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
- Solicitors now, Accountants next 804 11
- Depression - HMRC penalties case won because of this illness. 519 19
- How come if you claim benefits you are not entitled to you either have to pay a 50% penalty or are sent to court and either fined or sent to prison (sometimes suspended) and end up with a criminal record. 683 13
- How do you find shareholders of a Cyprus Company ? 297 16
- Anyone using BTC Accounts Production yet? 83 2
- Personal pension 434 9
- Business rates consultancy 262 4
- Wrong tax code 163 6
- Benefit in Kind 245 5
- SELLING A PROPERTY at LOSS/PROFIT - CAP GAINS ALLOWANCE 78 2
- Am I getting Soft?? 267 10
- Accountancy practices - are you closed over Christmas or do you let your staff take it off? 1,055 31
- Deferred Tax 471 8
- Mutual Trading - Exempt CT Income - Do I need clearance? 206 1
- You know its over 485 6
- Co. limited by Guarantee now closed 243 1
- Foreign pension tax credit relief 142 1
- Petrol expenses for self-employed 234 3
- RTI and corrections to payroll 1,278 14
- Cocaine anyone? 627 10
- Hive up 510
- Accounting referance change & deficient accounts. 473
- corporate hierarchy 451
- Advice - 292
- Anyone had HMRC refusing to act on EPS database glitch? 237
- WWOOFers 230
- Art Gallery - Splitting a property between business and personal use 216
- Tax liabilities in USA for warehoused products 193
- The booking.com con 170
- UK State pension paid in NZ 163