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February 27, 2022
Question

Do you know why our company is having to pay employees there tax rebate?

  • February 27, 2022
  • 1 reply
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1 reply

February 27, 2022

Hello there, @jobliss633-hotma.

 

If your employees paid too much tax for the previous period, you may be able to get a tax rebate. The HMRC will be the one who'll pay the tax rebate, and you'll have to claim it.

 

After you claim it, you can then create an expense that shows this overpayment for your employee with HMRC assigned as a vendor. Here's how:

 

  1. Go to the +New button.
  2. Select Expense.
  3. Set the Payee as HMRC.
  4. Under the Category column, enter the liability account.
  5. Enter the overpayment amount, and set the VAT to No VAT.
  6. Hit Save and close.

 

However, since you'll need clarification on why your company would pay it, I'd recommend consulting your tax advisor for further assistance with this matter. You can also contact HMRC to verify this scenario.

 

To learn more about adding or customising payroll deductions in QuickBooks Online, you can check this article: Add or customise deductions in QuickBooks Online Payroll.

 

Feel free to comment below if you have other questions. I'll get back to you as soon as possible, jobliss633-hotma