Can anyone tell me if I'm right in what I'm thinking please.
One company I run the payroll for, say for instance a member of staff is going on holiday for a week from 15th July to 21st July. The week before for the week ending the 14th July, the employer will tell me to run one weeks full pay plus one weeks holiday pay in the same week. Then for the week ending the 21st July she tells me to run a 0 week for the tax rebate.
Her staff think this is great getting this 'free money', however I've tried to explain that the £37 tax rebate will have been taken from them in tax the week before for running the double week and its just balancing out. And that over the course of the year it doesn't matter how you try to wangle it by putting double weeks and 0 weeks through, the system will always calculate the right amount of tax and NI based on what they earn for the year and their tax code. So although you get a tax rebate one week its never really 'your money'.
Also, her employees ring me not their employer saying they've been taxed too much, or their tax code is wrong, or their net pay is not enough
So although you get a tax rebate one week its never really 'your money'.
