Claim funding for a tax refund for your employees

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 us. The rules that apply, and the steps involved in claiming funding, are explained in the sections below.

Overview of the funding process
Information you need to provide
Apply by email
Other methods of applying
Tell us if you have no payment to make
Record keeping and admin
Cymraeg

Overview of the funding process

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 us that you can reduce for this purpose are:

  • PAYE (Pay As You Earn) tax and National Insurance contributions

  • Construction Industry Scheme (CIS) deductions

  • Student loan deductions

If your payment to us for the same period isn’t sufficient to cover the tax refund(s), you can do either of the following:

  • reduce your subsequent monthly or quarterly payments to make up the balance

  • apply to us for funding to cover the balance

Please note that we may refuse claims for funding if your payments for previous months or quarters are not up to date.

Information you need to provide

To apply for funding, you’ll need to provide HM Revenue & Customs (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 using the email facility described below, all the details requested must be provided in one session.

Your application must include the following information:

  • your HMRC Accounts Office (either Cumbernauld or Shipley)

  • your Accounts Office reference (shown on the front cover of your P30BC payslip booklet or P30B letter)

  • your contact details: name, telephone number and if applying by email your email address

  • your Employer PAYE reference (shown on the front cover your P30BC payslip booklet or P30B letter)

  • your employer name

  • the total number of employees you’re claiming for

  • the total amount of funding you’re claiming – this is the difference between the total deductions (of PAYE tax, NICs, etc) you have made from all employees or subcontractors and the total refunds you have to make

Apply by email

We will aim to deal with email applications for funding within seven working days of receiving them.

It is very important that you have all the necessary information to hand before starting to complete your email – once you have started, you cannot save your email and return to complete it later. Each email session lasts 15 minutes.

To send us an email application, choose the appropriate option from the list below.

I’m an employer claiming funding for a tax refund

I’m an agent claiming funding for a tax refund on behalf of up to ten clients

Your email from the HMRC website is secure, but our reply to you is not. We will therefore send you an email confirming that we have received your request, but will not send any further emails.

Further information for agents

You can send claims for up to ten clients on one email.

All the required information for all of the clients covered by your email must be provided in one session, so make sure you have all necessary details to hand.

When asked to select an Accounts Office, choose the one that deals with the majority of your clients covered by your email.

If we do not hold a Form 64-8 for any of the clients covered by your email, we can only communicate with your client. This means that we may not notify you directly of any action that we take.

We 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 this in a different name or sent to another address.

Other methods of applying

Using the email 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. We 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

Tell us if you have no payment to make

You must tell us if you have no PAYE payments to make to us 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 us that no payment is due, we may begin to send you payment reminders.

Tell us online that you have no PAYE payment to make to us

Record keeping and admin

We will send a cheque for any funding issued to your usual communication address.

Please note that we may refuse claims for funding if your payments to us for previous months or quarters are not up to date.

If you receive funding, you must record the amount:

  • now on your form P32 (or equivalent record)

  • at the end of the tax year on your Employer Annual Return (form P35)

Cymraeg

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.

Welsh language help

For more information, or to send us an email 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

Your email from the HMRC website is secure, but our reply to you is not. We will therefore send you an email confirming that we have received your request, but will not send any further emails.

We aim to deal with email applications for funding within seven working days of receiving them.