PAYE90015 - taxpayer end of year: taxpayer underpayments: over repayment of tax / supplement

There will be occasions where an over repayment of tax / supplement is made. When this happens the over repayment should be converted to a normal underpayment and coded out unless

• The payable order can be returned or
• The taxpayer objects

If neither of these apply you must issue an informal tax calculation to include the over repayment, this will then usually produce the relevant underpayment for coding out.

Where the informal calculation results in an over repayment that is less than the current tolerance, the tolerance should be applied and no further action should be taken to issue the informal calculation or recover the underpayment. For more information about tolerances see PAYE93145.

Where an informal calculation has already been issued for an underpayment case and you find that there is a further underpayment, that further underpayment should be notified and collected regardless of the amount, (unless you consider the Revenue Delay, Extra Statutory Concession A19 would apply).

You must issue an appropriate explanation to the taxpayer and apply the normal underpayment processes, for example, coding out, entry to SA and so on.