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HMRC internal manual

Repayment Claims Manual

Over-repayments: How to deal with replies

The table below tells you how to deal with the claimant’s reply to your

  • proposals for recovering the over-repayment


  • request for the return of an uncashed order.
Reply Action
Claimant agrees to refund the over-repayment Complete form R97.

Put on both the R97(Payslip) and the R97 the District number, R97 consecutive number and account. The Account number changes for R97s posted after the last Friday in October each year.

Use one series of consecutive numbers for all taxes returning to

1 after number 999. The District record R97 consecutive numbers is held by the RSO.

Detach the R97(Payslip).

Send the payslip to the claimant with an envelope ENVBR4(FDW/DU) addressed to FAO(Cashier).

Pass the R97 to the RSO, who is to

  • note the details in the Register of over-repayments
  • retain the form with the Register.    
      Claimant wants to repay by instalments Accept any reasonable instalment arrangement. Aim to recover the over- repayment in 12 months. Extend this period if it seems reasonable to do so.

Refer to Central Policy (Tax Administration Advice Team), Stockport if the parties cannot come to an agreement.

When an instalment arrangement has been agreed

  • write to the claimant setting out the details of the agreed arrangement. Include a sufficient supply of forms R97(Payslip) with envelopes ENVBR4 (FDW/DU). All payslips must show the same consecutive number
  • on the same day pass to the RSO a copy of the letter agreeing the instalment arrangement together with one form R97 showing the full amount. The RSO will deal with the R97 as above.    
      Claimant wants you to apply the Official Error concession or Cenlon/Olin practice Ask an Inspector to confirm that the over-repayment is recoverable.
If the over-repayment is recoverable send a report with the file to BSO, Operational Policy.    
  Claimant returns the payable order Cancel the payable order and place it in the Cancelled Payable Order establishment file. Use OLDC to notify FAO (Payments) that the payable order has been cancelled and that authority to issue a replacement is required. They will send you a form FAO 2601 as authority to issue a fresh payable order.
  Claimant says the payable order has been cashed If you asked for the return of an uncashed payable order but the claimant says it has been cashed use the instructions at RM5148 again to decide whether to recover the over-repayment.
  Claimant sends the refund to the District Complete form 125 (See AD2020 - AD2025 for guidance)

Complete an R97(Payslip). If the claimant’s remittance included tax in local assessments as well as the amount over-repaid, put only the amount of the over-repayment on the R97(Payslip).

Complete a separate form 125 for the balance.

Attach the form 125 to an R97(Payslip).

Mark the R97(Payslip) in red `Form 125 attached’.

Send the remittance with the R97(Payslip) and form 125 to the FAO (Cashier) immediately.

If you have not already done so pass an R97 to the RSO for action as above.    
  Claimant objects to your proposals Pass the claim papers with the file to an Inspector who will tell you what assessment(s) are required.