Taxes Consolidation Act 1997 section 787AG

Repayments to employer

Section 787AG sets out the tax treatment of repayments of automatic enrolment (AE) employer contributions where an overpayment has been made to the National Automatic Enrolment Retirement Savings Authority (NAERSA).

• Where an employer receives or becomes entitled to a repayment of overpaid AE contributions under section 64 of the Automatic Enrolment Retirement Savings System Act 2024, the repayment is charged to tax as a trading receipt of the employer's trade or undertaking.
• The repayment is treated as receivable on the date it becomes due, or on the last day on which the trade or undertaking is carried on by the employer, whichever is the earlier.
• This ensures that the tax deduction previously claimed by the employer in respect of the original contribution is effectively reversed to the extent of any overpayment that is refunded.
• Where the employer's business ceases before the repayment falls due, the repayment is brought into charge on the final day of trading rather than being lost from the tax net.