Tax Rebate

[vhadiant]

I have a tax rebate shown on my payslip this month. This is because for the first 3 months of the year I've been working under a brolly.

Now the accountant told me to take the money out from the company bank account. I'm a bit confused, should I do this? Because that means the company is paying me money that should really come from HMRC. Does that mean at the end of the year the corporation tax is offset by my tax rebate?

[Gonzo]

I have a tax rebate shown on my payslip this month. This is because for the first 3 months of the year I've been working under a brolly.

Now the accountant told me to take the money out from the company bank account. I'm a bit confused, should I do this? Because that means the company is paying me money that should really come from HMRC. Does that mean at the end of the year the corporation tax is offset by my tax rebate?

Presumably, your accountant is calculating your PAYE, which is designed to ensure that over the course of the tax year you pay the "correct" amount of tax for the salary that you have been paid, and so don't have to trouble HMRC for the refund. So it is plausible.

Usual disclaimer, IANAA, so check with yours!

[NotAllThere]

You owe a certain amount of tax. If you've overpaid that tax, your employer can make the deductions during the payroll run, until your actual tax liability is met.

Or, you can do your tax return, and wait for the payment from the tax man. I'd do the former myself, but each to their own.

btw - if you don't trust your accountant - get a new one.

[Sockpuppet]

I have a tax rebate shown on my payslip this month. This is because for the first 3 months of the year I've been working under a brolly.

Now the accountant told me to take the money out from the company bank account. I'm a bit confused, should I do this? Because that means the company is paying me money that should really come from HMRC. Does that mean at the end of the year the corporation tax is offset by my tax rebate?

Yes, take the money out.

I had this when I went from perm to min wage. Just pay yourself the money. If you are still "in credit" at the end of the year i.e. your still getting rebates back from HMRC then you need to fill in a form to get the money back.

[TheFaQQer]

You are paying for expert advice and guidance. Either listen to it, or find someone who's advice you believe and trust.

[XLMonkey]

The money should come from your company - every year your company has to send information to HMRC giving a summary of how much it paid you, and how much tax/NI it paid the government. The tax rebate comes out of this total (and if there is a tax overpayment, your company will get a cheque for the difference, plus interest, back from HMRC in July/August of next year).

[vhadiant]

The money should come from your company - every year your company has to send information to HMRC giving a summary of how much it paid you, and how much tax/NI it paid the government. The tax rebate comes out of this total (and if there is a tax overpayment, your company will get a cheque for the difference, plus interest, back from HMRC in July/August of next year).

Right thanks for clearing this up.