Cancel a payroll just after setup

[contractor2011]

Hello accounting experts.

I recently have started a payroll to an employee. But unfortunately the employee decided to quit immediately. But i have accidentally paid him his first net salary. He has agreed to repay that amount .

Now if he repays that amount and i cancel his payroll is everything back to normal ? or i still need to pay the taxes for his one month salary?

What can i do correct this mistake?

Many thanks

[Sockpuppet]

Issue a second payslip reversing the payment and give him a P45 for Nil amount paid. I'd also write to HMRC and explain what has happened.

[Greg@CapitalCity]

Either

Looks like a straightforward admin error - you accidently paid a person you shouldn't have. If you made no payroll entries in your software, then get the money back and make no entries in your payroll software.

If you have already filed the ex-employees P45 (Part 3), then remember to issue the ex-employee with your own P45. If you have not yet filed their P45 (Part 3) then give it back to them - and if you never recd a P45 from them in the first place - like before - do nothing.