PAYE47100 - Employer returns: employer return - overpayments: PAYE advance (PAD) payments
When a provisional employer repayment is appropriate, the relevant Employer Unit will complete a form P565 and send it to Banking Operations to issue the repayment.
Where insufficient payments are held on the employer’s BROCS record for the repayment year, Banking Operations will issue a PAYE advance (PAD) to repay the employer.
A PAD can only be made from current year (CY) and is cleared when Banking Operations reallocate payments against it from the previous year (CY-1), usually when the CY-1 return is processed and an overpayment is generated.
To avoid duplicate repayments being made to employers, you must use Function VIEW BROCS to ensure that any PAD shown on the employer’s BROCS record has been settled prior to considering a repayment.
The following examples show how a PAD may be dealt with and how it will be shown on the BROCS record
Where no payments have been received for year of the provisional repayment.
|
Year CY-1 |
P565 Provisional Repayment request £500.00 sent to Banking Operations |
|
Year CY-1 |
BROCS Format 3 Postings Summary - no payments received |
|
Year CY |
Banking Operations issue PAD £500.00 BROCS Format 3 shows posting ‘PAD £500.00 M’ |
|
Year CY-1 |
P35 subsequently processed - overpayment £500.00 |
|
Year CY-1 |
Banking Operations reallocate £500.00 to CY to clear the PAD BROCS Format 3 shows posting ‘REA £500.00 M’ |
|
Year CY |
BROCS Format 3 shows posting ‘REA £500.00’ |
Where some payments have been received for year of provisional repayment but not sufficient to cover the entire amount required
|
Year CY-1 |
P565 Provisional Repayment request £500.00 sent to Banking Operations |
|
Year CY-1 |
BROCS Format 3 Postings Summary - £200.00 payment received Banking Operations put £200.00 to Overpayments to repay BROCS Format 3 Postings Summary - ‘D/O £200.00 M’ (amount put to overpayments) |
|
Year CY |
Banking Operations issue PAD £300.00 (balance of provisional repayment) BROCS Format 3 shows posting ‘PAD £300.00 M’ |
|
|
Employer receives one repayment cheque totalling £500.00 |
|
Year CY-1 |
P35 subsequently processed - overpayment £300.00 |
|
Year CY-1 |
Banking Operations reallocate £300.00 to CY to clear the PAD BROCS Format 3 shows posting ‘REA £300.00 M’ |
|
Year CY |
BROCS Format 3 shows posting ‘REA £500.00’ |
