Adjusting ni / tax

clarisse Registered Posts: 8 Regular contributor ⭐ 😼 ⭐
Hi there,

is there anyone to help on this matter?

Staff(leavers) were overpaid in Mar 2013, ie paid full month's salary, due to receiving data after payroll had been run.

Received repayments from the leavers ( net figure) in Apr, updated the system with the returned payment and re-adjusted the NI/TAX to show nil net pay in May 13, but the year to date now shows a minus figure in .

We have tried to contact HMRC, but told will respond in 72hrs. At the moment whilst performing the May's payroll, the quality standard validation report checks, error message states 'invalid taxable pay is not allowed to be negative.

Please could someone advise how would you correct reversals from the previous tax year?




  • Rozzi Rainbow
    Rozzi Rainbow Registered Posts: 465
    So these people left in 2012-13 and are not to receive any more payments? I wouldn't process anything on the payroll for 2013-14 as it doesn't affect this year (hence why you have negative YTD errors). I would re-process March's payslips to show the correct net amount (what they were first paid less what they have refunded). You should be able to just reprocess March for these people only, and not have to worry about re-processing March and April for those who have not been affected.

    Have you filed the 2012-13 Year End yet? If so, you will have to amend the P14s and P35. You used to only be able to do this direct through the HMRC site, not through third party software. You had to only show the adjustment to the figures, not the new figures, so you would just enter the deductions from gross pay, tax and NI to make the figures correct.

    Hope this helps.
  • Janej
    Janej Registered Posts: 50 💫 🐯 💫
    Hi Clarisse
    I think the problem is that you are dealing with 2 different tax years
    Have you submitted your year end figures for 2012/13 yet? If not then I think you will need to adjust the final pay period (March 13) to show the amount that was supposed to be paid to the leavers so that the year to date figures are correct for that year. If you have already filed your year end then you will have to advise HMRC that the year end figures are incorrect.
    I am assuming that you didnt declare any pay for them in April and tried to correct the figures in May, if I am reading this right, so April is correct. You will need to just run the payroll for May as normal ignoring the repayments as they were for the tax year 2012/13.
    Hopefully HMRC will get around to ringing you back soon.
  • Shahid
    Shahid Registered Posts: 2 New contributor 🐸

    If you have not submitted P35, P14's yet, then;

    simply recalculating March 2013 for those Leaver's Pay will adjust the figures.

    If you have submitted P35, P14's, then;

    an amendment to the P35 and P14's will be required. Send HMRC amended P35 (on the whole) and P14's (for the affected employees) and reconcile the figures.

    I assume Leaver's don't have any payments due in 2013-14, therefore, do not put repayments into payroll again (they already have left).

    Hope it makes clear.
  • clarisse
    clarisse Registered Posts: 8 Regular contributor ⭐ 😼 ⭐
    thanks all for your advice.

    Still no contact from HMRC.

    The Senior Payroll has confirmed P14/35 filed. Apparently whilst completing the standard quality checks this highlighted the negative tax value, therefore the payroll provider removed this info in order for the FPS to be sent.

    the payslip sent to those leavers with the returned pyt/ negative year to date (nil payslip) etc will be incorrect along with the P60's.

    Even though there is no payment due to these leavers in 2013/14, how would you show the repayments (adjustments for 12/13) through the system?

    Apologies for having to ask this, i inherited the overpayments , (Sept 12) and been training in payroll on an adhoc basis

    regards C
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