Returning to study - PAYE and NIC

HMS

Hi All

After a number of years working I have just returned to studying. I'm guessing that as I went from a well paid job to poorly paid student, I will have overpaid tax for the year when total earnings for the year are examined in April.

Given that I am not going to earn much (~£2000/year) for the next 4 years - will I be able to claim back some of the PAYE tax and National Insurance that I have paid this year??? How would I go about doing it???

There must be lots or people in this situation.

Thanks for your help!

HMS

PasturesNew

Not for NI. These are calculated on a week's earnings, so were paid for each individual week you worked and were paid.

Ultimately you will get back any you overpaid. But I think you probably want it now (still part way through the tax year) ... you may be able to claim overpaid tax back during the same tax year that you have paid it in.
www.hmrc.gov.uk/students/overpaid_tax_back_1_1.htm

If you are only going to be working in the Christmas, Easter and summer holidays, and do not expect your earnings for the year to exceed your personal allowance, you can complete a P38 form which may (if you are entitled) prevent income tax from being deducted from your wages. You cannot do this if you are going to work during term-time.
www.hmrc.gov.uk/students/work_hols_while_student_8_1.htm

CLAPTON

You can claim the tax back... its usual to claim it back from the tax man once this tax year is finished... i.e. from 6th april 2008. You will need your P45.
You write to your tax office.

Of course if you get a parttime job this year and give your new employer your P45 the tax will automatically be adjusted.

NI can't be reclaimed

HMS

Oh. Thanks for the link!

Just used the Student Tax Checker http://www.hmrc.gov.uk/calcs/stc.htm and it looks like I'm on for a £700+ payment.

Just spoke to the tax office and they said I couldn't claim tax back part wat through the year as I'll still be doing some work and that it should all work itself out in the end. Will it work itself out??

Thanks a million.

CrispyUK

HMS wrote: »

Oh. Thanks for the link!

Just used the Student Tax Checker http://www.hmrc.gov.uk/calcs/stc.htm and it looks like I'm on for a £700+ payment.

Just spoke to the tax office and they said I couldn't claim tax back part wat through the year as I'll still be doing some work and that it should all work itself out in the end. Will it work itself out??

Thanks a million.

If you continue working during the tax year you should start getting some tax refunded on your payslips via PAYE, if there's still a discrepancy at the end of the tax year you could claim back the extra then.

HMS

Crispy

You were spot on. I asked my previous employer to keep me on the books, I sometimes do a little work (£50s worth) each month, and so I received regular tax back payments until April.

Thanks a million.