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鈥檚 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鈥檚 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听
| Year | What is shown in BROCS |
|---|---|
Year CY-1 |
P565 Provisional Repayment request 拢500 sent to Banking Operations |
Year CY-1 |
BROCS Format 3 Postings Summary - no payments received |
Year CY |
Banking Operations issue PAD 拢500. BROCS Format 3 shows posting 鈥楶AD 拢500.00 M鈥� |
Year CY-1 |
P35 subsequently processed - overpayment 拢500 |
Year CY-1 |
Banking Operations reallocate 拢500 to CY to clear the PAD. BROCS Format 3 shows posting 鈥楻EA 拢500.00 M鈥� |
Year CY |
BROCS Format 3 shows posting 鈥楻EA 拢500.00鈥� |
Where some payments have been received for year of provisional repayment but not sufficient to cover the entire amount required听
听
| Year | What is shown in BROCS |
|---|---|
Year CY-1 |
P565 Provisional Repayment request 拢500 sent to Banking Operations |
Year CY-1 |
BROCS Format 3 Postings Summary - 拢200.00 payment received. Banking Operations put 拢200 to Overpayments to repay. BROCS Format 3 Postings Summary - 鈥楧/O 拢200.00 M鈥� (amount put to overpayments) |
Year CY |
Banking Operations issue PAD 拢300 (balance of provisional repayment). BROCS Format 3 shows posting 鈥楶AD 拢300.00 M鈥� |
听 |
Employer receives one repayment cheque totalling 拢500 |
Year CY-1 |
P35 subsequently processed - overpayment 拢300 |
Year CY-1 |
Banking Operations reallocate 拢300 to CY to clear the PAD. BROCS Format 3 shows posting 鈥楻EA 拢300.00 M鈥� |
Year CY |
BROCS Format 3 shows posting 鈥楻EA 拢500.00鈥� |
听