RTI - wrong tax code used for employee

RTI - wrong tax code used for employee

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Hi

I have an employee who started in November 2014 and gave us a p45 with a week 1 1000L code on it. After a couple of weeks I received a P6 showing a cumulative 1000L code to be used, which I changed in my payroll software. However, I stupidly failed to include the YTD figures also on the P6. The employee has therefore been overpaid each week since then.

How should I correct this is in my payroll/next FPS? Do I go back and add the P6 YTD figures to the week in November it should've been added? Or do I add the P6 YTD figures to the current weeks pay?

Thanks.

Replies (2)

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Tom McClelland
By TomMcClelland
18th Feb 2015 22:52

Add the P6 ytd figures now...

What you need to be ready for is that the employee may get negative net pay as a result, which would have to be repaid by the employee or carried over as a future period attachment to earnings. If the employee can't afford to take nothing home next period you might need to consider a company loan to them (in the interests of workplace harmony) but you should be formally clear that any such loan must be repaid or it risks being treated as a net wages payment, to be grossed up.

Thanks (1)
RLI
By lionofludesch
19th Feb 2015 08:16

Agree with Tom

This is your mess, even though it's the employee's tax bill and you need to help him out to clear this debt.

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