Recently a client of mine had an employee who was paid weekly, above the threshold, and therefore had to pay tax as normal with a payment due to HMRC every week.
Last week the employee worked a lot less hours, paid no tax, and in-fact received a re-payment of £12.00 odd, which my client paid to the employee.
The employee worked his normal hours this week, above threshold and therefore a payment is due to HMRC again.
How do I explain to my client in layman terms that this week the she cannot deduct the rebate paid last week off what is actually due to HMRC this week???
"A taxpayer can only get back tax which he has paid. As the net payable to HMRC has all been deducted from the employees it cannot possibly stay in the employer's bank account."
