Reclaiming overpaid tax

[Silverage]

My daughter got a job over Christmas working weekends at Debenhams. They’ve made a hash of her pay for two months now and given her an emergency tax code and paid income tax on her money when she shouldn’t have been paying any (she’s 17 and this is the only paid work she has done all year and it will be less than £1000).

Am I correct in thinking she’ll have to claim this back from HMRC as Debenhams won’t be able to adjust it in her future pay?

[Countdown]

Silverage said:

My daughter got a job over Christmas working weekends at Debenhams. They’ve made a hash of her pay for two months now and given her an emergency tax code and paid income tax on her money when she shouldn’t have been paying any (she’s 17 and this is the only paid work she has done all year and it will be less than £1000).

Am I correct in thinking she’ll have to claim this back from HMRC as Debenhams won’t be able to adjust it in her future pay?

if she's still working for them then yes they can (fix it). She needs to complete the attached and hand it in to her Payroll Dept. They will then put her on a Week 1 / Month 1 basis.

https://www.gov.uk/government/uploads/system/uploa...

If she's left then she'll have to claim it back from HMRC after 31st March.

[Silverage]

She’s got another couple of weeks to go and one more pay packet at the end of next month.

How does that form enable Debenhams to claim back the tax they have paid over and give it back to my daughter? Do they offset it against tax they are paying for other employees?

[Countdown]

Yes.

It authorises payroll to amend her tax code. When the payroll system processes her monthly pay it works out the cumulative tax she should have paid was zero, realise that she has already paid £X, and give her a refund .

This will be recovered from Debenhams monthly gross tax/NI payment to HMRC

[Silverage]

Perfect. Thanks for that. I’ll print out that form and pass it on to her.