Smarter accounting

PAYE refund – how to get one

25 September 2016, Charities, Companies, Employer

Getting blood out of a stone

The normal process for reclaiming overpaid PAYE to HMRC is to deduct the amount HMRC owes you from your next regular payment.  For this reason HMRC does not normally process an automatic PAYE refund.

PAYE refund by phone

Phoning HMRC can be a frustrating process as you are likely to be kept on hold for ages.  If you do get through, this can be the easiest way of sorting out a PAYE refund.  Make sure you have all your details to hand before contacting HMRC’s employer helpline.

PAYE refund by post

It can take months for HMRC to refund overpaid PAYE.  HMRC’s own website confirms this.  You will only get a refund if you are up to date with all your other taxes.  To request a PAYE refund from HMRC write to the following address:

National Insurance Contributions and Employers Office
HM Revenue and Customs

PAYE details you will need

Make sure you have all the following information to hand before contacting HMRC.  If you are writing to them, include the information in your letter.  If you call them, you will be kicked out of the system if any of the details are incorrect and they won’t tell you what you got wrong.  It is common for businesses to forget to change their address for PAYE.  Even if you have update your address for VAT or Corporation Tax, you still need to notify the PAYE department separately.

  • name and address of your business (check your online account to make sure the address is up to date)
  • your PAYE reference – this is in your employer registration letter from HMRC
  • your contact telephone number
  • how much you have overpaid for each tax year you’re claiming
  • the tax month you overpaid in (if possible)
  • why you overpaid – for each tax year you’re claiming
  • whether you’ve claimed this overpayment before

Include your bank details on your EPS

You are required to send an RTI report each time you pay staff.  The EPS report can include your bank details.  If you make sure your bank details are in an EPS and you submit the EPS even where no payments are to be made, HMRC will know what you are up to and they might even refund PAYE directly into your account.

Alterledger can sort out your PAYE refund

HMRC will only speak to the business owner or an authorised agent.  If you would like Alterledger to request a PAYE refund on your behalf and process all your payroll please use the contact form below.

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