PAYE calc problem - advice please

PAYE calc problem - advice please

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We noticed at the 11the hour prior to paying the salaries that the cumulative tax totals were wrong due to a previous update problem. Decided to calculate this payroll by putting everyone on Month 1 as we decided the risk following staff being paid late was greatest.

We've been back and sorted the problem but some employees have been overpaid (net pay) on the current payroll but the amounts are tiny - £4 over 20 people. This is because the tax on the original pay run was underpaid - resulting in net pay being over.

The pay slips issued will be correct. Gross pay and paye/ni paid over to HMRC will be correct too and therefore P11s etc.

The only isssue as I see it is that our cash book is wrong and that all we need to do is journal out the error. We willl swallow the £4 difference!

Would like to check that we're OK as regards HMRC (and our audit!). I think we are - but I have a fluey head ...

GG

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By neiltonks
28th Mar 2008 16:25

Don't worry
With my pragmatic head on, I think even HMRC inspectors have better things to do than worry about a handful of people overpaid by 20p each :)

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