too much tax paid on salary

jeps

Hi apologies for the long winded post but i'm after some advice.

My daughter was employed as a bank nurse from Nov 2011 to Jan 2012, during this time she earned £5707.48 so paid no tax. She then obtained a contract within the same trust. Her earnings for Feb were due to be paid on 30.03.12 but due to someone not actioning some type of transfer paperwork she wasn't paid. After making a complaint she was given a cheque for £1835.00 which was her basic wage only, no deductions made. No wageslip so she had no idea what her correct salary was. She was aware that she would be liable for some tax as her March pay would take her over the free pay threshold.

She has today received her payslip for April , her earnings for March are shown as pay arrs of £2823.46, she has again only received her basic pay for April, her total gross pay is £4019.91. She has paid £764.76 in tax! (plus £264 student loan!)

If the £2823.46 had been paid on time on 30/03/12 she would only have been liable to pay tax on approx £1060 which i have worked out as £211.19 but because it has been paid in April she has been taxed on all of it.

Is there anyway she can get this tax back? surely she shouldnt be penalised because someone in payroll made a mistake?

thanks

Xutl

jeps wrote: »

Hi apologies for the long winded post but i'm after some advice.

My daughter was employed as a bank nurse from Nov 2011 to Jan 2012, during this time she earned £5707.48 so paid no tax. She then obtained a contract within the same trust. Her earnings for Feb were due to be paid on 30.03.12 but due to someone not actioning some type of transfer paperwork she wasn't paid. After making a complaint she was given a cheque for £1835.00 which was her basic wage only, no deductions made. No wageslip so she had no idea what her correct salary was. She was aware that she would be liable for some tax as her March pay would take her over the free pay threshold.

She has today received her payslip for April , her earnings for March are shown as pay arrs of £2823.46, she has again only received her basic pay for April, her total gross pay is £4019.91. She has paid £764.76 in tax! (plus £264 student loan!)

If the £2823.46 had been paid on time on 30/03/12 she would only have been liable to pay tax on approx £1060 which i have worked out as £211.19 but because it has been paid in April she has been taxed on all of it.

Is there anyway she can get this tax back? surely she shouldnt be penalised because someone in payroll made a mistake?

thanks

I'm afraid not. Tax is due when the payment is made rather than when it was for.

Mikeyorks

She was essentially given an advance in March. Which means that both March and April are construed as being in 12/13 Month 1 for tax / NI / SLC purposes.

Unfortunately these things happen in transition cases - and NHS Trusts seem more prone than most. She can ask the Trust to reprofile it correctly - but I don't hold out much hope. She can ask HMRC to reprofile it as 'arrears of pay' (see embedded link)

http://forums.moneysavingexpert.com/showpost.php?p=52712855&postcount=7

....... but I'm not sure they'll agree. And they won't do it until the 12/13 P60 is received.

She has paid £764.76 in tax

Close to £200 of that is because the £4019 in Month 1 has taken her into the 40% band. She will get that back over the next 1 or 2 months.

jeps

thanks for the response. i will advise her to follow your advice, she has nothing to lose.