Overpayments
Online Filing – Tax-free Incentive Payment Scheme
End of Year Due by date
2004/5
2005/6
2006/7
2007/8
2008/9
2009/10
19/05/2005 19/05/2006 19/05/2007 19/05/2008 19/05/2009 COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Incentive £250 £250 £150 £100 £75 Abolished Online filing means using EDI (Electronic Data Interchange) or the Internet. Use of magnetic media i.e. tapes, cartridges, floppy discs, CD-ROMs is not classified as ‘online’. For the last time for 2012/13 employers had to file both online and to HMRC’s Quality Standard by 19th May, final returns under RTI will be due by 19th April. In-year filing Employers with 50 or more payees in a PAYE scheme (including pension payrolls) were required to file in-year forms (i.e. P45s and the suite of P46 forms) from 6th April 2009 and schemes with under 50 payees faced the same mandation from 6th April 2011. As at 6th April 2016, there is no requirement to receive forms online from HMRC. Future developments From April 2014 the final groups of specialist PAYE schemes will move on to RTI with only care and support employers and the digitally excluded allowed to file quarterly returns on paper. OVERPAYMENTS There are two key elements to any overpayment of pay: the gross overpayment and the net (gross less statutory and any other deductions). As the element recoverable in law is the net overpayment received by the employee (British Railways Board v Franklin (Court of Appeal 1991)), it is important that all payroll transactions are adjusted (by reversal of the payment process) leaving the net overpayment as the only item of pay remaining outstanding. Where the overpayment is the result of processing two or more pay periods, a separate recalculation should be made for each pay period involved, and the cumulative values of each element of pay should be reversed. No printing, copying r reproduction permitted. Where overpayment occurs after a tax year-end (or more than one) the transactions within each tax year should be separately calculated and adjusted. This is to ensure that the cumulative elements within each tax year of tax, National Insurance etc. correctly reflect the statutory liabilities due. Recovery Before taking steps to recover the net overpayment outstanding, a decision will have to be made about how it can be done or if the amount should be cleared from the accounts (written off). In all cases it is important that agreement to recover a net overpayment is reached with the employee
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