Employer returns: employer return - overpayments: completion of form P565 request stencil
The subject is presented as follows
When to use a form P565 Request Stencil
In all cases when dealing with an overpayment notification or repayment claim follow ‘Overpayment notification (Action Guide)’ at PAYE47061.
Potential overpayments relating to a year from 2005 onwards, must only be investigated where the captured return displays a Return Status Indicator (RSI) of either RSI 2 or RSI 3 in the View EOY Returns History screen.
Note: The process for Local Compliance / LBS to request a reallocation / repayment using a form P565 is detailed in Compliance Operational Guidance COG915097.
- To reallocate an overpayment to a year other than the current year (CY)
- To reallocate part of an overpayment to CY
To treat an overpayment as a Permanent Overpayment where
- The amount does not exceed £10 (this was £100 between April 2003 and September 2003) and repayment, reallocation or transfer has not been requested by the employer or contractor
- The overpayment has arisen after the Debt Management Office has reconstructed a Pro-Forma return due to wages records being destroyed / lost
- The officer investigating the overpayment considers that there are other reasons which make repayment, reallocation or transfer inappropriate, at the time or at any time in the future
- The employer / contractor has refused repayment or credit to a later year
- Where an overpayment arises wholly or partially from Construction Industry Scheme (CIS) deductions for example where the CIS deductions recorded on the form P35 exceed the total liabilities due
- To transfer all or part of an overpayment to other liabilities, for example to reallocate to SA, CT, Reg 80 determinations and so on
- To repay part of an overpayment to the employer or contractor
- To repay the total or part of an overpayment to a nominee
- To repay all or part of the overpayment to an address other than the correspondence address held on the employer record
- To repay all or part of an overpayment to NICO
- A combination of reallocation, transfer or repayment at the same or different times, for example, the employer may request that part of the overpayment is repaid and the balance is held in anticipation of a future liability
- To reallocate an overpayment to the appropriate Bona Vacantia recipient when a limited company has been dissolved on the Companies Register, more details in ‘Bona Vacantia and dissolved limited companies’ (PAYE47070)
- The only return received is a Pro-Forma
- The overpayment is as a result of a wrongly allocated payment
- There are unusual circumstances to be brought to the attention of Banking Operations
The following indicators are shown on Function VIEW BROCS
- RFI (referred to Banking Operation) - Format 5
- NORPICAL Format 9 (BROCS will only calculate automatically rpi if the RPICAL signal is set)
- Welsh Language Signal - Format 6
Function VIEW BROCS shows any of the following
- Monies transferred to the Enforcement Office, or to the DSS - Format 3
- Remissions are present - Format 3
- There is an insolvent reference present - Format 1
- No address is available or the case is RLS - Format 1
Completion of form P565 Request Stencil
The form P565 Request Stencil must be completed by the officer investigating the overpayment.
Where the investigating officer has established that there is an overpayment and has determined that this must be disposed of manually using a form P565, the investigating officer must complete a form P565 Request Stencil with
- Details of the overpayment and the disposal instructions
- A clear explanation of why the overpayment arose
The completed form P565 Request Stencil and all supporting documentation must then be referred to the authorising officer (Word 27KB) for completion of a form P565.
Advising the employer or contractor
When referring the P565 Request Stencil to the authorising officer you must attach a letter (plus 1 copy) to be issued to the employer or contractor advising them of how the overpayment has been disposed of.
The letter must advise
- The amount reallocated / transferred / repaid
Why the overpayment arose. Did they
- Forget to account for any incentive payments made
- Forget to account for an overpayment brought forward from a previous year
- Enter an incorrect amount on their form P35 for an advance or reimbursement
- If appropriate, to restrict their next payment to Banking Operations by the amount reallocated to the current year
Following the referral of the overpayment to the Repayment Security Officer use Function AMEND EMPLOYER NOTES to record your actions and provide details of the overpayment disposal then the copy letter must be filed in the employer record pad, together with all other evidence to substantiate the overpayment.