Repayment of PAYE made to employer

Hi, One of staff has paid too much PAYE for the grossed up salary and he instructed to get repaid to the employer on his self assessment. Does the employer need to report it to HMRC via payroll? How it should be treated? His employment contract is net fixed salary amount. Thank you.

Hi Mike6220,

If an individual has paid too much PAYE but you have reported the correct salary to HMRC then the employer wouldnt change anything. It may be the case that this can happen if the individual received a large payment in one pay period. If this is the case they can contact personal tax on 0300 200 3300 to check if they can claim the tax back Thank you.

Hi HMRC Admin, Thank you for your reply. The employer doesn't need to do anything then. Does the employer need to process the refund received in the bank account as other income? Thank you for your help.

Hi,

No, the money would most likely be refunded to the individual directly by HMRC.

Thank you.

Hi HMRC Admin, Thank you for your reply. The individual refused to receive the refund due to the net salary pay contract. That's why the employer received it. How to process in this case? Thank you for your help.

Hi,

You will need to contact our Employers team to discuss this is in more detail.

Employers: general enquiries

Thank you.