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HMRC internal manual

PAYE Manual

PAYE operation: incapacity benefit: repayment claims

Unemployment repayment

A customer who receives the non-taxable rate of Incapacity Benefit can claim anunemployment repayment in the normal way.

Cessation repayment

A cessation repayment can only be made where the claimant can certify on form P50 thatthey will not become entitled to the taxable rate of Incapacity Benefit in the current taxyear.

Taxable rate of Incapacity Benefit due

Once the taxable rate of Incapacity Benefit becomes due, repayment claims must not be madeuntil the claim ends or until the end of the tax year. Any such repayments are made by

  • Leics and Northants (IBTO)


  • The new employer if the individual returns to work

The Department for Work and Pensions cannot make them.