Claim back over paid tax on PAYE?

Snookie12cat

Things have come on a lot since I last got a tax return, but I got a large bonus last month (cost of living so not normal) of £1000. I normally pay no tax as I earn £10400 a year, but I paid close to £200 tax on this. I will still be under the threshold even with this bonus, so my question is how and when do I get this back?

Dazed_and_C0nfused

Is your tax code being operated on a cumulative basis i.e. 1257L not 1257LX or 1257L w1/m1 or 1257L noncum?

If so you don't need to do anything.  The tax would be correct because at month 4 of the tax year you are earnings at a rate of £13,400/year.  So likely over your tax code allowances.

If you earn just £867 again next month then your annual earnings will drop to £12,800 so some of the tax will be refunded by your employer as part of your wages.  And the same again the following month.  Once your annualised earnings drop to below £12,570 you will have got all the tax back.

That's how Pay As You Earn works.

Snookie12cat

Dazed_and_C0nfused said:

Is your tax code being operated on a cumulative basis i.e. 1257L not 1257LX or 1257L w1/m1 or 1257L noncum?

If so you don't need to do anything.  The tax would be correct because at month 4 of the tax year you are earnings at a rate of £13,400/year.  So likely over your tax code allowances.

If you earn just £867 again next month then your annual earnings will drop to £12,800 so some of the tax will be refunded by your employer as part of your wages.  And the same again the following month.  Once your annualised earnings drop to below £12,570 you will have got all the tax back.

That's how Pay As You Earn works.

Thats great news - yes, on the standard tax code minus the marriage tax element (but still I stay under the threshold or just about). So I just keep an eye out in the next few months and hopefully it will all come back to me  

Thank you 

Dazed_and_C0nfused

In that case you won't get all of the tax refunded.

Assuming your tax code is 1131N then your taxable pay is going to £11,400 so you will end up paying about £15.  A fraction less if you are Scottish resident for tax purposes.

But not too much from £1,000 🙂