PAYE47001 - Employer returns: employer return - overpayments: introduction
Each employer and contractor must submit a return to HMRC. The return is a summary of
- Tax and National Insurance deductions made from employees and subcontractors
- Total payments of tax credits made to certain employees
- Student and/or Postgraduate Loan deductions made from employees who are Student and/or Postgraduate Loan borrowers
- CIS deductions suffered by a limited company
There are different types of returns and some employers may submit more than one return of the same or different type in any tax year.
From April 2007 contractors have to submit monthly returns direct to CIS. For years 2007 to 2008 onwards contractors are no longer required to submit a CIS36 return.
This section covers overpayments that result from the capture of the return.
The remainder of this subject is presented as follows
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Overpayments and dissolved limited companies (Bona Vacantia)
CIS deductions suffered (CIS)
Time limits
Tax Credits
Data Protection Act
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Overpayments and dissolved limited companies (Bona Vacantia)
A limited company is a legal entity and where a limited company ceases to trade and is ‘dissolved’ on the companies register, its directors and / or shareholders are not entitled to any repayment due to the company. More information is available in ‘Bona Vacantia and dissolved limited companies’ at PAYE47070.
CIS deductions suffered (CIS)
From 6 April 2002, limited companies, that have deductions made from their income as subcontractors, are able to set-off these deductions against their monthly or quarterly PAYE / NIC and any CIS liabilities due from their employees and / or subcontractors.
The amount set-off is returned by completing the CIS deductions suffered box on their annual return form P35.
At the end of the tax year, following receipt of the company's P35 return and where the company acts as a subcontractor, any excess CIS deductions which cannot be set-off against PAYE tax / NIC may be refunded or set off against other liabilities.
Further information can be found in the CISR Manual.
Time limits
New time limits came into force on 1 April 2010 although some transitional provisions meant that for some repayments these time limits did not take effect until 1 April 2012. Since 1 April 2012 the normal time limit for an employer claiming an overpayment of PAYE tax is 4 years from the end of the relevant tax period. However, there are different time limits for claiming an overpayment of NICs as set out in the following table.
Income Tax
Tax Year |
Time Limit |
|---|---|
2017 to 2018 |
5 April 2022 |
2018 to 2019 |
5 April 2023 |
2019 to 2020 |
5 April 2024 |
2020 to 2021 |
5 April 2025 |
2021 to 2022 |
5 April 2026 |
2022 to 2023 |
5 April 2027 |
Class 1 National Insurance Contributions
Tax Year |
Time Limit |
|---|---|
2015 to 2016 |
5 April 2022 |
2016 to 2017 |
5 April 2023 |
2017 to 2018 |
5 April 2024 |
2018 to 2019 |
5 April 2025 |
| 2019 to 2020 | 5 April 2026 |
2020 to 2021 |
5 April 2027 |
2021 to 2022 |
5 April 2028 |
2022 to 2023 |
5 April 2029 |
Class 1A and Class 1B National Insurance Contributions - payable in the year after the tax year to which they relate
Tax Year |
Time Limit |
|---|---|
2014 to 2015 |
5 April 2022 |
2015 to 2016 |
5 April 2023 |
2016 to 2017 |
5 April 2024 |
2017 to 2018 |
5 April 2025 |
2018 to 2019 |
5 April 2026 |
2019 to 2020 |
5 April 2027 |
2020 to 2021 |
5 April 2028 |
2021 to 2022 |
5 April 2029 |
2022 to 2023 |
5 April 2030 |
Tax Credits
- From April 2001 - tax credits were paid to employees by employers (PVE); details were included on the return
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- From March 2006 - tax credits paid to employees by employers (PVE) ceased and are now paid direct to the recipient
Note: If an employer tells you that they have paid Working Tax Credit after 31 March 2006 and / or has carried forward Tax Credit Funding into 2006 to 2007, you should advise the employer to contact the Employer Helpline on 0300 200 3200 (text phone 0300 200 3212).
You must ensure that any overpayment is reviewed together with the guidance in PAYE53011 or PAYE53012.
Data Protection Act
The provisions of the Data Protection Act 1998 (DPA) apply to employer records in the same way as they apply to taxpayer records on other HMRC computers.
You must only access an employer record if you have a business need to do so.
Bear in mind that an audit trail is created every time you access an employer record. Any unauthorised or inappropriate accesses will be considered for action under the Department’s Conduct and Discipline rules, and may constitute a criminal offence.