I have already submitted a P35 along with P14s for a client's year end. However, on double checking amounts actually paid (yes I know I should have done this before submitting!) I found that one of the employees has physically been paid £650 more during the tax year than I have actually recorded on the payroll. This was due to a couple of weeks being paid cash instead of the usual bacs payments, which I wasn't told about until later!
I have telephoned HMRC and they said I should go online and click on the "amend P14" link for the employee. This I have done, and it wants me to enter the difference in the various earnings for NIC and PAYE. Because the amount paid, £650, is the net amount and I hadn't recorded it in the payroll software, the only way I could work out what the difference should have been was to go back into the payroll software and enter the correct pay for the periods so that I could then work out the figures to put in the amendment boxes on the P14. Is this ok?
Also, after I've submitted the amended P14 (and written the required letter to HMRC) should I go back to the payroll software and alter it back to how it was originally, or leave it as it is now?
Hi Pauline I've replied on the other thread. I got a call before the 19th deadline from a new client who had a similar situation, said she had been doing the payroll for years and never had any problems till this one - she's now handed it over to me.
However, you should not alter it back as it would be wrong and would not be what had been submitted to HMRC.
If it results in your client owing HMRC they need to add 013 to their PE number on the reference when paying online otherwise it will go into the wrong year.
