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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: PAYE: introduction to PAYE: payments: advances - statutory payments and tax rebates

Employers can fund statutory payments (sick pay, maternity pay and so on) and tax rebates (refunds) they make to their employees, by deducting the required amount from their monthly or quarterly PAYE payment to HMRC.

There will be occasions when the employer needs to pay employees more than their payment to HMRC and in these circumstances they can apply for an advance from HMRC to cover the excess payment. They can claim by email from the HMRC website or apply in writing to their Accounts Office.

If the employer has no PAYE to pay for a particular period because they have used their monies to pay a statutory payment or tax rebate, they must advise HMRC that no payment is due so that payment reminders are not issued.