Claiming back tax and national insurance

sunshine1980

Evening

I am currently on maternity leave which I started in April. As I am on SMP and going back part-time my earnings this tax year will be c.£6,500 which is under the threshold for paying tax and national insurance.

However I am still having tax and national insurance deducted from my salary. For two months I did have some tax refunded but only £21.20. So far I have paid tax of £299 and NI of £212.

I just wondered if the tax I have paid will be refunded over the course of this year or whether I have to wait until the end of the tax year. If I have to wait until the end of the tax year will the refund be automatic or will I have to apply for a refund? Also, how do I get my NI contributions refunded?

Any help would be appreciated. Thanks.

Torry_Quine

You don't get NI contributions refunded as they are payable based on each wage over about £140 per week I think rather than a cumulative amount over the year as tax is.

CLAPTON

facts and numbers always help

chrisbur

If we assume that you are on a tax code of 747L cumulative, that you are not in the 40% tax band and that you will remain on your employers books untill the end of the tax year then....

each month you can earn about £623.25 before tax is due.
if you earn over this then 20% of the excess will be taxed at 20%.
if you earn under this then 20% of the amount it is under will be refunded to you. (tax is worked out on full pounds so the 20% may not work out to the penny)
if your total earnings by the year end are under £7479 then all of your tax paid will have been rebated to you.


As has been advised earlier NI will not be rebated.