Entitled to tax rebate?

Cam93

firstly apologies if this is the wrong wrong section - it seemed the most fitting.

My partner has just been made redundant whilst 29 weeks pregnant - the company have paid her her final months pay, 7 weeks redundancy, 7 weeks notice and 39 weeks SMP in full yesterday

The total come to approx 12500.00 and her year end earning (as she won't be returning to work until September next year) us approx 15500.00

However she was deducted 2300 in tax for this month. Am I right in thinking she should be tax free on the first 12500 of earning so she should have only been deducted 20% of 3000.00 (the difference between 15500.00 and 12500.00)?

If so, how do we reclaim this money? Is it a simple case of wait until the end of the tax year and HMRC will refund automatically or can we get the difference back sooner/now as it would be handy with our first little one on the way?

Most recent/ final payslip attached for clarity- any help much appreciated 

chrisbur

https://www.gov.uk/government/publications/income-tax-claiming-tax-back-when-you-have-stopped-working-p50

Cam93

chrisbur said:

https://www.gov.uk/government/publications/income-tax-claiming-tax-back-when-you-have-stopped-working-p50

Brilliant, thanks for that - I assume you agree that I am right in thinking we have a rightful claim to get this back?

chrisbur

Cam93 said:

chrisbur said:

https://www.gov.uk/government/publications/income-tax-claiming-tax-back-when-you-have-stopped-working-p50

Brilliant, thanks for that - I assume you agree that I am right in thinking we have a rightful claim to get this back?

On the details given and assuming no taxable income or benefit expected as far as you know for the rest of the tax year then certainly put the claim in.

unholyangel

Cam93 said:

chrisbur said:

https://www.gov.uk/government/publications/income-tax-claiming-tax-back-when-you-have-stopped-working-p50

Brilliant, thanks for that - I assume you agree that I am right in thinking we have a rightful claim to get this back?

The tax deducted was correct at the time but that's because PAYE works on apportionment - you don't get £12500 from day 1 of the tax year. It is apportioned depending on your pay period. So 1/12th every month if paid monthly.

The redundancy pay and pension contributions weren't taxable so out of the remaining 14020 the first 3127 is not taxed (12500/12*3), the next 9375 would be taxed at 20% (basic rate band of 37500/12*3) equalling £1875 and the remaining £1518 at 40% equalling £607.20 (+ 1875 = 2482.20). 

If she's definitely not going to have any taxable income, she should be able to reclaim for the rest of the year in one go. If she might go back to work then you can still go an unemployment claim I think it's every 5 weeks or so which will refund on a pro-rata basis - with about £500 refunded the first month and about £200 per month after that intial one - exact figures will depend on dates. Based on the info you've given, she'd be due back around £2178 overall - because only £14020 of it is taxable, not the full £15666.