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HMRC internal manual

PAYE Manual

Reconcile individual: overpayments: introduction

Most overpayments will arise because you need to make an informal tax calculation after the end of year before either the form P14 or equivalent EOY Record information is received, or you need to calculate a repayment during the year of deduction.

The office dealing with a repayment claim can be anywhere and will not necessarily be the office dealing with the primary employment.

Change to tax code

An individual will have less tax to pay if:

  • the tax code is increased during the year
  • changing from non-Scottish to a Scottish code when the Scottish tax rate is lower than the rest of the UK rate
  • changing from a Scottish to a non-Scottish code when the Scottish rate is higher than the rest of the UK rate

The Scottish rates only apply to 2016/17 onwards. See PAYE100035 for more information on Scottish tax.

Their employer will refund any tax overpaid through their wages if the code is amended during the current tax year. If the employer did not operate the amended tax code or the increase to the tax code does not take place in time for the employer to operate it, the employee can claim a repayment from HMRC and we will issue the repayment. Any office will be able to do this providing all the necessary information has been received.