PAYE98010 - Accounting: end of year: record / reverse revenue loss
When HMRC choose not to pursue an underpayment (debt), or in cases where the underpayment cannot be collected, if permitted you can record the underpayment as a Revenue Loss (remission / write off). You will be able to record or reverse a Revenue Loss from the Underpayment Details screen which is accessed using the Financial Events Summary screen. The PAYE Service will only allow the full amount of the Revenue Loss to be reversed.
There are strict controls on remissions / write offs and there are authorisation levels and procedures that must be followed. You will find the procedures at PAYE90030 onwards and PAYE95000 onwards for Revenue Delay ESC A19 cases.