PAYE72085 | PAYE operation: payments for PAYE purposes: unintentional overpayments of pay / pension: PAYE and NICs

Where an employer or pension payer contacts you for advice regarding the PAYE and NICs position where they have unintentionally overpaid pay or pension to an employee or pensioner and paid the deductions to HMRC, advise the employer/pension payer to follow the guidance in the CWG2 (Employer Further Guide to PAYE and NICs) available on Gov.UK under the subject heading ‘Unintentional overpayments of salary or pension’.

Note: Case law (HMRC V Julian Martin) clarified that where earnings are 'clawed' back under precise terms of a contractual agreement between the employee and employer, this does not change the original position of NICs or PAYE deductions. In these circumstances it is not necessary for the employer to make any changes to their RTI submissions - see EIM00800 to EIM00845 for more detailed information.

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