Mistake with payroll and no-one can help

Dazed_and_confused

When you do your self assessment for 2018/19 there will be a very obvious discrepancy between your self assessment and your company's payroll records. The HMRC computers will almost certainly pick this up and place both you and the company on their lists of potential Enquiries

Whilst I would agree with the bit in bold I don't know HMRC can possibly pick up on what information is held on the companies payroll records?

An employer does not send HMRC information about what other employers (in this case really a non existent one) have done so apart from the op's own contact with HMRC, which seems to have just confused them, how would they know about the fictitious £1,000 (to quote the op's figure).

Robert_McGeddon

There is not a problem. It will be ironed out when you complete self assessment (if you submit the correct figures).

I echo this.

Most of the other recent posts are sensible too.

It may help to be aware that the PAYE scheme and mainstream income tax reporting/liability are not really connected. PAYE is set up to collect tax during a tax year based on decent estimates of other income/expenses as well as current income from employment. When you do an income tax return after the tax year finishes the figures you enter override what has happened before (and will become the basis for the next tax year's notice of coding.)

There is a minor glitch in that your P45 probably incorporates the £1,000 in YTD income. So would continue to show up if you took up another employment in the same tax year. If it were me I'd live with it and sort it all out in the tax return.

semma19

Not sure why it 'doesn't make sense' that I left the company as an employee but stayed as a director. Of course I got a P45. And actually it does have the correct pay year to date for that particular employment. The rogue £1,000 as stated above was entered as previous pay for previous employment thar doesn't exist... So perhaps I am all squared...

sheramber

You say you noticed the mistake when you issued yourself a P45.
What was on the P45 that highlighted the error?

Was the '£1000 figure included on the P45?

semma19

I noticed the mistake on a section on FreeAgent that had 'year to date', but not on the P45 itself. I just noticed it at the same time as relieving myself of employment.

Dazed_and_confused

So the only place you can actually see this is on your own payroll software, it's not even on the P45 you (the employer) issued to yourself (the employee).

I think you should maybe print off this thread and file it somewhere safe to refer back to in the highly unlikely event this resurfaces and causes an actual problem some time in the future.