Accountant says I need to pay £2,000 for paye but I'll get that back?

Poshsalt

Hi,

Dont know if this is true its werid.

Have a company I've set up the paye pretty much on the last day, my accountant said because she needs my employee number which was recevied past the deadline I have to pay £2,000 but I'll get this back, its not a penalty.

Is this true sounds bit weird.

HMRC sent me what I owe which is £350, and £2,000 "income tax". The amount was £12,500 which was my salary.

My accountant said it would be paid back instantly too. Is that right?

Dazed_and_C0nfused

Sounds dubious.

I suspect part of the problem is that you are confusing yourself (an individual person) with the company (which is not you the individual).

So who is paying the £2k income tax and who is going to get it back?

Irrespective of the above it certainly won't be instant.

Poshsalt

Accountant said

You will pay around 2000 Income tax now as you don't have P45 with the last tax code. You will receive a new tax code from HRMC soon. They will refund you.

I set up emergency BR code, after HRMC change, I will ask for refund.

Dazed_and_C0nfused

This was taken from one of your other threads.  Not 100% sure exactly what you mean but it seems like you were being paid £12k in salary.

If so what tax code was being used on those payments?

company accounts are OCT-OCT, took out £12k.

Claimed HMRC paye for the £12k

Poshsalt

Dazed_and_C0nfused said:

This was taken from one of your other threads.  Not 100% sure exactly what you mean but it seems like you were being paid £12k in salary.

If so what tax code was being used on those payments?

company accounts are OCT-OCT, took out £12k.

Claimed HMRC paye for the £12k

Hi, we didnt have a tax code, so the accountant said to be an emergency one then they pay back the as a tax refund. I think it is true. I didnt have a tax code as I got the salary out last day of OCT>

Dazed_and_C0nfused

The emergency tax code is 1257L.

If this was operated on a non cumulative basis it would mean no tax would be deducted on the first £1048 paid each month

If you were paid £12k all in one month the tax due to be deducted would be a lot more than £2k

Just to be clear as well, HMRC do not make tax refunds in year in the circumstances you seem to be describing.

If your employer deducts £2,000 from you (the individual) in tax one month and a new tax code means that tax needs to be refunded the next month it is your employer who makes the refund when calculating your wages for the next month. 

The only time it would differ would be if the tax was deducted in the final month of the tax year.  In that case you (the individual) would get any refund due once you completed your Self Assessment return for the tax year in question, it wouldn't be included in the April wages payment as that is a different tax year.

Jeremy535897

My guess is that code 1257L was used for £12,000 paid in month 7, together with NI on an annual basis, assuming OP is a director. 

Poshsalt

Jeremy535897 said:

My guess is that code 1257L was used for £12,000 paid in month 7, together with NI on an annual basis, assuming OP is a director. 

yea think so, but does that mean i'll get that £2k back and when.

thanks for your rely

Dazed_and_C0nfused

If HMRC issue a cumulative tax code of 1257L then yes but it wouldn't all be refunded until your March payday.

And it would be refunded by your employers, not HMRC.