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HMRC internal manual

PAYE Manual

Employer returns: employer return - overpayments: authorising officer's guide

The subjects ‘Overpayment notification’ at PAYE47060 and ‘Disposing of an overpayment’ at PAYE47025 explain the actions required by the officer investigating an employer overpayment to reconcile the overpayment and to determine the method of disposal.

Once the officer is satisfied that the overpayment is correct they must refer the following to their authorising officer (Word 27KB) to review the proposed action

Providing the authorising officer is satisfied that all the following are correct they will authorise the overpayment

  • Overpayment
  • Disposal instructions


  • Letter to be issued to the employer / contractor advising them about the overpayment

Note: A letter is not required when £500 or less is reallocated to the current year (CY) using Function OVERPAYMENT DISPOSAL because BROCS will automatically issue a letter.

They will authorise the overpayment by either

  • Using Function AUTHORISE OVERPAYMENT DISPOSAL for automated overpayment disposals


Note: The function AUTHORISE OVERPAYMENT DISPOSAL is allocated to staff at officer grade and above for authorising overpayment instructions.

Request Stencil received from a Local Compliance or LBS officer

During an investigation, an LC or LBS officer may justify a PAYE / NIC / CIS overpayment recorded on BROCS and identify an underpayment in another head of duty. If the officer decides that the overpayment should be reallocated, you will receive an authorised ‘Form P565 - Request Stencil from Compliance Officer’ with detailed reallocation instructions. This should be checked and the form P565 prepared in accordance with step 10 of PAYE47011.

As with all forms of overpayment work this work must be done as a matter of priority.