I've been notified by HMRC that I have been deducting Student Loan Plan type 1 for one of my employees rather than Plan type 2.
They require my next FPS to show the correct YTD figure, zero in this case for CSL Plan Type 1.
I have made a liabilities adjustment for the employee concerned using a negative figure on the CSL Plan type 1 item so the YTD figure is now correct.
I am unsure though how to reimburse this money to the employee as it should. incur tax, NI, auto enrolement and ironically CSL Plan type 2 deductions, which would be dependant on the date issued.
We will have the money back from HMRC, how do I get it back to the employee and properly accounted for?
