Net pay is higher than Gross Pay due to PAYE Refund

Hi, We have processed payroll for my new employee and included her opening balance of pay and taxes in the payroll. This has resulted in a negative PAYE amount. Could you please clarify whether I am liable to pay the PAYE refund amount to the new employee, considering it relates to her previous employment? Due to the PAYE refund, I need to pay my employee an amount higher than her gross pay. Is this correct? Thank you for your assistance.

Hi, if the employee has overpaid tax even from a previous employment you need to pay this to them, and report the actual paid figures on the FPS. When you pay your whole amount of tax on the EPS it will take into account this refund you have paid the employee.

It seems that the PAYE refund is related to the employee’s previous employment, so you might not be liable to pay it directly. However, if it affects the current payroll, the net pay can indeed be higher than the gross pay due to the refund. Typically, if the refund is being processed through your payroll system, it should be adjusted correctly, but it's always a good idea to confirm with the tax authorities or a payroll specialist to ensure compliance.

Hi team,
There are occasions were a change in tax code may generate a tax refund.
You would pay it and then a credit would be applied to your account which you can use to offset your future liabilities.
You can also make an advanced funding claim if this is not suitable.
You can find information on this by visiting Apply for financial help for an employee tax refund
Thank you.

In April, May & June I worked my last 3 months where it appears looking at my PAYE I was paying just under 10%. I was made redundant at the end of June where I was advised 11 months previously. I know redundancy isn't taxed but Holiday pay, PILON, Retention Bonus & pay in lieu of benefits is. This accounted for approx. £11K but my PAYE was £4K although YTD the Taxable figure was £17K. I then didn't work & was unaware I was entitled to Jobseekers allowance until weeks later where I got £504.25. Apparently I would be taxed on this they said. In November I started as a temp at Tesco & after 30 hours work I got paid nearly £1K due to PAYE -£515.60 being added. Then in December for 90 hours I got over £3K due to PAYE -£2428.15 being added. This is really confusing so will try & call in due course but in some ways this might be correct due to the redundancy package I paid too much tax? I don't want to spend money if it's not really mine ? What does anyone else think. Thanks for any helpful replies.