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DMBM521075 | Debt and return pursuit: PAYE: e-payment default: e-payment compliance - transfers of large employer records

From HM Revenue & Customs · Debt Management and Banking Manual

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Segmentation

Where an employer record is transferred from one office to another after the specified date, the segmentation band already allocated to that employer should be retained.

Unfortunately this is not happening in all cases and there have been examples where the transfer goes across Banking Operation units and BROCS is applying a segmentation band ‘0’, ‘exempt employer’ to the transferred record.

You are most likely to recognise cases affected while working the ‘old’ pre-transferred reference. Where you recognise that this has happened

  • contact the appropriate Customer Operations, Employer Unit and

  • ask them to amend the segmentation band to ‘1’, ‘large employer’ on the transferred record

  • review all the employer’s previous payments made on this transferred record whilst the wrong segmentation banding was set and issue retrospective defaults where appropriate

  • consult with Debt Pursuit PAYE Process where there is/are

  • default/s for a previous tax year or

  • the default/s are of a contentious nature.

Default count

In addition the current default count on the old reference is not always being carried forward to the new reference. Where this is the case

  • set the clerical surcharge signal on all years of the transferred record and

  • calculate the surcharge on the transferred record clerically (see DMBM521550).

For example:

There were 2 and 3 defaults for 2007-2008 and 2008-2009 tax years on the pre-transferred record (i.e. the default count was 5). The transferred record covers 2009-10 onwards and has 2 defaults. This scheme should now have a current default count of ‘7’ but instead shows ‘2’.

To correct this, calculate the surcharge clerically on the transferred record until the current surcharge period has ended.