Large PAYE tax refund to Employee

Large PAYE tax refund to Employee

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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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JCACE
By jcace
05th Feb 2016 13:08

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.

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RLI
By lionofludesch
05th Feb 2016 13:47

£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 ?

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By Jeh1
05th Feb 2016 17:40

Thanks very much we will repay the employee on his next pay run.
No we don't need funding, our monthly PAYE payment is greater so it is not an issue . Thanks for pointing it out though.

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