Hi Terri
Congratulations on your first payroll client. This is normal. unlike NI contributions tax is calculated cumulatively and any periods where pay has dropped or after periods of non payment i.e between jobs can give rise to a refund. In some cases an employee may receive a refund for a few weeks until the tax software corrects itself. If you are still in doubt, insert your figures into the HMRC calculator/tool on their website.
All the best.
Regards Angie
Edited at 27 Oct 2011 09:30 AM GMT
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