PAYE47105 - employer returns: employer return - overpayments: provisional repayments

Under normal circumstances there should be no unreasonable delay in processing Employer Annual Returns for tax years 2005/06 onwards.

Employers who request a repayment must wait for their Annual Returns to be fully processed on to our systems before they can receive any repayment which may be due to them.

Charge details will be passed from CIS to BROCS early in May and will then be updated daily. If you receive a request for a repayment before the charge details are passed to BROCS inform the employer / contractor that the repayment will be made when all the expected returns have been processed and the actual overpayment established. If the employer states they cannot wait and they will suffer hardship then you can consider a provisional repayment as detailed below.

After the CIS charge details have been passed to BROCS the CIS charge status will be shown in BROCS (Format 9) see PAYE48110.

A repayment for a PSC and XP scheme must wait until all the monthly CIS returns expected have been received and recorded on the CIS system. Repayments must not be made if the CIS Charge Status in BROCS is shown as PROVISIONAL. If the charge status is PROVISIONAL ask the employer / contractor to contact the CIS helpline 0845 366 7899.

Exceptions to this will be

• Where an employer can prove that they will suffer genuine hardship by waiting for the repayment to be made

Or

• Where the employer return includes details of CIS deductions in the following circumstances

For years up to 2007

Or

You must not make a provisional repayment as a result of receiving a complaint based on delay unless hardship is a consideration.

Where an employer contacts you to request a repayment before the return is fully processed, you must follow the instructions contained in the Action Guide ‘Provisional Repayments’ PAYE47106.