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
- Taxfiler - SA100 - More efficient? 642 5
- See you all on the other side 692 6
- 12Pay 458 2
- dividends 611 2
- R&D 318 1
- Quarterly Reporting - The Logistics 1,181 17
- Auto enrolment contribution rates 440 3
- How long are you waiting for appeal reply 415 4
- Borrowing money to loan to company 373 1
- Mother as Guarantor for Son's mortgage 545 5
- Seeking a tax case 642 9
- When do we qualify for state pension? 505 4
- Companies house strike off 550 3
- Tax treatment of alterations to property 429 2
- Moving to the cloud 745 9
- Iris open space/doc exchange for SATRs 216 2
- How much to charge for payroll? 904 16
- Unincorporated charity transfer to CIO 210 4
- BTC vs Digita 1,092 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 501 4
- HMRC Joint Filing 562
- Capital Contribution towards a company car 420
- Capital Reduction & Impact on EIS Shares 373
- IRIS and FRS 102 354
- Capitalising Finance Lease 327
- USA help 317
- National Minimum Wage issue on Directors joining a Workplace Pension 297
- Marginal rates of tax 293
- Dormant company accounts under FRS 102 293
- Class 2 NI 278