PAYE91015 - Reconcile individual: overpayments: early repayments
This subject covers cases where a repayment claim is made before the employer has submitted the P35 return and associated forms P14.
Forms that can be used as evidence for an end of year repayment
- P14
- P60 / P60 duplicate / P60 substitute
- Screen print of Employments which have ceased during the year where a P60 will not be provided
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
Form P60 / P60 duplicate / P60 substitute
When a claim is made for an early repayment a form P60 must be requested first as this provides verified tax details for the year of claim. You should also request any other information needed to establish the repayment due.
One of the ways to request a form P60 is to use the P2 special note, if you are issuing an amended code to the customer. Further details about the P2 special notes can be found at PAYE11035.
We now have no objection to employers giving duplicate forms P60 to their employees. Employers can do this, for example, where employees have mislaid their original and need evidence of their earnings for the previous tax year.
Any duplicates must be clearly marked with the word 'Duplicate'. The first year for which duplicate forms P60 were authorised to be made available by the employer was 2003-04.
When you receive a form P60 or duplicate for early repayment you should confirm that the details have been provided in an approved format and on approved stationery
- If the form has been produced by ‘Online Return and Forms’ it will have the same layout as the version that can be accessed from the ‘Index Of Forms’, available from the left bar in this manual. ‘P60 HM Revenue & Customs - Online Return & Forms PAYE’ will be shown along the bottom of all printed forms P60
- Centrally approved substitute proprietary forms P60 are listed under ‘Substitute Tax Returns and Other Forms’ in the Rates and Tables section of the Library
- Some individual employers and pension funds design their own substitute forms P60 and obtain central approval from HMRC Forms. For 2005-06 and earlier years the forms P60 will not carry an identifier but will show the words ‘P60 (Substitute)’, usually at the bottom of the form. From 2006-07, these forms will also carry an identifier mark and will be listed under ‘Substitute Tax Returns and Other Forms’ under the Rates and Tables section of the Library
If you have any concerns about a P60 or P60 duplicate provided by the customer you should contact the employer to confirm the pay and tax amounts shown.
You should record the P60 detail on form P36B, to be retained with the repayment papers. The P60 should not be returned to the customer until the repayment has been generated and is ready to be issued. At that point, the repayment papers, including the P60 and P36B, should be passed to a Band O officer to be counter initialled.
You should not enter the P60 details where the result will be an underpayment or a balanced position. Instead, you should wait until the record is ripe and automatic reconciliation takes place. You should advise the customer that an informal calculation detailing the underpayment will be issued in due course or that the liability is balanced and no further over or underpayment has arisen.
Form P60 / P60 information received in an Enquiry Centre
A claim for repayment will sometimes be received in an Enquiry Centre accompanied by a form P60 or P60 information. The Enquiry Centre should always try to obtain the original P60 and send this to the Processing office. If however the customer insists that they want to retain the P60 EC staff should date stamp and photocopy the P60, return the P60 to the customer and forward the photocopy to the Processing office.
You can accept claims and P60 information from an Enquiry Centre if any of the following apply
- The original form P60 accompanies the claim
Or
- A form P36B is completed, counter initialled and date stamped by the Enquiry Centre
Or
- The original form P60 has been date stamped and returned to the customer and a photocopy of that form P60 has been date stamped and initialled by the Enquiry Centre and noted that the original has been seen
Employment Summary
Where an early repayment claim is made prior to the deadline for submission of forms P14 / P35, Employment Summary may not hold details of all employments. Where there is a gap in the employment history of 10 weeks or more you are no longer required to issue a Form P92 to obtain the missing information. If a reconciliation is made and further information is submitted to the PAYE Service, the system will automatically re-reconcile.
Employment Screen Prints
Where screen prints are used as evidence in early repayment claims because a P60 will not be provided, the Pay and Tax details should be input as a P60 in the corresponding Employment Screen to trigger reconciliation.
