Tax refund through employer

alexjonsson

Hi All,

I started a new job on 18th March, having been on the sick for the whole of the last tax year.

I got pad at the end of last month, and rightly so as I hadn't earned above the threshold was not taxed.

However, my payslip for this month shows a full month's tax.

HMRC guidance advises that any overpaid tax will be paid by my employer, but my question is how long will it take? I was rather hoping that payroll would not take tax off for the period 1-5th April.

Would I be right to go to payroll and ask them to ensure the refund is process and get it sorted, or would this not normally take too long to happen anyway?

chrisbur

alexjonsson wrote: »

Hi All,

I started a new job on 18th March, having been on the sick for the whole of the last tax year.

I got pad at the end of last month, and rightly so as I hadn't earned above the threshold was not taxed.

However, my payslip for this month shows a full month's tax.

HMRC guidance advises that any overpaid tax will be paid by my employer, but my question is how long will it take? I was rather hoping that payroll would not take tax off for the period 1-5th April.

Would I be right to go to payroll and ask them to ensure the refund is process and get it sorted, or would this not normally take too long to happen anyway?

Without knowing the actual figures cannot say if what you have paid is correct or not but a couple of general ideas regarding PAYE may help.
Tax is due when a payment is made, not when it is worked; so as long as you were paid between 6 April and 6 May all thoses earnings will count as month 1 of this tax year.
The payment made to you should have 1/12 of your yearly tax allowance deducted from it and tax then deducted from what is left, at 20% unless you earn enough to go into a higher band then these bands would be applied at 1/12 of the yearly allowance.
If still unsure post up your full payslip details for checking.

alexjonsson

Thanks chrisbur, I think you have answered my question. It seems like they have taken the correct amount for now.

However, I did earn under the threshold last tax year, and if for example I was paid weekly on a Friday, then I wouldn't have been taxed for the period 1-5th April 2013.

Therefore as far as I understand, that money is technically owed back to me. I guess so long as it will come back eventually it will be OK, but I was just hoping to get it sooner.

On a side note, although the taxed money would probably cover a week's groceries, I feel bad for wanting it back so soon. I've had a lot of services (NHS, welfare) from this country and am definitely a net taker not contributor over my life. Not my choice, but circumstance unfortunately. But still, I don't make policy, and therefore feel that getting the tax refunded is my right.

LittleVoice

alexjonsson wrote: »

Thanks chrisbur, I think you have answered my question. It seems like they have taken the correct amount for now.

However, I did earn under the threshold last tax year, and if for example I was paid weekly on a Friday, then I wouldn't have been taxed for the period 1-5th April 2013.

Therefore as far as I understand, that money is technically owed back to me. I guess so long as it will come back eventually it will be OK, but I was just hoping to get it sooner.

On a side note, although the taxed money would probably cover a week's groceries, I feel bad for wanting it back so soon. I've had a lot of services (NHS, welfare) from this country and am definitely a net taker not contributor over my life. Not my choice, but circumstance unfortunately. But still, I don't make policy, and therefore feel that getting the tax refunded is my right.

You received under the 2012/13 threshold in that year - and therefore did not have tax deducted by your employer when you were paid in March.

As you weren't paid again before 6 April 2013 there is nothing "technically" owed to you for overpaid tax in the amount you "earned" between 1 and 5 April. When you worked to earn the money is not what counts: what matters is the date you were paid. The pay in respect of 1 and 5 April was received by you in the new tax year and that is what counts. I'm afraid there is nothing for you to reclaim.

chrisbur

alexjonsson wrote: »

Thanks chrisbur, I think you have answered my question. It seems like they have taken the correct amount for now.

However, I did earn under the threshold last tax year, and if for example I was paid weekly on a Friday, then I wouldn't have been taxed for the period 1-5th April 2013.

Therefore as far as I understand, that money is technically owed back to me. I guess so long as it will come back eventually it will be OK, but I was just hoping to get it sooner.

.

Sorry to disapoint again but the money you earned 1-5 April was paid to you in your salary for month 1 of this tax year, there will be no adjustment at any time.

alexjonsson

OK message received!

Thanks for answering my questions so promptly, it seems that I won't need to go down to payroll and make a fool of myself asking for a refund.

I had always thought that the threshold applied for the whole year in which earnings were made, not just when you actually get paid.

t0rt0ise

No, it's definitely when you get paid and not when it was worked although there are exceptions. I researched it as I too was tax free last year but not this and as I just got paid in April for work done in March I will pay tax on it. It is unfair but it's the rules.