DMBM521270 - PAYE: E-payment non composite defaults: Establishing the return charge for each separate duty type

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DMBM521210 provides guidance on identifying what duty types an employer is expected to pay.

In addition you will be aware which duty types apply to the large employer you are calculating surcharge clerically for by referring to the clerical default stencil you have been maintaining.

There are a couple of ways of establishing the charge for each duty type. The simplest and recommended way is using EBS. If you do not have access to this system, then follow the alternative later BROCS guidance.

Using EBS

  • Log on to EBS
  • select the ‘VIEW EMPLOYER SUMMARY’ option
  • input the employer reference then hit OK
  • select function ‘View - EOY Return Details’
  • highlight the year required then select the ‘EOY Return Details…’ button.

if you are presented with more than 1 version then

  • tab to the last version (e.g. 3 of 3) using the ‘Next’ button and
  • use the ‘Consolidated’ figure as follows:

if you are only presented with 1 version then

  • use the ‘Net Adjustment’ figure as follows

PAYE

Total of box 6 ‘Tax on Returns:’ less box 24 ‘Tax Credits Paid:’ and add box 25 ‘Funding Received:’

NIC

Use the figure show next to the ‘Net Total of NICs:’ prompt

Student Loans

Use the figure show next to box 11 ‘Student Loan Dedns:’

CIS

Use the figure show next to box 8 ‘Dedns on CIS36:’

Using BROCS

PAYE

How you establish the charge for PAYE depends upon whether the employer is also a contractor or not.

Where the employer is also a contractor i.e. BROCS VIEW TAXPAYER DATA - DESIGNATORY DATA - Format 9 (VTP, ASN, DG) shows a SECTION CODE of ‘72-PAYE/NIC/SC’

  • establish the CIS charge, see ‘CIS’ below; then
  • deduct the CIS charge from the NET CHARGE as shown on BROCS VIEW TAXPAYER DATA - SUMMARY - Format 2 (VTP, ASN) and
  • record this PAYE charge figure in the appropriate column on the ‘clerical default and clerical surcharge template’.

Where the employer is not also a contractor i.e. BROCS VIEW TAXPAYER DATA - DESIGNATORY DATA - Format 9 (VTP, ASN, DG) shows a SECTION CODE of ‘70-PAYE/NIC ONLY’

  • view BROCS VIEW TAXPAYER DATA - SUMMARY - Format 2 (VTP, ASN) for the NET CHARGE and
  • record this PAYE charge figure in the appropriate column on the ‘clerical default and clerical surcharge template’.

NIC

  • View BROCS VIEW TAXPAYER DATA - POSTING SUMMARY - Format 3 (VTP, ASN, PS) to find all the month 13 return charge postings that appear under the ‘NIC’ column
  • ‘228’ and
  • ‘AMD’
  • Note: ignore any ‘N1A’ NIC postings; and
  • add the 228 and any AMD postings. This gives you the NIC charge figure
Note: any amounts denoted by an ‘M’ are minus amounts
  • record this NIC charge figure in the appropriate column on the ‘clerical default and clerical surcharge template’.

Student Loans

  • View BROCS VIEW TAXPAYER DATA - POSTING SUMMARY - Format 3a (VTP, ASN, PL) to find all the month 13 return charge postings that appear under the ‘SLOAN’ column
  • ‘228’ and
  • ‘AMD’
  • add the 228 and any AMD postings. This gives you the NIC charge figure (Note: any amounts denoted by an ‘M’ are minus amounts)
  • record this Student Loan charge figure in the appropriate column on the ‘clerical default and clerical surcharge template’.

CIS

  • View BROCS VIEW TAXPAYER DATA - POSTING SUMMARY - Format 3 (VTP, ASN, PS) to find all the month 13 return charge postings that appear under the ‘TAX’ column
  • ‘228’ and
  • ‘AMD’
  • make a note of the serial (SER) number(s) for these postings
  • view BROCS VIEW TAXPAYER DATA - POSTING DETAILS - Format 4 (VTP, ASN, 13 PD*---, where --- is the SER posting number) for the 228 and all AMD posting(s)
  • make a note of the ‘IT-SC’ amount for each posting (Note: Any amounts denoted by an ‘M’ are minus amounts)
  • add these amounts. This gives you the CIS charge figure
  • record this CIS charge figure in the appropriate column on the ‘clerical default and clerical surcharge template’.