PAYE47065 - Employer returns: employer return - overpayments: overpayments and amended P35s - repayment of PAYE and NICs in error

A number of cases have been identified where employers have submitted amended forms P35 showing a reduction in the amount of PAYE and NICs due when compared to the original. The amended form P35 is often accompanied by a repayment request. The reason for the amendment and subsequent overpayment is that the directors or employees have agreed to any of the following

• To repay wages and salary to the company
• Not to draw amounts of salary that have been subjected to PAYE and the net credited to the Director’s Loan Account
• To repay salary / wages and take dividends instead

Or

• That the ‘IR35’ legislation does not in fact apply to a particular engagement or engagements

Whereyou become aware of these circumstances in your day to day work, and particularly in the course of investigating an apparent overpayment, do not proceed with providing any overpayment disposal instructions.

You must instead refer the papers to your local technical support with a request that they review the case in accordance with EIM42710.