If you need to make a tax refund to any of your employees but have insufficient other deductions available to cover it, you may be able to claim funding from HM Revenue & Customs (HMRC). The rules that apply, and the steps involved in claiming funding, are explained in the sections elow.
Overview of the funding process
Information you need to provide
Apply online
Other methods of applying
Tell us if you have no payment to make
Record keeping and admin
Cymraeg
If you need to make a tax refund to one or more of your employees, you can fund it by reducing your monthly or quarterly payments to us by the amount of the refund(s). The payments to HMRC that you can reduce for this purpose are:
If your payment to HMRC for the same period isn’t sufficient to cover the tax refund(s), you can do either of the following:
Please note that HMRC may refuse claims for funding if your payments for previous months or quarters are not up to date.
To apply for funding, you’ll need to provide HMRC with information about your PAYE scheme and about the funding you’re requesting.
It's important to gather this information before starting the application process, because errors in the information you submit may cause delays in the processing of your application. And if you apply online all the details requested must be provided in one session. If you are claiming funding for payments to more than one employee you will need to make a separate application for each employee.
HMRC prefer that you use the online application form because it is secure and fast. If you prefer to send a letter or fax then your application must include:
HMRC aim to deal with online applications for funding within six working days of receiving them.
It is very important that you have all the necessary information to hand before starting to complete your online application – once you have started, you cannot save your form and return to complete it later. Each online session lasts 15 minutes.
To send an online application, choose the appropriate option from the list below.
Apply for funding for a tax refund
The email generated by the online form is secure, but the reply to you is not. This reply will therefore only confirm that HMRC have received your claim - it will not contain any confidential information.
You can send claims on behalf of your clients but you will need to complete a separate claim for each client and each of their employees.
If HMRC do not hold a Form 64-8 for the client covered by your application, they can only communicate with your client. This means that HMRC may not notify you directly of any action that they take.
HMRC will make cheques payable to the employer and send it to the usual communication address. You must apply by post or fax if you want payment in a different name or sent to another address.
Using the online facility above is the most convenient way of applying for funding. However, you can also apply by post or fax using the contact details below. HMRC aim to deal with applications made by post or fax within 14 working days.
Please mark clearly on your letter or fax 'Funding application for tax refund'.
By post
Accounts Office Shipley
Victoria Street
Shipley
West Yorkshire
BD98 8AA
Accounts Office Cumbernauld
St Mungo’s Road
Cumbernauld
Glasgow
G67 1YZ
By fax
Accounts Office Shipley
Fax: 01274 539651
Accounts Office Cumbernauld
Fax: 01236 785251
You must tell HMRC if you have no PAYE payments to make for a month or quarter. This still applies if the reason you have no payment to make is that you have used all your deductions for the period to contribute to a tax refund to one or more of your employees.
If you do not tell HMRC that no payment is due, they may begin to send
you payment reminders.
Tell us online that you have no PAYE payment to make to us
HMRC will send a cheque for any funding issued to your usual communication address.
Please note that HMRC may refuse claims for funding if your payments for previous months or quarters are not up to date.
If you receive funding, you must record the amount:
Am fwy o wybodaeth, ac i anfon e-bost atom yn y Gymraeg, defnyddiwch y cysylltiad canlynol. Neu, gallwch ffonio’r Ganolfan Gyswllt Gymraeg ar 0845 302 1489.
Anfon e-bost
Cymraeg
Mae eich e-bost o wefan Cyllid & Thollau EM yn ddiogel, ond nid yw ein
hateb i chi. Felly, byddwn yn anfon e-bost atoch yn cadarnhau ein bod wedi
derbyn eich cais, ond ni fyddwn yn anfon unrhyw negeseuon e-bost pellach.
Anelwn at ymdrin â cheisiadau e-bost am gyllid o fewn saith diwrnod gwaith ar ôl eu derbyn.
For more information, or to send HMRC an online application in Welsh, please use the following link. Alternatively, you can call the Welsh Contact Centre on Tel 0845 302 1489.
Welsh language
employer pages and email contacts
The email generated by the online form is secure, but the reply to you is not.
This reply will therefore only confirm that HMRC have received your claim -
it will not contain any confidential information.
HMRC aim to deal with online applications for funding within six working days of receiving them.
