Reclaiming PAYE Tax

koopa_coffee

Hello all, I wasn't sure where to ask this question so I thought I'd post it in this board.

I am a 22 year old student working part time (yearly salary of £4800) and as such I don't need to pay any tax on my income as my salary falls below the threshold. However over Easter I worked 48 hours of overtime resulting in an additional £280 to my monthly wage. Despite the fact that this would not take me over the tax threshold I have been deducted £30 PAYE Income Tax and £23 NI.

Am I entitled to claim this money back? If so, how would I go about it?

Thanks for any advice.

koopa_coffee

No-one at all?

scootw1

if you visit your local tax office and explain the situation they will be able to help you out. It will all depend of course on your tax code. If that is not set right then you will pay tax. The tax office will be able to inform you of this. I wouldn't have thought you would have to pay tax on that amount.

andyrules

Good luck. Just a heads up - record and track all mail and keep copies. My student DD is still chasing money they owe her from last year.

p00hsticks

koopa_coffee wrote: »

I am a 22 year old student working part time (yearly salary of £4800) and as such I don't need to pay any tax on my income as my salary falls below the threshold. However over Easter I worked 48 hours of overtime resulting in an additional £280 to my monthly wage. Despite the fact that this would not take me over the tax threshold I have been deducted £30 PAYE Income Tax and £23 NI.

Am I entitled to claim this money back? If so, how would I go about it?

Thanks for any advice.

By my calculation, an additional £280 does take you over the tax threshold though......

£4800 a year is £400 a month - but if you earnt an extra £280 in April then that means your April pay packet would have been £680.

If you earnt that every month that would be 12 x £680 which is £8160 - over the single persons tax allowance of £6,475 - and thats why you've had tax & NI deducted. It'll happen every time you earn over £540 ( £6,475 / 12 ) in a month. If your employer operates a PAYE system then they have to deduct that tax - they have no choice.

If by the end of the tax year (april 2010) you haven't actually earnt over the taxable allowance figure of £6475 then you'll be able to get the tax you've paid refunded by contacting HMRC. You may be able to get it sooner, I'm not sure - try asking them. I don't think you'll be able to claim back the NI though.

Sharon87

I had this as well when I did a summer job inbetween uni years. You get your P60 at the end of the tax year, then you can claim the tax back.

McKneff

As far as i know you cannot reclaim the NI element.

(sorry poohsticks, i have just noticed you said that at the end of your post)

koopa_coffee

p00hsticks wrote: »

By my calculation, an additional £280 does take you over the tax threshold though......

£4800 a year is £400 a month - but if you earnt an extra £280 in April then that means your April pay packet would have been £680.

If you earnt that every month that would be 12 x £680 which is £8160 - over the single persons tax allowance of £6,475 - and thats why you've had tax & NI deducted. It'll happen every time you earn over £540 ( £6,475 / 12 ) in a month. If your employer operates a PAYE system then they have to deduct that tax - they have no choice.

If by the end of the tax year (april 2010) you haven't actually earnt over the taxable allowance figure of £6475 then you'll be able to get the tax you've paid refunded by contacting HMRC. You may be able to get it sooner, I'm not sure - try asking them. I don't think you'll be able to claim back the NI though.

Thanks a lot for that informative post. I wasn't aware that's how the tax is calculated, I just assumed that as £4800 + £280 < £6475 then I wouldn't be taxed on that income.

I assume that I should keep all wage slips until the end of the tax year for making possible claims?

p00hsticks

koopa_coffee wrote: »

I assume that I should keep all wage slips until the end of the tax year for making possible claims?

It's always a good idea to hang on to your payslips - I'd say for up to seven years as HMRC can query your payments up to seven years back.

However, it shouldn't strictly speaking be necessary in this case - your employer should give you a P45 if you leave before the end of the tax year, or a P60 at the end of the tax year if you are still working for them then. Either will contain a summary of the total amount you've been paid over the year and how much tax & NI has been deducted.