Payroo - tax refund questions

[ceeci]

Hi

We run a small company with 2 directors. We pay PAYE using payroo.com.

In August we could only pay ourselves a small amount, as business is quiet in this month, and as a result, payroo calculated a tax refund (our net pay was higher than our basis pay) for each person.

As we have already paid the tax directly to HMRC will the company get a refund at the end of the tax year, as the refund has been given to each director already?

Any advice would be great and sorry for my ignorance on these matters. Should probably book onto a PAYE course!

Thanks!

Cecilie

 

[MyAccountantOnline]

Hi

We run a small company with 2 directors. We pay PAYE using payroo.com.

In August we could only pay ourselves a small amount, as business is quiet in this month, and as a result, payroo calculated a tax refund (our net pay was higher than our basis pay) for each person.

As we have already paid the tax directly to HMRC will the company get a refund at the end of the tax year, as the refund has been given to each director already?

Any advice would be great and sorry for my ignorance on these matters. Should probably book onto a PAYE course!

Thanks!

Cecilie

Hi Cecilie

You can set the refund due against the next months/quarters PAYE/NIC or apply for funding for the refund from HMRC.

If you are only running a payroll for two directors its a little unsual for a refund to arise if you are paying the most tax effiecient salaries.

 

[elaine@cheapaccounting]

If you need the money urgently then you can write to the tax office for a refund.

Can I ask - are you also the shareholders?

Do you have any other income?

Have a read of this on salary v dividends:

http://www.franklyaccounts.co.uk/fivesalary.php

and this post on directors salaries:

http://www.cheapaccounting.co.uk/blog/?p=683

 

[MyAccountantOnline]

If you do want to request the refund from HMRC rather than offset it against the next PAYE due have a read of page 22 of this HMRC guidance book it gives you all of the details you need - http://www.hmrc.gov.uk/helpsheets/e13.pdf