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HMRC internal manual

Self Assessment Manual

Transfer of liability: transfer from PAYE to SA: voluntary direct payments

Circumstances will arise where a voluntary direct payment is received for the year because the SA balancing payment was previously transferred to PAYE for coding out and the taxpayer has made payment to settle the liability in full, or part.

The voluntary direct payment (P211(Z)) procedures will need to be followed where the taxpayer has made payment. However, should the credit have been allocated to the SA record, follow the guidance at SAM140032.

PAYE / SA record

Existing procedures will need to be followed to update the taxpayer’s PAYE record when an SA balancing payment, coded out in PAYE, is settled in full, or part.

Overpaid Voluntary Direct Payments

Where the SA balancing payment is subsequently reduced and the amount coded out in PAYE was settled in full, or in part, any overpaid voluntary payment should be dealt with following the Action Guide for WMI119 -In-year reconciliation - P53 required.

Any excess payment transferred to SA should stay on the SA record until such time as the taxpayer requests repayment, if they have not already done so, or it is allocated against new charges.