An employee started during June 2015-16 and we thought he had other work so used code BR. We then received a Tax Notification from HMRC sent to us (the employer) of 298T shortly after he started, with Nil prev. Pay and Nil Tax.
Now, in December, HMRC have sent a revised coding of 1060L cumulative, Nil in the box for Previous Pay and Previous Tax
This change of coding will result in a refund to the employee of £1400 on Tax Week 45. He has only earned £9630 this tax year to TW44.
We can see this tax refund is correct.
My question is: going back in time I thought there was a ceiling above which Employers had to contact HMRC to confirm a refund to an employee.
Is this still the case or can we just go ahead and make the refund? I have tried getting through to Hmrc but just held in the everlasting queue.
Thanks
Replies (3)
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Ceiling
I seem to recall something from many years ago about a £250 limit, but that was for tax refund to a new employee, i.e. refund of tax that you hadn't deducted. In your case, you have deducted the tax and have then been told by HMRC to rectify the situation so I would have no problem doing what they've told you.
£50
It used to be £50 !!
But that's for new employees. This isn't a new employee, it's an existing employee with a new code.
No problem ........
A bigger question is - do you need funding ?