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HMRC internal manual

PAYE Settlement Agreements

Overview of PAYE Settlement Agreements


In the event of an employer making an overpayment of tax and /or Class 1B NICs theoverpayment must be repaid to the employer, follow PSA2110.

Under Regulation 116 where tax and/or Class 1B NICs is repaid to an employer after 19October following the year to which the PSA applies, interest will be paid from

  • 19 October, or if paid later
  • the date the amount was paid

until the date the repayment is made.