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Posted Thu, 27 Oct 2022 15:08:57 GMT by Alexis Brown
have just done a payroll run for a new employee and the payslip shows a PAYE refund (albeit small) for the first month. I must admit I have never seen a PAYE refund going through a payslip and just wanted to check that this was acceptable. I'm using HMRC Basic PAYE tools e so I presume it has been calculated okay. The net effect is that the employee has net pay which is greater than his gross pay (as the PAYE refund covers the NI due). Can anyone just assure me this is okay before I finalise and also confirm how I as the employer am reimbursed for a tax refund arising from employement with a previous employer?
Posted Fri, 28 Oct 2022 13:38:38 GMT by HMRC Admin 32
Hi,

Tax refunds may be calculated through your payroll and if so, you would pay this to the employee along with their wage.

The tax refund will reduce any other liability you are due to pay, however if you do not have any other liability, you can contact HMRC to claim a refund directly.  

Thank you.

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