How to correct for previous overpayments to HMRC

If you have overpaid HMRC in a previous payroll period, you may need to amend your payment to them in the next period to use this credit.

Let’s say that the amount due to HMRC from your current pay period is £2,884.57, and your previous overpayment to HMRC was £402.13. You therefore need to pay HMRC the difference (“net amount”) of £2,482.44. The steps below will guide you through this process.

Adding transactions to ExpensePlus (before payment)

In this case, as well as uploading your usual payroll data to the payroll upload module, you should add a separate invoice to pay with HMRC as the supplier and enter as a negative amount the overpayment to HMRC to be deducted from the next payment to HMRC. Process this in the usual way through the receipt check screen and approval screen (if applicable) in ExpensePlus, and this will then appear on the payments screen alongside the usual payment to HMRC.

Paying HMRC

When making the payment to HMRC, set up a payment for the net amount due to HMRC (i.e. the amount due to HMRC from your current payroll period less the overpayment/credit amount). Tick both the payments due to HMRC in the payments screen (you will have made a single payment combining them both). If you have dual bank signatories, you’ll need to instruct the person authorising payments to do this too.

Bank matching the payment to HMRC

When your bank transactions are imported/uploaded, you’ll have one payment to HMRC for the net amount in the left-hand table, and two payments to HMRC in the right-hand table.

Tick the HMRC bank payment in the left-hand table, and the two payments in the right-hand table, and these will change colour to green.

You can then match these together in the usual way by pressing the tick button to the right-hand side of the screen.

If this does not work, it’s possible you calculated the net amount wrongly when paying HMRC.

To help you better understand the Payroll module, please visit the module overview page.