Correct Employee Taxable Pay YTD and PAYE YTD figure for Prior Year (2023_2024)

Hello, If an incorrect figure of £40,000 taxable pay YTD has been reported to HMRC for 2023/24, along with a PAYE YTD figure of £5,000, and we need to correct this on an amended FPS, we would adjust the taxable pay YTD to £35,000. However, we would not adjust the PAYE YTD figure, as HMRC handles any refunds or charges from a prior year. Therefore, the PAYE YTD will remain at £5,000. Is this correct? Kind regards, Oto Solomon

Hi,
You would correct both however most software would amend the tax and NIC etc when you change the YTD income.
Thank you.

If an employee (EE) is due a tax and National Insurance (NI) refund from a prior tax year and we submit an amended Full Payment Submission (FPS) correcting the figures (e.g., showing that the EE paid £1,500 less in Income Tax and £1,000 less in NI), the NI refund will not be processed automatically. Instead, you will wait for a letter from us stating that we cannot process the NI refund and requesting that HMRC handle it. However, the PAYE refund will be managed automatically without any request from us. Our payroll software allows us to refund NI for both the employee (EE) and employer (ER) from a prior tax year, but we are unable to process the PAYE refund. Therefore, we will not send a letter requesting the NI refund for EE and ER. We want to ensure that the EE receives the PAYE refund but does not receive an additional NI refund from you, to avoid a double refund.

Hi,
As we would need more information, please contact our Employers team for advice. 
Employers: general enquiries
Thank you.