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HMRC internal manual

PAYE Manual

Employer returns: employer return - overpayments: form P565 (Action Guide)

If you receive a form P565 Request Stencil you must on the day of receipt follow steps 1 - 6 below. The Guide is presented as follows

  Steps 1 - 5
  Step 6

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

Completion of form P565

  1. The form P565 (PDF 26KB) must be
  • Completed and signed by the authorising officer to confirm that the overpayment and disposal instructions are correct


  • Be countersigned by the Repayment Security Officer (RSO) to confirm that the form P565 has been despatched via the RSO to Banking Operations
  1. You must only complete the form P565 after you have reviewed
  • The up to date position for payments using Function VIEW BROCS (Postings Summary Format 3)

 And, for overpayments relating to a year from2005 onwards

  • The View EOY Returns History screen print to confirm that the Return Status Indicator RSI is RSI 2, unless the overpayment meets the criteria for making a provisional repayment as shown in the ‘Provisional repayments (Action Guide)’ at PAYE47106
  1. When completing the form P565 ensure that you
  • Tick all sections on the form that are applicable. Leave all other sections blank
  • Only use one form if you want to reallocate amounts to more than one year. Enter details regarding any extra years in the ‘special circumstances’ section on the form
  • Write ‘M’ against ‘Tax’ or ‘NIC’ in the details of overpayment section to show a minus amount where appropriate
  • Write ‘Pro-forma return’ in the special circumstances section if the only return for the year for the employer record is a pro-forma return
  • Write the total amount of the repayment and the amount of the notional overpayment if the repayment involves a notional overpayment as in the Action Guide at PAYE47055
  • When the total amount shown in the Disposal of the Overpayment box(es) does not agree with the amount shown on the Disposal of Overpayment, provide details of the reasons for the difference in the ‘special circumstances’ section of the form
  • Enter the correspondence address unless the employer / contractor or their agent asks for the Payable Order to be sent to another address
  • If a CT UTR is provided on the P565 Request Stencil enter this in the Accounts Office / Collection / Head of Duty reference box
  • Ensure that any notes relating to special circumstances in the ‘Report of overpayment’ box on the P565 Request Stencil are transferred on to the form P565, for example  
    • Details of and the reason for any transfer
    • Name and address of the person to whom a repayment is to be made (and attach the authority to repay)
    • The full address if the repayment is to be sent to an address other than the one held on the employer record
    • CIS deductions
    • Where an employer requests a reallocation to CT - details of the CT accounting period, for example, ‘Company request 01/10/08 to set off against CT for year ended 31/12/07’, giving the date on which the employer requested the re-allocation, for example ‘Date request received 30/06/08’
    • Any unusual circumstances that need to be considered
  1. Once the form is completed you must pass all 3 copies to the RSO with the following
  • Form P565 Request Stencil
  • All supporting evidence and documentation
  • The letter (plus copy) to be issued to the employer / contractor advising them how the overpayment has been disposed of
  • Any supporting information from the employer record pad
  1. Use Function AMEND EMPLOYER NOTES to record your actions and provide details of the overpayment disposal

Actions to be taken by Repayment Security Officer

  1. On receipt of the forms P565 and all relevant documentation from the authorising officer, the RSO must
  • Complete the ‘Repayment Security Officer’s’ signature box
  • Where appropriate, consider taking the R400 checks
  • Despatch the form P565 (Part1) to Banking Operations at the appropriate Accounts Office in a sealed envelope (this must be done on a daily basis)
  • File the form P565 (Part 3) in their Form P565 Security File
  • Issue the letter to the employer / contractor advising them of how the overpayment has been disposed of
  • File the following papers in the employer record pad

    • Form P565 (Part 2)
    • The copy letter issued to the employer / contractor


* All associated documentation

Note: Where the employer record pads are held remotely to the RSO, the RSO must follow their existing procedures to ensure that the copy P565 and all associated documentation are filed in the employer record pad.