HMRC has published new guidance for employers and employees on how to deal with tax refund claims where the employee has negative earnings. A negative earnings situation arises where the employee is required to pay back all or part of their earnings to their employer or former employer – typically as a result of a contractual clawback arrangement. The guidance confirms that individuals need to claim any tax back from HMRC rather than from the employer, either via self-assessment or by writing to HMRC.
HMRC has published new guidance for employers and employees on how to deal with tax refund claims where the employee has negative earnings. A negative earnings situation arises where the employee is required to pay back all or part of their earnings to their employer or former employer – typically as a result of a contractual clawback arrangement. The guidance confirms that individuals need to claim any tax back from HMRC rather than from the employer, either via self-assessment or by writing to HMRC.
