HMRC don't allow negative pension year to date figures on FPS submissions. Previous tax year pension refunds must be processed differently, especially in period one of a new tax year. To do this, follow the steps below.
Create a pay element
If you already have a pay element designed for a refund from a previous tax year, move on to the next section. If not, follow the steps below.
Click System, and then click Pay Elements.
Click New, enter a relevant Code.
Select the type drop-down and click Deduction.
Enter a quantity of '-1.00'.
Ensure the following checkboxes are not selected.
PAYE
NICees
NICers
Pension
Click Save.
Refund the pension amount
Click Process Pay, and then click Amend Period Pay.
Find and select the required employee.
Click Edit, under deductions, click Insert New Record.
Click the Pay Element drop-down, and click the refund element.
Enter the refund value into the rate field.
Ensure the quantity is '-1.00'.
Click Save.