm with the employer the amount underpaid

• request payment

• warn that a notice will be issued, based on previous history, to specify the employers’ liability with a view to enforcing the debt

• restore LA on BROCS to provide a replacement work item on IDMS.

The following working day you will receive an IDMS work item on your C/W PAYE worklist. On receipt, where the total liability for the period exceeds the P101 limit:

• use the IDMS function “Record Manual Calculation” to issue a P101

• issue a default notice manually

• amend the Default Notice Count on BROCS see DMBM521025

Where, at the expiry of the BF, the work item remains unpaid, follow DMBM521030.

Employer refuses to confirm liability / doubt over figures

If the employer refuses to confirm the amount underpaid or you have reasons to doubt the employer’s figures:

• tell the employer that you will be referring the case to the local DTO to arrange a call to quantify the correct liability and collect any overdue amount

• restore LA on BROCS to provide a replacement work item on IDMS.

The following working day you will receive an IDMS work item on your C/W PAYE worklist. On receipt:

• transfer the work item to the C/W Quant. Officer role in the DTO with a request that they arrange to call to quantify the amount due

• BF 1 month by making an entry on your Outlook Calendar for the relevant date and setting a reminder.

The DTO will be responsible for collection of any balance due but will advise you of the outcome of the call and fax a copy of the P31B.

When you receive confirmation of an overdue liability on form P31B from the local office:

• phone the employer to advise that:

• the quantification has revealed payment shortfalls

• you will be issuing default notices

• issue the relevant default notices manually and

• amend the Default Notice Count on BROCS for each month.