Retroactive Overpayment and Recovery – 25C - Implementation Considerations

Summary:

I'm really pleased to see the new Retroactive Overpayment and Recovery for Earnings Elements feature in the 25C release. This looks like a meaningful step forward in managing overpayments more efficiently using standard functionality, particularly with the ability to offset recovery and track repayments over time.

That said, I'm eager to understand more—especially around how this feature aligns with UK legislation, where overpayment recovery should reflect the net amount (adjusted for tax and NI), not the gross. It’s not yet clear how this new functionality handles that distinction, if at all.

Also, since 25C lands during our UAT phase but before the PROD build, I'm unsure how to factor in the requirement that this applies only to