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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Employer returns: employer return - overpayments: overpayments: P35 return at RSI3 - years 2004-05, 2005-06 and 2006-07 (Action Guide)

This Action guide applies to returns for Tax Years 2004-05, 2005-06 and 2006-07.

Where a 2004-05 or 2005-06 overpayment is generated on the ‘End of year overpayments not cleared’ monthly control list and the P35 return is shown at RSI3 in EBS ‘View EOY Returns History’ follow steps 1 - 28 below.

Note: Since April 2012 the normal time limit for an employer claiming an overpayment of PAYE tax is 4 years from the end of the relevant tax period. Further information on time limits can be found at PAYE47001.

This Guide is presented as follows

  Steps 1 - 3
   
  Steps 4 - 11
  Steps 12 - 15
  Steps 16 - 25
  Step 26
  Steps 27 - 28

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

Where no forms P14 are required

  Where a P35 return does not require a P14 to be submitted because the only entries on the P35 are in boxes13 - 20, 25 or 31, for example where CIS deductions suffered is the only entry on the P35
   
1. Use Function VIEW EOY RETURNS HISTORY to confirm that there is a P35 return held at RSI3 for 2004-05, 2005-06 or 2006-07
2. Use ‘EOY Return Details’ screen to check the details on the 2004-05, 2005-06 or 2006-07 P35 return
  * Entries must only be shown in boxes13 - 20, 25 or 31
  Note: If entries are shown in other boxes forms P14 are required and steps 4 - 28 apply.
3. Investigate the overpayment following the instructions in ‘Overpayment notification’ at PAYE47060 and ‘Employer return post capture’ at PAYE46000 onwards

Where the P35 return is at RIS3 and the employer / agent has not requested a repayment

|   | Where the employer / agent does not make any contact regarding the potential overpayment and does not request a repayment | || | 4. | Use Function VIEW EOY RETURNS HISTORY to confirm that there is a P35 return held at RSI3 for 2004-05, 2005-06 or 2006-07 | | 5. | Use Function VIEW EMPLOYER NOTES and Function VIEW BROCS (format 5) to ensure that the employer / agent has not contacted HMRC about the potential overpayment | | 6. | Where no contact has been made by the employer / agent, issue a form P28 to Debt Management & Banking (DMB) and | |   | * Tick the box ‘I have been unable to get a satisfactory explanation from the employer about this overpayment’ | |   | * Make a note on the P28 that a pro-forma POP Return, equal to the amount of the overpayment, is required in accordance with Newsboard 622/06 | | 7. | Use Function AMEND EMPLOYER NOTES to add a note ‘NB 622/06 POP £XXX-XX 2004-05, 2005-06 or 2006-07 (as appropriate)’ | | 8. | Use Function AMEND EMPLOYER INDICATORS to set the INSTIND (1) indicator for 2004-05, 2005-06 or 2006-07 | | 9. | DMB will, on receipt of the form P28 | |   | * Complete the pro-forma ‘POP’ return | |   | * Send it to Employer Unit
 
And | |   | * Make the year 2004-05, 2005-06 or 2006-07 WWTD | |   | On receipt of the ‘POP’ return from DMB | | 10. | Follow steps 11 - 13 of ‘Refusing an overpayment (Action Guide)‘ at PAYE47116 | | 11. | Make a note of your actions on the ‘End of year overpayments not cleared’ monthly control list |

Where the overpayment has been put to POP and employer / agent subsequently requests repayment of the overpayment

12. Telephone DMB and request that they prepare a minus pro-forma ‘POP’ return for the amount of the original ‘POP’ return
   
  On receipt of the minus ‘POP’ return from DMB
13. Follow steps 11 - 13 of the Action Guide ‘Refusing an overpayment‘ at PAYE47116
14. Use Function AMEND EMPLOYER NOTES to delete the note ‘NB 622/06 POP £XXX-XX 2004-05, 2005-06 or 2006-07 (as appropriate)’
15. Go to step 16

Where a repayment request is received for 2004-05, 2005-06 or 2006-07 and the P35 return is at RSI3

  Where the employer / agent contacts you about the potential overpayment and requests a repayment, before investigating the potential overpayment, you must consider whether the charge held on EBS / BROCS is a true figure, because CEPT may have processed the return without having all the P35 / P14 information
   
16. Contact the employer / agent
  * Explain that in order to deal with their repayment request, we must confirm the details on the P35 return held at RSI3
  * Ask them to provide us with evidence to support the figures that were submitted on the P35 return held at RSI3
  On receipt of the evidence provided
17. Use Function VIEW EOY RETURNS HISTORY to confirm the details on the 2004-05, 2005-06 or 2006-07 P35 return held on the ‘EOY Return Details’ screen
18. Compare the figures on EBS with those provided by the employer / agent
     
    ### If the figures agree
  19. Use Function AMEND EMPLOYER NOTES
    * Make a note to record that the 2004-05, 2005-06 or 2006-07 RSI3 figures have been confirmed with the employer / agent
  20. Investigate the overpayment following ‘Overpayment notification’ at PAYE47061 and ‘Employer return post capture’ at PAYE46000 onwards
     
    ### If the figures do not agree
  21. Accept the figures supplied by the employer / agent
  22. Use Function VIEW EOY RETURNS HISTORY to ensure that, with the exception of a CIS36, there are no returns held at RSI1 for 2004-05, 2005-06 or 2006-07
  23. If there are returns held at RSI1, other than a CIS36
    * B/F the papers for 4 weeks for the RSI to change
    When all 2004-05 or 2005-06 returns, other than a CIS36, are at RSI2 or RSI3
  24. Use Function CAPTURE EOY RETURN DETAILS to capture a correction return to make the RSI3 return equal to the figures supplied by the employer / agent
    On the following day
  25. Use Function VIEW BROCS, (format 2), to ensure that the charge now agrees with figures supplied by the employer / agent

Where there is still a potential overpayment

26. Investigate the overpayment following ‘Overpayment Notification’ at PAYE47061 and ‘Employer return post capture’ at PAYE46000 onwards
   

Where there is no longer a potential overpayment

27. Use Function AMEND EMPLOYER NOTES to record the actions taken
   
28. Contact the employer / agent to advise the revised position