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HMRC internal manual

PAYE Manual

PAYE operation: simplified deduction schemes: repayment during year on cumulative basis

Note: DOME schemes became standard P schemes from 6 April 2014. This guidance refers to all years up to and including 2013-14.

Where payments fluctuate, an employee within the simplified deduction scheme may claim that a refund would be due if the employer used the cumulative basis. If such a claim is made

  • Complete and issue a new deduction card P12
  • Ask the employer to

    • Return the old card P12


    • Remit the tax shown on it to Banking Operations
  • Obtain form P12R from the Employer section
  • Calculate the repayment due, using

    • Pay and tax figures for the year to date
    • Cumulative Tax Tables to the last pay day on the old code
  • Make any repayment using a Manual Payable Order

    • Prepare a manual R23 and SEES R37
    • Pass the case through, with the P12R, to the nominated officer for a manual payable order to be prepared
  • Once the R23 is passed back to you, you must access the ‘Record Manual Repayment’ screen
  • Record

    • The amount of the repayment
    • The PO Serial number
    • The date of issue of the repayment
    • The person to whom the PO has been issued if this is a nominee