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Overpaid PAYE
Employers who have overpaid their PAYE may have to wait longer than expected for repayment as HMRC say that it is taking them longer to process the information from 2004-05 online employer's annual returns this year, because of additional testing of its new computer system. Once the information is posted onto HMRC's systems it will identify the employers who have overpaid PAYE and investigate how the overpayment happened.
HMRC are aware that some employers need to reclaim their PAYE overpayment before they have processed the return. Employers who think they have overpaid, and need to claim a repayment urgently, can reduce their next monthly or quarterly 2005-06 PAYE payment to HMRC by the amount they think they have overpaid. Employers who reduce their next payment, should send a 'nil' payslip (P30B) for any month or quarter the overpayment is more than the amount due. A reminder will not then be sent for that particular period.
Employers who cannot recover the overpayment by reducing their next payment, for example because they are not liable to make a payment of PAYE, must write to their HMRC office to claim their repayment quoting their PAYE reference. Employers who sent their return online must also show details of the total amount payable for the 2004-05 tax year. HMRC will check their payment records and repay any overpayment. Employers must say if they want the repayment to go to a bureau or payroll agent and the name and address to whom the cheque should be sent. This can be done on form R38.
Employers who send their return online must only claim a repayment where they have had HMRC's acceptance message for every part of their online return.
HM Revenue and Customs statement, 17 June 2005.
