Hi please can you advise me on the procedure for tax rebates with RTI?
My client has an employee who was on emergency tax due to a pension she was receiving so she was paying quite a lot of tax a month. I wrote to HMRC and requested a new tax code and after running the payroll yesterday she is showing a tax refund. Does the employer pay the tax rebate back to her? The employers HMRC payments are up to date and this month they are in credit.
Yes, the employer pays the tax rebate back to her, and recovers it against future payroll payments due HMRC.
Unless the amount is substantial, any year end credit it be rolled over to the following year. They now notify the employer (eventually) that they will do this with the credit.
