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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: introduction to PAYE: payments: permanent overpayments (POP)

An overpayment of £10 or less, identified at the year’s end when the return is processed, is automatically allocated to the POP account by BROCS, removing it from the employers record. Larger amounts can also be clerically allocated but this would only be where a payment is identified as being either:

  • an unclaimed incentive payment for a struck-off limited company
  • a payment which is allocated to a PAYE scheme but does not belong there.

To allocate a payment to POP, move the payment to OAS (Class 4). This can, where necessary, be moved out and back to an employer’s record. To do so, contact DMB Banking Ops with background information and the full details of where it needs allocating to.

No overpayment, regardless of the amount, should be sent to POP for a dissolved limited company unless it is an unclaimed incentive payment. An unclaimed incentive payment is where it has not been incorporated into the payments made for the year.