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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

PAYE operation: payments for PAYE purposes: unintentional overpayments of pay / pension: PAYE and NICs

Where an employer or pension payer contacts you for advice regarding the PAYE and NICs position where they have unintentionally overpaid pay or pension to an employee or pensioner and paid the deductions to HMRC, take the following actions.

Employers operating RTI

  • Advise the employer / pension payer to follow the guidance regarding ‘Mistakes’ at Chapter 1, paragraphs 9 and 10 of CWG2 (Employer Further Guide to PAYE and NICs)

For pre RTI tax years

  • Obtain a full explanation why the unintentional overpayment(s) occurred
  • Ask the employer / pension payer why they are making a claim that they were not accountable to make PAYE deductions
  • Confirm the date(s) and amount(s) involved
  • Confirm that the employee / pensioner has repaid or is repaying the net pay which they were not entitled to receive

When you have received these details and the claim for relief of overpaid tax and NICs is satisfactory

  • Advise the employer / pension payer to submit an amended P35 / P14 for the employee(s) concerned in line with paragraph 16 of CWG2
  • Confirm that set off or repayment will be made once these forms are processed

Employer / pension payer unable to recover payment

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Employee / pensioner makes a claim and has repaid gross pay

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)