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
- Vat query - EU customer requesting invoice without charging vat 228 8
- Is this legal? 564 9
- Scams are not always obvious 586 16
- Market Value/Connected Persons 154 7
- Auto Enrolment, Payroll, Small Client Advice and what to charge? 569 16
- 100% FYA, do I have to cliam all of it in 1 year? 109 3
- Saying NO to a time wasters 1,964 23
- Cells from many sheets 104 2
- Taxation of rental income 138 4
- notice of consent by surrendering company group relief 126 6
- VAT on long lease in comercial property thathas opted to Tax 48 1
- Childcare vouchers 60 1
- Directors loan 1,385 9
- Expenses allowable against income from lodger 115 1
- New company formation and equity 154 3
- Previously dormant company now medium sized - does it need an audit? 111 1
- Tax planning, transferring BTL property to company 211 5
- Forming a Holding Company 153 2
- SAGE - Filtering Inactive Suppliers/Customers 98 1
- OMB contractor company making himself redundant 236 3
- New Fangled Penalties 1,038
- Moving away from CCH software 899
- Recruitment agencies 521
- QROP pension input amounts 409
- write off loan or loan to equity swap or both 361
- Deemed Employment Payment 340
- HMRC BENCHMARK EXPENSES 301
- Unused Losses and Post Cessation Receipts 297
- EIS relief on transferring shares to spouse 216
- fraud 199