Hi,

Thanks for using Community Hub

The ideal would be to reprocess the payments in which the deductions were taken. This would update the relevant year to date values for the tax year being corrected. If you do reprocess, our reprocessing checklist can help with this.

As salary sacrifice deductions are deducted before tax and NI calculate, you may be able to just process the refund in the employees next payment with a pre tax pre NI payment. That said though, I'd advise you contact HMRC to check that'd be ok before you process it.

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Regards,

John Howells
Sage UKI

Thank you!