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

From HM Revenue & Customs · PAYE Manual

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 POCO Requests, Pseudo Two (PT Operations) 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