End of year return shows a repayment due

coojee

Hi

I'm sure someone will know the answer to this. I do the payroll for a local pre school but I'm not brilliant at payroll. One of the staff was on maternity in the last tax year and I got advanced funding for the SMP. I knew at the time that the amount of the funding wasn't the same as the SMP I was paying plus the compensation but as I'd given HMRC all the information I assumed they knew what they were doing. When I did the end of year return it showed that we'd overpaid tax and NI (because of the difference in the SMP and the advanced funding received) All I need to know is, do I need to separately reclaim this overpayment or will HMRC pick it up automatically and just repay it? Last years showed a small underpayment which was never claimed by them and I assumed they were ignoring it because it was only £1 something.

Thanks in advance

groundy

You need to apply in writing for the refund or carry it forward to offset against the current year PAYE.

Carrying it forward is the easiest method, presuming its not too much money. HMRC will not repay unless you request them to.

coojee

groundy wrote: »

You need to apply in writing for the refund or carry it forward to offset against the current year PAYE.

Carrying it forward is the easiest method, presuming its not too much money. HMRC will not repay unless you request them to.

Thanks Groundy. Do I need to tell them that I've deducted it from a future payment or is there something on next years P35 that I can fill in to explain it? Otherwise I'm going to end up with an underpayment for this year.

groundy

The overpayment in 11/12 should be included in your paid in year figure for 12/13, therefore no underpayment. They will automatically carry forward any overpayment from 11/12, so no need to inform them.