Tax due to HMRC shown as negative when trying to run payroll

Hello, I am having some trouble understanding what's showing up when I try to run payroll. I am trying to set up a payrun for an employee (myself, as I am also the director). The gross pay is £1,000 . However when I look at the summary for the payment it shows: gross pay £1,000, PAYE - £461.40, net pay £1,461.40. What does this mean? How much should I actually pay as salary and how much tax am I due HMRC? Thank you! Best, Cristiana

This maybe because your tax code is cumulative (if it does not have either M1 or W1 then it is cumulative) and that in this pay period you are actually due a tax refund from previous amounts paid. If you are generally paid £1k a month and have the standard tax code of 1257L then you would not expect to pay tax, but say in month 6 you were paid a bonus of £5k you would have been deducted tax, but the following months would then reduce your annual tax allowance thus giving a refund until the annual amounts in month 12 all balance. You can use the HMRC tax calculator if you are unsure http://payecalculator.hmrc.gov.uk/PAYE0.aspx. You will need your year to date figures from your previous payslips.

Hi Cristiana,

This could be tax refund being processed through the payroll, please contact our employers team to discuss in more detail.

Employers: general enquiries

Thank you.