PAYE Question

DoraExplora

Hi, question re an employee. I employed a new girl and for her first paycheck i put her on normal credits and cut off, im seding off the Form 12a now. when her credits are applied how does she then get her tax back, she is 18?

Cordner

Hi,

If this is her first job, or she has not provided a P45, then you should have started her on emergency tax, not normal tax credits. When you recieve her tax credits certificate, and enter it on your payroll system, it should automatically refund any overpaid tax.

Regardless of the above, anyone on 'normal' tax credits is not due any tax back. Unless she only works a few months of the year, in which case she can claim the back after she leaves the employment, by contacting her local tax office with her P45 in hand.

Ticktactoe

Just to note, emergency tax is worked out by the following:

First 1 to 4 weeks - Week 1 standard credits and rateband
5 weeks to 8 weeks - No credits but rateband is given
9 weeks onwards - No credits or rateband so all is taxed @ 41%

So in theory you were correct putting her on a week one basis. When revenue send out the P2C or TDC (with details of the girls credits, rateband and previous pay and tax) you then enter in those details into the payroll system and the system will work out if she is due any tax back.

The only way you tax an employee @ 41% on their first week of employment is if they do not have a pps number or the pps number is not validated.