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HMRC internal manual

PAYE Manual

Reconcile individual: overpayments: PAYE Service overpayment to be set against self assessment (SA)

Where a PAYE Service overpayment is identified or requested to be set against Self Assessment (SA) liability, you should take the following action

  • Establish the amount of repayment due for the year
  • Set the relevant year to ‘Reconciled - Balanced’
  • Set the No Repayment indicator
  • Update Contact History with action taken
  • Create a Freestanding Credit on the SA record; SAM110082 refers
  • Add an SA note to advise where the Freestanding Credit has originated from
  • Write to the customer advising them of the overpayment and how this has been allocated
  • Where the Freestanding Credit exceeds the SA liability the excess should be repaid from the SA record
  • You must ensure that you pass the papers to the Payable Order Control Officer to enter, without supplement (in the year of origin) the value of the repayment as a Manual Payable Order entering 000000 as the Payable Order serial number (this is to prevent the credit being allowed twice to the customer)
  • Remove the No Repayment indicator where appropriate