ECH22507 - Yield Recording: Recovery Methods

The principles of yield recording apply regardless of which method of recovery is used.

Most reviews are concluded with a contract settlement between the employer or contractor and HMRC. However in some cases a contract settlement cannot be agreed and the ECO will have to pursue the underpayment by the formal route.

Where a year remains open the ECO should

• collect any outstanding returns (appropriately corrected)
• collect any underpayment and
• arrange for End of Year Section to process the returns

If it is not possible to collect the outstanding returns the ECO should

• document the reasons why on the papers
• pursue the underpayment by another method
• inform End of Year Section of the action taken
• ensure that individual National Insurance records are updated

Where underpayments that would usually be collected by another section are being included in the contract settlement the ECO must

• ensure that liaison takes place and
• that duplicate action is not undertaken

For example, where fixed penalties have been issued via ECS but the employer wishes to make payment as part of the contract the ECO must notify EOY Section and request that ECS is inhibited.

There are several recovery methods within the ECS System. The ECO should

• ensure that yield is recorded against the correct recovery method.

Some reviews may involve more than one recovery method. This should be reflected within ECS.