PAYE77085 - PAYE operation: incapacity benefit: repayment claims

Unemployment repayment

A taxpayer who receives the non-taxable rate of Incapacity Benefit (IB) can claim an unemployment repayment in the normal way.

Cessation repayment

A cessation repayment can only be made where the claimant can certify on form P50 that they will not become entitled to the taxable rate of IB in the current tax year.

Taxable rate of Incapacity Benefit due

Once the taxable rate of IB becomes due, repayment claims must not be made until the claim ends or until the end of the tax year. Any such repayments are made by

• Leics and Northants (IBTO)

Or

• The new employer if the taxpayer returns to work

The Department for Work and Pensions cannot make them.