PAYE72085 - PAYE operation: payments for PAYE purposes: unintentional overpayments of pay / pension: PAYE and NICs

Where an employer or pension payer contacts you for advice regarding the PAYE and NICs position where they have unintentionally overpaid pay or pension to an employee or pensioner and paid the deductions to HMRC, take the following actions.

During the tax year

• Advise the employer / pension payer to follow the guidance regarding Mistakes at Chapter 1, Paragraph 10 of CWG2 (Employer Further Guide to PAYE and NICs)

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For a closed tax year

• Obtain a full explanation why the unintentional overpayment(s) occurred
• Ask the employer / pension payer why they are making a claim that they were not accountable to make PAYE deductions
• Confirm the date(s) and amount(s) involved
• Confirm that the employee / pensioner has repaid the net pay which they were not entitled to receive

When you have received these details and the claim for relief of overpaid tax and NICs is satisfactory

• Advise the employer / pension payer to submit an amended Form P35 and Form P14 for the employee(s) concerned
• Capture these Forms in the normal manner
• Confirm that repayment will be made once these Forms are processed

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)