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hellojanewalksdo
November 12, 2022
Question

Hi, I've set up a new company to pay my one employee (me) as I previously overpaid tax the PAYE is a negative. Does HMRC refund this directly to my company

  • November 12, 2022
  • 1 reply
  • 0 views
I've just left full time employment and now am paying myself less so have overpaid tax in the year to date.
Once I've run payroll the company owes me £100 but with a negative tax the Payslip shows £116. 
Do I pay £116 to myself and HMRC refund into Company Bank Account
How does this work in practice and how frequently does it happen?

1 reply

K
Kevin_C
November 12, 2022

Hello, @hellojanewalksdo. I'll share some details to help you process the HMRC refund in QuickBooks Online (QBO).

 

Based on what you told me, I think you should contact HRMC support for more help with how to handle these tax overpayments.

 

In most cases, you can run payroll with the total amount of £116 or with a payroll of £100 and a separate record for the tax refund amount. However, it will still depend on how HMRC recommends you handle these overpaid taxes properly.

 

Additionally, you can check out this article to view various information on how to adjust the amounts on a return: VAT exceptions and reports in QuickBooks Online.

 

Feel free to leave a comment below if you have any other questions about recording tax overpayments in QBO. I'd be happy to answer them for you. Keep safe!

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