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
- Unfair charges for self assessment tax returns. Any recourse? 177 5
- 27,000 Really? 1,159 38
- What are options for non CA firm 2,841 60
- Legal title not in the company name 798 23
- Why would they want his purchase invoices?? 348 4
- Sage valuing foreign bank balances 315 8
- Opening Balances 209 2
- Awkward insolvency practitioner 592 7
- Tax Credits for Self Employed 125 1
- FRS12 Redundancy and notice period provision 96 1
- This is getting boring 625 12
- Using profits from Ltd company as start up funds for new venture 269 7
- pension paid by company? 126 3
- inheritance tax 431 12
- pretty multi rainbow -coloured client spreadsheets 352 9
- Sage 50 re-key - VAT problem 231 4
- State pension 304 3
- Accountancy Career 150 1
- CIC Company 659 13
- Exactly which business miles can I claim from my employer? 1,823 22
- Property exchange - 8-year legal delay following fall-out 642
- Cancelled 396
- SAGE Payroll Data for Import to MS Dynamics AX 355
- Cancelled 338
- Have you staged yet for auto enrolment? 310
- Probiz 306
- Free-standing washing machine - unfurnished lettings 280
- How not to compose an email 269
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 259
- Phishing emails purporting to be from CIPFA? 224