PAYE21200 - employer records: maintain employer record: reimbursements and advances

When does a reimbursement or advance arise?

An employer may claim a reimbursement or an advance where the total refunds he or she has had to make for an Income Tax month or year are more than the deductions he or she has made.

Responsibility

Reimbursements and advances are the responsibility of Banking Operations and if you receive any applications or enquiries then these should be referred to Banking Operations immediately.

Any claims made by the employer must be

• In writing

And

• Explain how the amount claimed has been worked out

Reimbursements

The employer will be eligible to make a claim for reimbursement if at the end of any Income Tax month the total PAYE refunds to employees exceed the deductions.

The reimbursement can be claimed from Banking Operations for the appropriate amount or alternatively it can be claimed from the amount of tax to be paid over to Banking Operations for the next month.

Advances

An employer will make a claim for an advance if they have insufficient tax or NIC in hand to make a refund(s) to its employees.

Claims received in your office

You may receive a claim

• Direct from the employer

Or

• From another section within your office

You may also receive a memo from Banking Operations. This will happen if a claim is received there after receipt of the form P35 for the year has been received but before P228 details for that year have been recorded.

You must treat any claims you receive as priority and take the appropriate action on the day of receipt.