LONDON, June 2026 —
Employers who believe they have overpaid their Pay As You Earn (PAYE) liabilities are being encouraged to review their records and seek refunds from HM Revenue & Customs (HMRC).

According to HMRC guidance, businesses may be entitled to a repayment if they have paid more tax than was due during the current or a previous tax year. Overpayments can arise for several reasons, including duplicate payments, reporting errors, incorrect calculations, or adjustments that were not reflected in payroll submissions.

Employers are advised to compare the amounts paid to HMRC with the liabilities recorded in their tax accounts to identify any discrepancies. Businesses may also discover overpayments linked to statutory payments, employee tax adjustments, or corrections made to previous payroll reports.

To submit a refund claim, employers must provide key information such as their PAYE reference number, business details, bank account information, the tax year involved, and an estimate of the amount overpaid. Claims can generally be made online, while alternative arrangements are available for those unable to use digital services.

HMRC said that claims will be reviewed before any repayment is authorised. Where outstanding tax liabilities exist, the department may offset any approved refund against those debts before releasing any remaining balance.

Payroll professionals have welcomed the reminder, noting that regular reconciliation of payroll records can help businesses avoid tying up cash unnecessarily and ensure tax obligations are accurately reported.

Experts recommend that employers maintain up-to-date payroll records and promptly investigate any differences between reported liabilities and payments made to HMRC.

For further information, businesses are encouraged to consult official HMRC guidance on PAYE overpayment refunds.