Paid too much !!

Paid too much !!

Didn't find your answer?

In November a client’s bookkeeper gave me their payroll changes for the month and said “Can you pay Mr X a net bonus of £5,000 as he has been paid an extra £5k net this month already” (ignoring RTI reporting of payments on time….!) so we grossed it up to around £8.5k and added it to the payroll – all good.

He has just come back and said “whoops” the £5k was not a bonus but was a short term loan that the employee has repaid – the bookkeeper is now panicking !

Question – How do I reverse this? I have tried entering an 8.5k deduction on Moneysoft but it wont let me as it is negative, the individual is on a W1/M1 code so even if we remove remuneration there is no tax refunded

Can I go back in and resubmit earlier periods – I would need to resubmit Nov, Dec and January I presume?

If anyone could give me a pointer that would be great!

Replies (3)

Please login or register to join the discussion.

Routemaster image
By tom123
10th Feb 2016 20:35

You need to roll back and re-process

Hi John,

You need to roll back and re-process. With Moneysoft, that is just a matter of opening up the periods.

When you re-submit, you need to set the appropriate flag with the message about why you are making the correction.

Put the correction through with the current code (you can't just change it) - and then get the employee to contact HMRC to request the code is changed. I find the online tool (google something like My Tax Code is Wrong and there is an online tool) tends to get quite a quick response. There is still time to get a new code for February or March payroll.

Whilst the tax code may not get corrected, ultimately that is only a code, and so if there is a refund due it will come in due course.

Not that that helps your employee at this time.

 

Thanks (1)
avatar
By mikeyban
10th Feb 2016 22:59

Or alternatively ... Unlock... Adjust and on the next filing it will put everything right... A lot simpler!

Thanks (2)
By John Webb
11th Feb 2016 07:07

Thank you both - easier than I thought !!

.

Thanks (0)