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HMRC internal manual

PAYE Manual

Employer returns: employer return - overpayments: trade dispute: refund not made at due time

It may not always be possible for an employer to pay a suspended refund to an employee. For example the employee may leave without

  • Giving notice


  • Leaving a forwarding address

If a refund is not paid within 42 days of the due time the employer must

  • Pay the sum to the Debt Management Office
  • Add the tax not refunded to the final figure of tax on form P14 at the end of the tax year
  • Show the tax due according to the tax tables where form P45 is issued in the same tax year