You paid HMRC the wrong amount

What you need to do to correct a payment depends on whether you paid too much or too little, and how the error occurred.

If you’ve paid HMRC too little

If you underpaid because of a mistake in your Full Payment Submission (FPS) or Employer Payment Summary (EPS), correct it in your next regular report. HM Revenue and Customs (HMRC) will add the underpayment to your next PAYE bill.

If you underpaid because you entered the wrong amount when paying HMRC, pay the balance as soon as possible or you may have to pay interest or a penalty. Use your Accounts Office reference when paying.

If you’ve paid HMRC too much

If you overpaid because of a mistake in your FPS or EPS, make the correction in your next regular report. HMRC will take the overpayment off your next PAYE bill.

If you overpaid because you entered the wrong amount when paying HMRC, or you made a duplicate payment, you can balance your account by paying less in your next PAYE bill.

You can also claim a refund if you’ve overpaid by contacting HMRC’s employer helpline.

HMRC will repay directly into your account if you’ve sent an EPS with your bank details.

Write to HMRC with your bank details if you cannot include them with your EPS.

Reclaim an overpayment for a previous tax year

You must work out why you overpaid before you can reclaim an overpayment for a previous tax year.

Work out why you overpaid

Compare what you’ve paid HMRC with what you’ve owed in your tax account. You may have overpaid if your payments did not take into account:

  • an overpayment carried over from a previous tax year
  • Statutory Sick Pay (SSP) or statutory pay for parents that you were entitled to reclaim
  • any repayments made to employees, for example because you used the wrong tax code
  • any corrections to your reports
  • student loan deductions
  • employees who left, for example because you did not report them correctly to HMRC
  • any incentive payments from HMRC to send reports online
  • any Construction Industry Scheme (CIS) deductions, or if you made deductions incorrectly

You also may have overpaid if you paid HMRC:

  • for the wrong tax year
  • more than once for the same bill
  • an estimated amount in advance

For duplicated or estimated payments, tell HMRC what you paid, what you should have paid and why you paid the additional amount.

Making your claim

Once you know why you’ve overpaid, you can claim your repayment from HMRC. You’ll need to tell them:

  • your business’s name and address
  • your PAYE reference - this is in your employer registration letter from HMRC
  • your contact telephone number
  • how much you’ve overpaid - for each tax year you’re claiming
  • the tax month you overpaid in (if possible)
  • why you overpaid - for each tax year you’re claiming
  • whether you’ve claimed this overpayment before

HMRC will offset the amount against your PAYE bill in the current tax year. If you do not owe anything, they will offset the amount:

  • against a PAYE bill from a previous tax year
  • against other taxes you owe, for example Corporation Tax

You’ll only get a refund if you do not owe HMRC any tax.

You must apply by letter if your company has been dissolved or struck off.