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Business founders/entrepreneurs

Employee tax rebates

2 replies

PowPurry · 28/11/2024 17:31

My accountant has dealt with everything from the get go, so admittedly I am not as clued up on the financials as I could be. I give them the hours, they send me the payslips and employers summary and I then pay my employees.

They have all had their tax codes changed.
I have three employees, one of which has recently left after only being with me for a month (for a well paid locum post - I don’t blame her!)
Last payroll, she only worked 6 hours.
Her final payslip includes a hefty rebate due to the tax code change.
The other employee is due even more.

My questions are, how come all of them have suddenly had a tax code change,
And, as great as she was, it pains me to pay out hundreds of pounds for six hours work, when she was with me for such a short time.

Btw I am not a huge company, I run a small business which is happily ticking over, I won’t struggle to pay it, but I’m not exactly raking it in.

You must think I’m stupid I know, how can this numpty be running a business, but if someone could explain what’s possibly happened, I would be grateful.

OP posts:
daisym00n · 28/11/2024 17:49

You will get the tax money back eventually in the form of a reduced PAYE payment to or refund from HMRC. I know you’ll need to make payment upfront but the rebate isn’t coming from you, it’s from HMRC. Employers collect (and refund) tax on behalf of HMRC through the PAYE system.

The tax code changes could be for any reason - offsetting tax overpayments from previous years, second jobs. It might be coincidence it’s all at the same time.

PowPurry · 28/11/2024 18:28

Thank you so much @daisym00n

Its a huge learning curve that’s for sure!

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