PAYE47116 - Employer returns: employer return - overpayments: refusing an overpayment (Action Guide)

Initial action

Steps 1 - 2

No further returns due

Steps 3 - 6

POP return received

Step 7

Return relates to a tax year up to 2004

Steps 8 - 10

Return relates to a tax year from 2005 onwards

Steps 11 - 13

1.

Establish the reason why the employer or contractor does not wish the overpayment to be repaid or credited to CY+1

• If there are any further returns due for that employer record for that year go to step 2

Otherwise

• Where no further returns are due for the year go to step 3

2.

Where an overpayment has arisen but further returns are due for the year, for example the employer record is one where multiple returns are expected or from information held, an additional or a correction return is expected

• Take no further action

Where no further returns are due, you will need to treat the overpayment as a permanent overpayment.

3.

Complete a form P28

• Explain that the employer or contractor has refused repayment or credit to CY+1

• Attach copies of any relevant papers

4.

Send the form P28 to your Debt Management Office to take up

5.

Use Function AMEND EMPLOYER NOTES to make a relevant note on the employer record that the overpayment (enter amount) for (enter the tax year) has been referred to the Debt Management Office to take up

6.

Use Function AMEND EMPLOYER INDICATORS to set the INSTIND(1) indicator for the year of the overpayment

The Debt Management Office will review the overpayment and will, where appropriate, prepare a Pro-Forma POP return for the relevant Processing Office to capture

7.

On receipt of a pro-forma POP return

• If the return is for a year up to 2004 go to step 8

• If the return is for a year from 2005 onwards go to step 11

8.

Use Function CAPTURE EOY RETURN DETAILS to process the return

9.

Ensure when capturing the return you enter a tick in the NFP checkbox on the REMARKS screen

10.

On receipt of the P228, link with its relevant P14 and forward to NICO

11.

Ensure that, with the exception of a CIS36 return, there are no other returns held at RSI1 for the year, waiting to be consolidated in ERIC then

12.

Use Function RECORD RETURN RECEIPT to record the receipt of the return as a pro -forma complete return, which has passed the paper quality check

In the Record Return Receipt screen enter the following

• Receipt date as the date the Debt Management Office prepared the POP return

• Employer reference

• Submission type as ‘Proforma Complete Return’

• Number of P14s as ‘0’

• Return Status Indicator as ‘RSI2’

• Request that the ECS Penalty Officer set the ‘Temporary Inhibition’ signal on ECS

• Make a P35 note on the ECS Create Notes Screen of why the ‘Temporary Inhibition’ signal has been set

On the following day

13.

Use Function CAPTURE EOY RETURN DETAILS to capture the return as either

• Original Complete

Or

• Additional Complete ensuring that you check the Pro-forma check box

If you have received a POP P14 with the return, attach to the forms and use Function AMEND EMPLOYER NOTES to record your actions and then file the papers in the employer record pad.