PAYE47021 - Employer returns: employer return - overpayments: completion of form P565 request stencil (Action Guide)
Note: Potential overpayments relating to a year from 2005 onwards, must only be investigated where the captured return displays a Return Status Indicator (RSI) of either RSI 2 or RSI 3 in the View EOY Returns History screen.
If you have established that the overpayment must be disposed of manually using a form P565 you must complete a form P565 Request Stencil (Word 43KB) for referral to your authorising officer (Word 27KB). The Guide is presented as follows
Step 1 Completion of the form P565 Request Stencil
Step 2 Referral to the authorising officer
For details of how to access any of the Employer Business Service functions, use PAYE057.
Completion of the form P565 Request Stencil
Note: The form P565 Request Stencil must be completed by the officer investigating the overpayment.
1. When completing the form P565 Request Stencil you must
- Complete the whole of the left hand side of the form
- When a CT UTR is provided by the employer, or traced by you, note this on the Request Stencil under Employer reference
- Provide a detailed report of how the overpayment has arisen highlighting any special / unusual circumstances
- Tick all applicable sections on the right hand side of the form. Leave all other sections blank
- Enter the correspondence address unless the employer / contractor or their agent asks for the Payable Order to be sent to another address
Note the ‘Report of Overpayment‘ box ‘CIS deductions’ where an overpayment arises from Construction Industry Scheme (CIS) deductions only, for example where the CIS deductions recorded on the form P35 exceed the total liabilities due.
Note: An overpayment of CIS deductions has an EDP of 19 April following the end of the tax year in which the overpayment arose. When setting off an overpayment of CIS deductions against a CT or SA debt the common period rules need to apply so that if a debt is due later than 19 April the due date is used and repayment interest added.
- Where an employer requests a reallocation to CT - Note in the 'Report of Overpayment' box, details of the CT accounting period, for example 'Company request 01/10/08 to set off against CT for year ended 31/12/07', giving the date on which the employer requested the re-allocation, for example ‘Date request received 30/06/08’
- Where an overpayment is to be reallocated to the appropriate BV authority in the Report of overpayment box include the following
- The name of the BV recipient (banking will deal with address etc)
- The amount of BV being sent
- The name of the company
- The company registration number CRN
- Note the 'Report of Overpayment' box 'Repayment to third party nominee for 'struck off' company - copy mandate attached'
- Note the 'Report of Overpayment' box where the BROCS NORPICAL indicator is set (Format 9)
- Only use one form if you want to reallocate amounts to more than one year. Where the overpayment is to be allocated to more than one year include full details in the ‘overpayment report’ box on the left hand side of the form
- Include details in the ‘notional overpayment’ box on the right hand side of the form if the repayment involves a notional overpayment
- Attach evidence of the outstanding liability if the repayment, or any part of the repayment is to be reallocated to another type of tax
- Attach the authority to repay which must include the full name and address of the payee if any part of the repayment is to be repaid
- Sign and date the form P565 Request Stencil
Referral to the authorising officer
2. Refer the completed form P565 Request Stencil to the authorising officer together with the following documents (where applicable).
For overpayments relating to a year from 2005 onwards
- Screen Print of the View EOY History screen
For all years
- Screen Print of BROCS EMPLOYER DATA SUMMARY (Format 2)
- Screen Print of BROCS POSTINGS SUMMARY (Format 3)
- Screen Print of return details in ERIC tracking tool
- Any other evidence to substantiate the overpayment
- The authority to repay where the overpayment is to be repaid
- Evidence of the outstanding liability where the overpayment is to be reallocated to another type of tax
- Any supporting information from the employer record pad
- A signed letter (plus 1 copy) to be issued to the employer or contractor advising them how you have disposed of the overpayment. The letter should advise
- That we have dealt with their request for repayment and either
That the amount will be reallocated / transferred
or
That a further letter will be issued by the Accounts Office with their payment to confirm (once the amount has been authorised) the amount being repaid
- That the repayment is subject to security checks that may delay repayment
- Why the overpayment arose
- Did they
Forget to account for any incentive payments made
Forget to account for an overpayment brought forward from a previous year
Enter an incorrect amount on their form P35 for an advance or reimbursement
- If appropriate, to restrict their next payment to Banking Operations by the amount reallocated to the current year
Note: Where the disposal instruction is ‘Repay’, the disposal will be subject to additional security rules and may be referred to the Repayment Security Officer for review. This may delay the release of the disposal. Further information can be found in ‘Using function overpayment disposal (Action Guide)’ at PAYE47126.