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Backdated pay meant increased tax and NI

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Comments

  • TELLIT01
    TELLIT01 Posts: 18,173 Forumite
    Part of the Furniture 10,000 Posts Name Dropper PPI Party Pooper
    The tax will sort itself out at the end of the year. I don't think an overpayment of NI can be reclaimed in most circumstances.
  • chrisbur
    chrisbur Posts: 4,269 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    TELLIT01 wrote: »
    I don't think an overpayment of NI can be reclaimed in most circumstances.

    Sorry have to disagree with this, to be a touch pedantic an over-payment of National Insurance is reclaimable in all circumstances. The real question here (as with many times when employees feel that they have overpaid) is whether or not an over-payment has actually occurred.
    I am assuming that the situation is that prior to the back-pay the OP was earning below the earnings threshold for NI and most possibly all or some of the back pay if it had been paid correctly would have fallen into the band below that earnings threshold. I believe that this falls within the scope of 7 (1) (a) that I quoted.

    I would also suggest that the OP gives a bit more detail to clarify the amounts involved and to enable a check regarding tax.
    From the payslip for 1871.11 the taxable gross to date and tax paid to date along with any to date figures for NI.
    From the payslips for under-payment the gross and taxable gross if different along with the NI if any paid and the amount of back-pay relating to that payment.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    7 weeks back pay so needs at least 3 months payslip to do a full analysis especially as there is this extra pay that is subject to tax/NI
  • TELLIT01
    TELLIT01 Posts: 18,173 Forumite
    Part of the Furniture 10,000 Posts Name Dropper PPI Party Pooper
    chrisbur wrote: »
    Sorry have to disagree with this, to be a touch pedantic an over-payment of National Insurance is reclaimable in all circumstances.

    Don't apologise for correcting a misconception. :)

    I have also found this which, although from a couple of years ago, may still be relevant.

    Q: Can I claim back overpayments?
    A: Overpayments can be reclaimed from the NI Contribution Office, through a little-known arrangement, involving a CA5610 form available online at http://www.hmrc.gov.uk/forms/ca5610form.htm. Fidler said: “The onus is on the individual to check their NI contributions and ensure they are paying the correct amount and getting a rebate where appropriate. No one else will do this for them.” But NI can only be claimed back for three years.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Does the OP need to get them allocated to earned months to get the NI credits?
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