Who is responsible for PAYE refunds?

Associate
Joined
11 Jun 2009
Posts
1,248
Just a quickie here, I think I'm right but I'd like to make sure.

I have a short term contract through a recruitment agency, paid by the hour via electronic timesheets.

Anyway, due to a bit of an issue on my part, I submitted 2 timesheets late, so I got paid for 3 weeks in one go. All good so far.

Now, their system automatically combined the 3 timesheets, then worked out my PAYE as if I got paid that amount of money per week. This meant that they treated some of the pay as if I was in the higher tax bracket, and charged 40% PAYE on it.

Now, I should definitely be on 20% because I am nowhere near the higher tax bracket.

I rang up payroll, and the rather unhelpful lady on the phone told me that there was nothing they can do and I have to reclaim it from HMRC when they send me my P60 in May.
Now, according to this they should just pay me back next pay date.
Is this as black and white as I see it?
They over-charged me, they should fix it, regardless of how their system worked it out. The lady on the phone seemed quite incredulous at the idea and said that any other agency would do it the same way.
 
Soldato
Joined
19 May 2004
Posts
3,841
PAYE is a self correcting system, you can earn more one week and less the next and it evens out, so long as the difference is not at the point of crossing into national insurance (this is a very low level) the net difference is 0.
 

ajf

ajf

Soldato
Joined
30 Oct 2006
Posts
3,044
Location
Worcestershire, UK
Well, HMRC certainly issue at least some PAYE refunds as I have just had one! Nice surprise too :)
Only small as I changed jobs but was taxed on health insurance I no longer have.

Would suggest you do give HMRC a ring. My experience has been they are pretty helpful and should at least point you in the right direction to get it sorted.
 
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