Skip to main content

Pension refund from a previous tax year

How to process a pension refund from a previous tax year.

R
Written by Robert Martin

HMRC do not allow negative pension year to date figures on FPS submissions. Previous tax year pension refunds must be processed differently, especially in period one of a new tax year. To do this, follow the steps below.

Create a pay element

If you already have a pay element designed for a refund from a previous tax year, move on to the next section. If not, follow the steps below.

  1. Click Payroll, and then click Pay Elements.

  2. Click New Pay Element, enter a relevant Code.

  3. Select the type drop-down and click Deduction.

  4. Enter a quantity of '-1'.`

    📌Note: If you can't enter a quantity of -1, you will need to enable negative quantities.

  5. Ensure the following checkboxes are not selected.

    • PAYE

    • NICees

    • NICers

    • Pension

  6. Click Save and Close.

Refund the pension amount

  1. Click Payroll, and then click Employees.

  2. Find and select the required employee.

  3. Click Standard Pay, and then click New Pay Element.

  4. Click the magnifying glass icon

    .

  5. Find and double-click the pay element created in the section above.

  6. Enter the refund value into the rate field.

  7. Click Save and Close.

Related Articles
Did this answer your question?