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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Employer returns: employer return - overpayments: overpayments and amended P35s - repayment of PAYE and NICs in error

Do not proceed with providing any overpayment disposal instructions, where

  • An employer submits an original form P35 and makes a request for repayment


  • Submits an amended form P35 showing a reduction in the amount of PAYE and NICs due with a request for repayment


  • The reason for those requests is that the directors or employees have agreed to any of the following

    • To repay wages and salary to the company
    • Not to draw amounts of salary that have been subjected to PAYE and the net credited to the Director’s Loan Account
    • To repay salary / wages and take dividends instead


    • That the ‘IR35’ legislation does not in fact apply to a particular engagement or engagements

Alternatively, where you become aware of these circumstances in your day to day work, and particularly in the course of investigating an apparent overpayment, do not proceed with providing any overpayment disposal instructions.

You must instead refer the papers to your local technical support with a request that they review the case in accordance with EIM42710.