Payrolling benefit error

Hello, We have an employee who has ended up overpaying their Private medical benefit for the 2023/24 tax year, the benefit is a payroll benefit. Unfortunately that employee has also left the business so there are no payroll runs within the current tax year to correct the issue. How would we correct the issue?

Hi,

When a benefit is payrolled the annual charge should be split across the year for the employee as per their pay frequency, for example, if monthly paid they'll be taxed on 1/12 of the annual charge through payroll.  

When they leave, they would have only been taxed on the benefit up to the point of leaving. As the employee has left you are unable to correct this.  

You will need to provided the employee details of why they've been over taxed and the employee would need to raise this with HMRC to see about claiming back any overpaid tax they may have had during the year.

Thank you.