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HMRC internal manual

PAYE Manual

Employer records: employer record work lists: overpayment disposal (Action Guide)

To deal with entries on the ‘Overpayment Disposal’ work list, follow steps 1 - 7 below. The Guide is presented as follows

Steps 1 - 2

Steps 3 - 6

Step 7

For details of how to access any of the Employer Business Service functions, use PAYE057.


Initial action

  1. In all cases you must use Function VIEW EMPLOYER NOTES and check the employer record pad to review the information recorded and make a brief note on the list of the last action taken for that particular work item

  2. If form P28 has been issued, check if you have received a reply from the Debt Management Office

  • If not use Function AMEND EMPLOYER INDICATORS to set the INSTIND(1) indicator on the employer record
    • Send a reminder to the Debt Management Office
    • Go to step 7
  • If a reply has been received
    • Go to step 3

Reviewing the work items

  1. Consider the last action taken in dealing with the overpayment
  • If all necessary action has been taken go to step 7
  • If no action has been taken, or further action is required go to step 4
  1. You must check the amount of the overpayment notified in Early Morning Output (EMO), or claimed by the employer, to ensure it is correct
  • Use Function VIEW BROCS and select EMPLOYER DATA YEAR SUMMARY (Format 2) to check the amount shown in the COLL field agrees with the amount claimed / notified to you, and take a screen print
  • If the amount is £500 or less and you have not received a request for repayment or reallocation from the employer / contractor follow the instructions at step 7 in ‘Overpayment notification (Action Guide)’ at PAYE47061
  • If the amount agrees go to step 6
  • If the amount does not agree go to step 5
  1. If the amount does not agree then your next action will depend on whether a revised overpayment arises or if there is now no overpayment

No overpayment

  • Use Function AMEND EMPLOYER NOTES to record details of the notification and file it away along with the screen print in the employer record pad
  • If the claim has been received from the employer write to advise them of the position
  • Go to step 7

Revised overpayment

  • Note the revised amount on the notification and go to step 6
  1. Follow the instructions at PAYE47061 if you are required to
  • Reconcile the overpayment
  • Contact the employer, or
  • Refer the overpayment to the appropriate Debt Management Office

Final action

  1. If you are able to re-allocate or repay the overpayment, cross through the case on the monthly list, otherwise
  • Make a brief note on the work list of the last action taken to clear the scheme
  • Keep the entry under review until it is cleared
  • Move on to the next work item