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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Employer returns: employer return - overpayments: form P565

The form P565 (PDF 26KB) is used to manually dispose of an employer overpayment.

The form P565 is classed as a ‘secure’ form. Only the following officers dealing with employer overpayments may have access to a form P565


  • Repayment Security Officer (RSO) dealing with employer repayments

A form P565 is issued within a form P565 pad. Form P565 pads are held by the RSOs who are responsible for their distribution to the authorising officers.

The form P565 is printed in three parts (original plus two copies) and have a consecutive number printed on the top left hand side of the form.

The form P565 must be completed and signed

  • By the authorising officer to confirm that the overpayment and the disposal instructions are correct


  • Be countersigned by the RSO to confirm that the form P565 has been despatched via the RSO to Banking Operations

When to use a form P565

Note: The process for Local Compliance / LBS to request a reallocation / repayment using a form P565 is detailed in Compliance Operational Guidance COG915097.

The officer investigating the overpayment will complete a form P565 Request Stencil (Word 43KB) to request the completion of a form P565 in the following circumstances

  • 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 part or all of an overpayment to other liabilities, for example reallocate to SA, CT, Reg 80 determination 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 an overpayment to an address other than the correspondence address held on the employer record
  • To repay all or part of the overpayment to NICO
  • A combination of reallocation, transfer or repayment at the same time 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
  • There are unusual circumstances to be brought to the attention of Banking Operations
  • The following indicators are shown on Function VIEW BROCS

    • DTR (referred for district) - 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