DMBM520075 - Debt and return pursuit: PAYE: introduction to PAYE: payments: reallocations and repayments

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Automatic reallocations

BROCS will automatically re-allocate payments at the year’s end when the return is processed. This can be between overpayments and underpayments of Tax and NIC or if the whole record is overpaid by £500 to £10.01, a reallocation to the following tax year.

BROCS will automatically allocate overpayments of £10 or less to Permanent Over-Payments (POP).

Clerical reallocations and repayments

Repayments are generally actioned by DMB Banking Operations. Debt Technical Offices (DTOs) can initiate repayments when they are satisfied that an overpayment is genuine by completing a DTO Repayment Instruction Form from SEES, and sending it to the correct Employer Banking Unit via e-form.

The reason for the overpayment should be clearly recorded on BROCS and the overpayment should not be moved into OAS.

Reallocations between PAYE schemes where the BROCS records are owned by different Accounts Offices will need to be actioned by DMB Banking Operations. The DTO can move the appropriate payment into OAS and BROCS should be notes with the correct reallocation instructions and the reason for reallocation.

An e-form should be sent to the appropriate Employer Unit (Banking) detailing where the payment needs to be reallocated.

Banking Operations will also reallocate and repay on instructions from Customers Operations offices.

Noting records

You should make a BROCS History Note in addition to any IDMS Action history when reallocating a payment across BROCS schemes/references.

The following are examples of the kind of evidence that should be included. This list is not exhaustive;

  • reason for reallocation
  • name and role of the person (for example accountant, payroll agent, financial secretary and so on) who has authorised the payment reallocation
  • type of contact
  • date (if different from ‘today’)
  • key extracts from letter authorising reallocation.

For example, “PHONEIN xxxxxxxx. FD Mr Smith req rea”.