Do Employers give Tax Refunds via PAYE?

jchannon

My wife was employed in a part time job. She then went on maternity leave and whilst on her maternity leave she was made redundant. She received her redundancy package and paid the tax etc via PAYE and received her P45.

After 11 months she found a Sunday job (minimum wage), worked there for 4 Sunday's and found another job.

Her first pay packet was for 3 of the 4 days and all seemed ok apart from the Tax column in her payslip. It read £-599.14. Her net pay was £718 for 3 days work.

I can only think of 2 reasons why; i)The employer has made a mistake ii) She was somehow entitled to a tax refund and the employer has given her that and then they will claim it back from the tax office.

Can anyone shed any light on this please?

Thanks

scheming_gypsy

Yep they do. If i've not had a contract for a period of time, the first payslip from my next one will have a tax readjustment to bring it back up to date.

cardiffgrad1

Yes, if its the same tax year, a tax refund can be done through PAYE. (I've had one.)
It's done so that people will end the year having paid the right tax.

jchannon

Wow! Any ideas why the refund then because she has paid the correct tax in her previous employment as far as I'm aware

LadyMissA

jchannon wrote: »

Wow! Any ideas why the refund then because she has paid the correct tax in her previous employment as far as I'm aware

Maybe in the tax year she was on maternity she paid too much and the tax office have sent an instruction to the employer currently with an adjustment to the tax code?

jchannon

Her maternity started Dec 2010 so if she was due a tax refund would that not have come in April 2011? From the replies it sounds like its ours and not a mistake but I just want to be sure before it gets spent

LadyMissA

jchannon wrote: »

Her maternity started Dec 2010 so if she was due a tax refund would that not have come in April 2011? From the replies it sounds like its ours and not a mistake but I just want to be sure before it gets spent

Well what was she doing between Dec 2010 and April 2011? How long was the maternity leave?

jchannon

It was 6 months full pay but she was made redundant at the end of it

chrisbur

Was a P45 given to the new employer, and if so when was it issued and what were the pay tax and tax code details?

jchannon

I'm not sure unfortunately. Will she have a copy and the new employer have a copy or is there only ever one copy that goes to the employer?

chrisbur

A P45 has three parts that an employee recieves. They are numbered 1A which the employee keeps, and 2 and 3 which are given to the new employer. It seems a bit quick for the tax office to have given details to the new employee and from what you have said this seems a lot of tax being rebated, so my concern was that a P45 from last year had been handed in and the employer had used these figures for this year.

As a check if it belongs to this year the payslip should have a taxable gross to date on it, does this add up to all taxable gross paid so far this year?