We took advantage of the Employment Allowance for NI part way through 2014-15 year and now have an overpayment balance at HMRC on our PAYE account of over £300.
This came about as we are using the HMRC Basis PAYE tools and having ticked the employment allowance box part way through the tax year the software doesn't seem to take into account the payments that had already been made when calculating the "amount due to HMRC", so we just carried on paying the amounts Basic PAYE tools was showing each month (now lower as no employer NI), but this still left the employer NI paid earlier in the year as an overpayment.
Just starting 2015-16 year have run first month payroll using Basic PAYE tools, but at same time I checked account status on HMRC site and this shows the overpayment with a simple note stating "Please adjust your future payments".
I have tried unsuccessfully to call HMRC (gave up after 30 minutes on hold), as I assume we just file our RTI and then don't send payment to HMRC now until that overpayment account balance is used up, but wanted to check if guys here think that is correct, or will HMRC send a cheque for the overpayment and should we therefore keep sending NI/PAYE payments according to Basic PAYE tools calculations??
Also question then would be if we don't send payments to HMRC to use up this overpayment balance over coming months, how should I show this in accounts?
A bit beyond my understanding this one, as guess this is a refund on employer NI, but how do I get this into correct account/nominal?
At a loss on how to post to refund all employer NI paid last tax year and then use that up over coming months to return to normal?
