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HMRC internal manual

National Minimum Wage Manual

HM Revenue & Customs
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After notice of underpayment issued: national minimum wage repayment policy for overpaid penalties

Relevant legislation

The legislation that applies to this page is as follows:

* National Minimum Wage Act 1998, sections 19H(4), 19H(5)


A national minimum wage penalty can be overpaid when:

  • An employer accidently pays too much (NMWM14070);
  • A notice is withdrawn and not replaced (NMWM14220) and the employer has already paid some or all of the penalty;
  • A notice is withdrawn and replaced (NMWM14230), the penalty on the new notice is less then on the original and the employer has already paid more than the amount now due for the penalty.

When a national minimum wage penalty is overpaid, HM Revenue & Customs Debt Management & Banking (DMB) will:

  • Repay to the employer any amount required to be returned by law with interest when appropriate (NMWM03090).
  • Where the amounts are not required to be returned by law;

    • Reallocate amounts accidentally overpaid to other outstanding HM Revenue & Customs’ debt and repay any balance to the employer without interest, or
    • Repay amounts accidentally overpaid without interest where there are no other HM Revenue & Customs debts.