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
- Auto enrollment. What's the basis for contribution ? 344 8
- National Living Wage: creating jobs or unemployment? 136 3
- Contracting, Subcontracting and Agency Worker Regs 214 3
- HMRC CT600 TOOL 174 2
- Company Van 298 8
- VAT underpayment 108 4
- Shortening an Accounting Reference Date 947 19
- Sage Drive Queue.dta file lock out 389 10
- Connected person and properties 178 4
- Business only use of company car 1,610 35
- cash basis 140 1
- Restoring a Ltd company which had been struck off 324 8
- question 294 2
- Do your DIY clients ever get their books right ? 727 13
- Overlap profits 422 14
- How do I correct a previous accountants major mistake on PAYE/SA? 833 11
- How best to split income on a Buy To Let - married. How do you decide beneficial ownership 1,352 12
- HMRC Security Deposit 485 12
- Invoicing for monthly clients 398 7
- Company investment 884 9
- RTI Rollback to delete incorrect data 389
- Any thoughts on Capium? 357
- Motor Traders Assistant Bookkeeping Programme queries 279
- Tracesmart/Lexis Nexis AML software? Any opinions? 254
- Continuity of practice-ACCA 242
- French ConnectionUK 192
- Recommended International mobile phone coverage and costs? 183
- Fundraising for friend - minimise tax? 177
- Can anyone explain Indian Minimum Alternate Tax 175
- APN's 163