Payrun. Employee 0 hours, but £200 in PAYE tax to pay.

[locutus]

I was just sorting out payroll using Xero, and Xero is telling me that I have to deduct £200 from their wage despite them working 0 hours this month. They were previously on furlough.

 

[Newchodge]

Did you run payroll throughout their furlough period?

 

[locutus]

Did you run payroll throughout their furlough period?

I did so monthly, as that was the pay period.

 

[Newchodge]

I did so monthly, as that was the pay period.

Are you sure it is tax payment, not tax refund? If it is still an issue, check the tax code hasn't changed.

 

[locutus]

Are you sure it is tax payment, not tax refund? If it is still an issue, check the tax code hasn't changed.

Maybe you're right, it's a tax refund. It's saying:
Total Employee Taxes
-268.60

 

[Newchodge]

Maybe you're right, it's a tax refund. It's saying:
Total Employee Taxes
-268.60

That's because tax is cumulative. Previous months' tax assumed payment of a similar amount every month, April to March. As there is no payment this month too much tax was paid every previous month.

EDIT: If the business is not paying anyone, or will struggle with the refund, you can ask HMRC to advance it to you. Normally it would just reduce the total amount you pay to HMRC every month or quarter.

 

[StevenSniderZero]

It's kind of weird. I agree with the above comment that it looks like taxes. For example, we have WorkTime, and the time and date are correctly indicated.
However, Xero is supposed to be accurate in terms of dates and payments. Any software that deals with money should be accurate.

 

[Newchodge]

It's kind of weird. I agree with the above comment that it looks like taxes. For example, we have WorkTime, and the time and date are correctly indicated.
However, Xero is supposed to be accurate in terms of dates and payments. Any software that deals with money should be accurate.

It is accurate. Why do you think it is not?