Tax Deduction Card Query - Tax refund?

[eiregal]

This is the scenario - Month one, employee paid, let's say, €20 tax. Month 2, Cumulative Gross Tax is less than Cumulative Tax Credit so refund is due. Is it €20 that is refunded? Or is it the Tax Credit less the Gross Tax, which works out at about three times that amont? Presumably the employee is only refunded the amount of tax they paid in this first month??

 

[mirmick]

This is the scenario - Month one, employee paid, let's say, €20 tax. Month 2, Cumulative Gross Tax is less than Cumulative Tax Credit so refund is due. Is it €20 that is refunded? Or is it the Tax Credit less the Gross Tax, which works out at about three times that amont? Presumably the employee is only refunded the amount of tax they paid in this first month??

refund will be the tax paid amount. You cant get tax credits as a tax refund.

 

[BrenG]

Yes you only refund the tax actually deducted.

 

[eiregal]

Ok thanks. So if I did in fact over-refund this tax, do I now take it back so the result is that she only got refunded the tax paid in month 1?

 

[BrenG]

Exactly or you could arrange to rectify the position in the following month.

 

[eiregal]

I'm actually doing Month 3 now so will take back last month's overpayment. Thanks for your help.