Car Salary Sacrifice for a leaver.

Question

I have an employee that had a car salary sacrifice, and has now left the company and we have issued a P45. Since processing his final pay we have received a credit note for the car. My question is how to refund this to the ex-employee as too much was deducted from his pay, so we owe him.

Andy Rickeard · Answer

Hi Sylvia,

Thanks for using Community Hub.

Normally if too much is deducted you need to pay it back in the same way it was deducted. So with a salary sacrifice for a car I would expect it was deducted from the employee's earnings pre tax and pre National Insurance and should be paid back in the same way.

The following article explains how to Process extra pay for a leaver after issuing their P45 >

If this helps, please click Verify Answer.

Regards,

Andy
Sage UKI

Sage 50 Payroll

Car Salary Sacrifice for a leaver.

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING