Redundancy, How do you claim back overpaid tax, student loan and NI for 2020/21

A friend is being made redundant with an end date of July 31st and is contemplating using this redundancy to take a break from work for a few months.
How does she go about reclaiming all the overpayments as she is PAYE, salary 50k.
In effect having only worked 4 months of the current tax year, if they have the other 8 months off?
I am presuming all her tax, student loan and NI is reclaimable as she will only have earned £16500 but paid monthly contributions as thought she would have earned £50k?
Thanks

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  • p00hsticks
    p00hsticks Posts: 12,580
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    edited 26 April 2020 at 6:46PM
    You can't claim back NI - that's deducted per pay period (Week or month) and there's no 'NI allowance' so what's been deducted each week/month is what's owed that week/month.
    If she's confident that she's not going to have any further taxable income before the end of the tax year (5th April 2021) then she will be due some tax back because some of her tax allowance will have been unused.
    She can apply for a tax rebate either online (https://www.gov.uk/claim-tax-refund) or use HMRC form P50
    Sorry, I don't know how student loans work.
     

  • IAMIAM
    IAMIAM Posts: 1,185
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    Thanks for this, what happens if she does return to work, either after the payment or in 2021?
  • p00hsticks
    p00hsticks Posts: 12,580
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    IAMIAM said:
    Thanks for this, what happens if she does return to work, either after the payment or in 2021?

    I'm not sure - I think part of the application for a refund may require you to say that you do not expect to recieve any taxable income for the rest of the year. If she thinks she is likely to return to work within the year and is not desperate for the money she may be better just leaving it to sort itself out. When she passes her P45 to any new employer any payment will automatically start to refund any tax previously overpaid, and if she is still owed tax at the end of the tax year HMRC will refund her automatically.
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