Payslip - Income tax refund

[stphnstevey]

Can I just check something on my payslips - I have been given an income tax refund.

The income tax refund appears to be:
- added to the Net Pay (ie salary x, Net Pay x+income tax refund)
- deducted from the Total Pay and Taxable Pay
- deducted from tax paid

So the Total Net Pay does not now equal the Total Pay and Taxable Pay

Is this correct?

Which figure do I put on my Self Assessment as my salary and tax paid?

[elainec100@cheapaccounting]

Which figure do I put on my Self Assessment as my salary and tax paid?

The figures from your P60

[stphnstevey]

And has the Income Tax refund been done correctly?

I tried searching but could not find anything on how to handle an icome tax refund in PAYE. Not quite sure why I am receiving one as it is only minor (about £16)

[Tom McClelland]

And has the Income Tax refund been done correctly?

I tried searching but could not find anything on how to handle an icome tax refund in PAYE. Not quite sure why I am receiving one as it is only minor (about £16)

As described it doesn't sound right. But without being able to see the payslip with the refund on, and the payslip before that one, I can't be sure that I'm not just misunderstanding your description.

Basically the refund should only affect tax (and net pay of course). It shouldn't affect taxable pay at all. "Total Pay" is a meaningless term so I cannot say if a tax refund should affect it or not.

[Tom McClelland]

I tried searching but could not find anything on how to handle an icome tax refund in PAYE. Not quite sure why I am receiving one as it is only minor (about £16)

To answer this specifically. The arithmetic of how to handle a tax refund is identical to the arithmetic of handling a tax payment, just with the opposite sign, that's all. But if a payslip has a deductions column typically a refund is still shown in that column, but with an "R" next to it.

[stphnstevey]

Thanks for that - it makes sense to look at it simply like that

Is this right:
Net Pay increasing makes sense as the tax has been refunded, so added to the Net - so I actually get something back!

I guess the reduction of the taxable pay causes the increase in Net Pay. And because it has been refunded, iI have payed less tax and tax paid is reduced.

Why would I have received a tax refund? - my tax code changed halfway through a tax year, is that most likely why?

[Tom McClelland]

Thanks for that - it makes sense to look at it simply like that

Is this right:
Net Pay increasing makes sense as the tax has been refunded, so added to the Net - so I actually get something back!

I guess the reduction of the taxable pay causes the increase in Net Pay. And because it has been refunded, iI have payed less tax and tax paid is reduced.

Why would I have received a tax refund? - my tax code changed halfway through a tax year, is that most likely why?
I don't get the red bit. Your taxable pay is your taxable pay. It is the wages that you've been paid that is subject to tax. A tax refund shouldn't affect it.

The answer to the blue question is, Yes, the most likely reason is a tax code change. Either that or your pay got reduced one month.

[stphnstevey]

Thanks then, I will wait to see what's on my P60 as Elaine mentioned then