Paye refund - help

[prozak]

Hi ALL.

OK. So I've set up myself and my wife in payroo and entered our p45 details from previous employers.

I am not paying either of us for this tax year.

However, I decided to do a pay run - paying both of us £0.

Payroo has given me a £216 refund and my wife £108.

If I process this pay, will HMRC pay a refund?

IS there any claim I need to do?

Or should I just leave well enough alone?

Bit confused over this one.....

[prozak]

I mean it does make sense as we have been taxed at a full year rate.. and are not now working the full year....

HOwever, payroo looks like it is suggesting for me to PAY each of us and get it back from HMRC?

Still confused....

[badger7579]

You're confused???

[xoggoth]

Not familiar with it but as it is accredited sure it must give the right results if you put the right figures in - tax code, salary, tax and NI paid to date. As it also appears to be an e-filing system, it also presumably sends the right data to HMRC at year end, that's when it really matters

PAYE tax (NI similar for directors) is normally done by averaging the tax free annual allowance over the year so if you have not worked the full year you will have overpaid tax and should get some refund.

If in doubt HMRC have free calculators:

HM Revenue & Customs: PAYE Tax calculator
http://www.hmrc.gov.uk/calcs/nice.htm

[Sockpuppet]

Yes, tax refunds you effectively claim back from the govt.

You can do it this way you just fill out the normal PAYE paperwork with the refund box filled in or the easiest way to do it is probably to just to a self assessment at the end of the tax year (as you'll have to do anyway).

Less hassle and paperwork on your part.

[prozak]

OK thanks all.

I did run my gross pay through a calculator and it seems if that Gross Pay is for a full year then I have paid 400 ish too much PAYE.

I'm gonna run the PAYE months for this year as planned - i.e. £0 pay... and see what happens....

I assume the Employer (my LTD) gives the two employess their cash and HMRC send the Employer a PAYE refund. ......

In terms of the accounting side of things. I think it is basically something like.

PAYE Payable dr. 200
CASH AT BANK cr 200

Then the opposite when HMRC repay me?

For me this is another step in there as I'd probably cr Wages Payable and then pay the wages at a later date......

Obviously I am dr a liability account in the above.... I guess I could put it in an asset account such as Debtors or something......

Interesting one (well interesting for me anyway)

[prozak]

bump...

no further help or insight by anyone?

Thanks.

[Sockpuppet]

I'm telling you its easier just to do a self assessment. Your going to have to do one anyway as your a director. You're just creating paperwork for yourself.