PAYE calculation error - post year end
An employee discovers, after all employer year end returns have been filed, that the amount deducted for NIC from his pay is excessive in law. Which of the following statements is/are correct?
1) As it was the employer's error, the employee's only redress is to apply for the shortfall from the employer, who in turn then has to attempt to recover from HMRC by an amendment to annual PAYE return.
2) Despite that it was the employer's error, as annual returns have been filed, the employee's only redress is to HMRC who must refund
3) The employee has a choice regarding to whom to apply for the refund, but whichever route is chosen the other party is obliged to stump up.
4) There is no formal mechanism in law for the employee to apply direct to HMRC for the refund but by concession HMRC will (always/usually/offten/sometimes on a whim, delete as applicable) honour the claim.
Finally, does your answer to the above vary if it was income tax rather than NIC? In my experience HMRC will normally accept that PAYE income tax if duly paid albeit incorrectly calculated will generally be accepted as a (potentially repayable) credit against the employee's income tax liability. But is that just by concession?
With kind regards
- Lunatics in charge of the asylum - Bluestone 573 1
- Accounting for Film Rights 43 2
- Limited Company expenses 71 4
- client issues 747 5
- Is an ex-gratia payment to a company taxable 88 4
- Why .... 265 5
- Freehold Property Depreciation 245 10
- UK taxation of income from property in Cyprus 70 1
- Leaving the Flat Rate Scheme 63 2
- Pylon compensation - what am I missing? 130 2
- Claiming VAT without invoice 66 2
- Sell business after leaving country 438 13
- Tiwan contractor 127 3
- Rental Income 75 2
- Auto Enrolment specialist service provider 155 2
- Charity accounting 137 4
- Auto enrolement and PAYE 115 1
- VAT - E-commerce site (middle man only) - like Not on the high street 58 1
- Two questions re client meetings and TR Fees 601 10
- Lack of new PAYE Coding Notices issued 304 4
- Possible Partnership? 564
- Tax and accounting treatment on long lease granted from freehold 489
- New Fangled Penalties 366
- Clubs and Taxable Income 302
- Purchase of property freehold - capitalisation of costs 281
- Loans to other companies 226
- Closed PAYE schemes and auto enrolment 218
- Lenovo – Superfish & Komodia – is your PC vulnerable 189
- Outsource Data Entry 183
- Moving away from CCH software 159