Employer overpayments of PAYE

09 November 2015

If you have overpaid because you entered the wrong amount when paying HMRC, made a duplicate payment or submitted an EPS that creates an overpayment, you can balance your account by paying less in your next payment of PAYE.

What you need to check now:

  • that you have sent all the Full Payment Submissions (FPS) and Employer Payment Summaries (EPS), showing all employee payments
  • that the ‘year to date’ figures are correct
  • your PAYE account at HMRC Online services, go to www.gov.uk/business-tax/paye.

Please note, the tax position on your PAYE account is updated overnight Monday to Friday and will only reflect returns and payments that have reached HMRC systems. It can take several days for payment information to be displayed. If your FPS is received on or before the 5th of the tax month it relates to, you will be able to see your charge from the 12th of the month. If you send a correction between 6th and 19th following the end of the tax month your charge will be updated on the 12th or within 2 days of receipt, whichever is the later.

Providing returns and payments have been made on time, and the correct payment reference has been used, your account should show the right charges and payments and the correct overall position by the start of the following month. Employers therefore need to allow sufficient time and ensure all relevant information is correctly displayed.

This information was published in HMRC Employer Bulletin 56.