tax overpayment

[Yvonnel_b]

Can someone please help me with the following task:

It is the end of March. It has been noticed that wrong tax codes were used in Feb and tax was overdeducted from employees. The tax codes were correct on March. All employees have cumulative tax codes. Can they ask for tax overdeducted in Feb? How does employer get it back from HMRC?

Cheers

[hollers]

Hi Yvonne,

If the tax codes are cumulative, any overpayment from previous months would automatically be corrected when the correct code is used. The employer "gets it back" by paying less tax to HMRC for that particular month.
The time that the cumulative codes would not correct automatically is if the wrong code was used for Month 12. In this instance, the overpayment would be reported on the employees P14 and HMRC would deal with it.

Does this help?

Sharon

[Yvonnel_b]

Thank you - The simpliest answers do not always come first:)

[hollers]

No problem. I'm just so pleased I was able to help. And yes, sometimes the obvious answer seems to easy!

Sharon :)

[hollers]

I've done it again! Spelling mistake!!!!