I took over a new payroll and April 2020 and jus been told that one of the employees has not had his AVC's deducted from pay. They weren't deducted because I didn't know! My liaison at the employer has confirmed they have paid it over to the pension provider every month but I now need to correct the payroll aas he hasn't had the tax relief under the net pay scheme. I'm just wondering how to do this? There appears to be a number of options;
1 Amend each month April to January. February is correct
2 Adjust for the incorrect moths in March but he won't have sufficient pay to deduct 10 months of AVCs
3 Adjust for the 10 months over the next tax year 2021/22
4 Claim the relief via his Self Assessment TAx Return which we also do
Any thoughts please?
Replies (2)
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Not having made the deductions is a bit more fundamental than missing out on the tax relief.
I suggest it's firstly a conversation with the employer about whether they will insist on collecting the missing deductions and then with the employee about how they want to pay.