PAYE91090 - Reconcile individual: overpayments: PAYE Service overpayment to be set against self assessment (SA)

Where a PAYE Service overpayment is identified or requested to be set against Self Assessment (SA) liability, you should take the following action

Establish the amount of repayment due for the year
Set the relevant year to ‘Reconciled - Balanced’
Set the No Repayment indicator
Update Contact History with action taken
Create a Freestanding Credit on the SA record; SAM110082 refers
Add an SA note to advise where the Freestanding Credit has originated from
Write to the customer advising them of the overpayment and how this has been allocated
Where the Freestanding Credit exceeds the SA liability the excess should be repaid from the SA record
You must ensure that you email the papers to the Payable Order Control Officer to enter, without supplement (in the year of origin) the value of the repayment as a Manual Payable Order entering 000000 as the Payable Order serial number (this is to prevent the credit being allowed twice to the customer)
Remove the No Repayment indicator where appropriate

PAYE Manual