SACM12160 - Overpayment relief: Dealing with claims
Source: gov.uk (2025-01-09)


Overpayment relief claims are sent to:

PAYE Self-AssessmentBX9 1AS

Overpayment Relief Claims are dealt with using our normal approach of 'process now, check later'.

Late claims

If the claim is late, you cannot use the Board's discretion to extend the time limit to make it but you may be able to use discretion to accept a late overpayment relief claim see guidance at SACM10035 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm10035). The late claim should not necessarily be accepted because the claimant only became aware of the overpayment or over-assessment after the time limit even if this was due to matters beyond their control.

Unsatisfactory claims

If the claim is not valid because it is not in the right form, see SACM12150 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12150), you should return it to the claimant explaining why it fails. If you do not have a valid claim there is no requirement to issue an enquiry notice in such circumstances.

When you need to open an enquiry – important considerations to make

If you have concerns regarding the overpayment relief claim or the quantum of the claim you must open an enquiry by giving notice in writing. Before opening an enquiry you must consider whether
- the claim is in time, see SACM12155 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12155). If not, it is a late claim. See above for what to do
- the person has overpaid or the assessment is excessive. If there is no overpayment or excessive assessment no relief is due
- the requirements for a valid claim, see SACM12050 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12050) and SACM12055 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12055), are met
- the claim is in the correct form, see SACM12150 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12150)
- the person is able to make or amend a self-assessment to correct the error instead of claiming overpayment relief, see SACM12080 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12080)
- one of the other exclusions listed in the legislation applies to the claim, see SACM12070 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12070), and
- you need to make a discovery assessment or amendment, see SACM12165 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12165).
Claims in the correct format and made in time – opening an enquiry

The general rules on claims in Schedule 1A TMA70 apply to relief for overpayments. This means that, where appropriate, you can enquire into them before giving any relief for the amount claimed. See SACM8000 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm8000) for further information on enquiry procedures, time limits, and so on.

Concluding an enquiry

If you enquire into an overpayment relief claim and decide that it is incorrect, you should issue a closure notice that amends the claim to arrive at the correct figure. This includes amending the claim to zero if none of the claim will be given effect to.

See 'Claim outsie a return' - SACM8055 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm8055)

Unless you are enquiring into a claim you must give effect to it.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Giving relief

Relief should be given either by the repayment of tax, see SAM110080 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam110080) to SAM110089 or COM53030 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com53030), or by discharge of the amount of tax which they believe they should not have paid, or should not be due. To give relief for Class 4 NIC overpayments, see SAM114046 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam114046). For companies, relief is given using COTAX, see COM53030 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com53030).

Claims by employers must be referred to TALA, see SACM12035 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm12035).