PAYE91062 - Reconcile individual: overpayments: prepare and issue a manual repayment

From 30 March 2009, instead of arranging for a manual payable order (PO) to be typed in Finance or at a local office, originating offices must send a new Payable Order Request Form (PORF) electronically to DMB Banking.

DMB Banking will prepare, print and post the PO to the customer.

Once the PO has been sent, originating offices will be able to access a PO database to obtain a unique PO serial number.

The only exceptions are the dual language offices in North Wales and PO for some foreign authorities issued by the Child Benefit Office.

Where a PO is required in the Welsh language, cases should continue to be referred to the North Wales office for action, see PAYE91060.

Centralisation of the production of PO does not in any way affect existing pre and post security checks or interest calculations.

Use of manual PO should be the exception. Wherever possible repayments and set-offs should be made using the NPS system.

The only repayments that should be made using the manual PO process are

  • Repayments to a nominee where the entry in the PAYEE field on NPS exceeds 27 characters. You should always attempt to abbreviate the entry in this field wherever possible, for example use ‘Re’ rather than ‘Regarding’ or ‘Ltd’ rather than ‘Limited’
  • Multiple year cases where the customer has claimed the refund and the repayments each year are below the tolerance (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (see PAYE93075)
  • (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)(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)
  • P85 claims where there is no NPS record for the customer, an approach to the employer fails, all the information requested from the customer has been supplied and a P14 can be traced in e-Services Filestore
  • In-year cessation repayment claims submitted by occupational pensioners whose subsidiary employment has ceased, PAYE94025 refers
  • In-year bankruptcy repayments
  • Earlier years bankruptcy repayments where Insolvency Claims Handling Unit (ICHU) have a set off for part of the amount. Where the customer is bankrupt CY, any earlier years overpayment is sent to the ICHU to deal with the set off and the balance remains until the year of bankruptcy (BY) ends to be set against any NT underpayment. These are dealt with manually
  • Where the SA Start Year (PAYE93032) has been incorrectly set back to a year earlier than it should have been and you are clearing the year concerned manually, see PAYE93005
  • Where an individual’s spouse or civil partner is in an older age band for age-related allowances and the individual is entitled to a reduced amount of Married Couple’s allowance. Any reduction to the Married Couple’s allowance will not be automatically calculated, therefore you should prepare a P800 SEES Tax Calculation, to calculate the correct amount of Married Couple’s allowance due.