New employer tax refund question

[scabbyjoe]

Hi, I am new here.

I am a new employer and my only employee used to work for Asda who had her on a 0 tax code for some reason (it was her only job) so she has overpaid tax - she does not earn enough with me to be paying tax but she does pay NI so I submit via the Basic Tools app. I have send off the P45 and the form P9(T) has come back and she is a due a £900 refund. To be honest, I thought they would give her the refund because when I registered her as working with me they automatically refunded her for 2014/15.

I am assuming that once I enter the details onto the Basic Tools and submit it that it will generate a refund being due to her and I will have to pay her this money - problem is, I do not have this money to give her at this time of year because it is so quiet and has been for the last 4 months really. I am making enough to cover costs, just, but I don't have this £900 spare.

I assume that HMRC will pay this money back to me but how do I get the money from them? When I pay them NIC's I have to go via my bank and make a payment so they do not have my bank details, so I am not sure how I get a refund and how long it takes. Does anyone know?

Can I generate the refund 'on screen', get the refund from HMRC and then pay it to my employee in her next pay cheque? As it stands she did not know she had even paid too much and did not understand that she should not have been paying tax so it's not like she is waiting for it so if I can do that it would be helpful - but it's probably again the rules. I don't want to get in trouble over so I guess if it comes to it I will drop into my overdraft for a bit. I am just concerned that if I do this it might be months before HMRC pay me back.

Could someone offer me some advice please. Thank you.

[jpcentral]

You can apply to HMRC for funding to cover the refund.There is an online form to complete at https://www.gov.uk/payroll-funding

You generally receive the funding very quickly. I think the last time we applied for one of our clients it only took about three days. The money goes straight into your bank and you declare that you received it as part of your submission. There should be a place to make the entry in your software.

[TAKY]

Hi !

i ahve the same problem. I am also due a refund for my employee. BUt i don't know how to claim the refund from HMRC.

Could you guide me the steps to do that?

Many Thanks

[bd6759]

Did you try google?

https://www.gov.uk/payroll-funding