9% Overall Threshold

kieron86

If I have paid over the 9% Threshold in a specific year. Can I then claim the difference back? 

Ed-1

kieron86 said:

If I have paid over the 9% Threshold in a specific year. Can I then claim the difference back? 

The rules say for employees, the required repayment is 9% of earnings over a pay period threshold. So if you are paid monthly it's 9% over the monthly equivalent threshold.

You can only claim back if your earnings for the year are below the annual equivalent threshold. Otherwise no refund is due.

kieron86

So as an example if the threshold was 2014/2015 (£16910) you earned £22000 that year so 9% after threshold should be £458.10 being taken.

£765.30 which would work out at 15% being actually taken after the above threshold. You can’t claim the 6% (£307.20) back? 

Would this not mean that terms have been breached? As they have taken more than the 9% agreed that year? 

silvercar

kieron86 said:

So as an example if the threshold was 2014/2015 (£16910) you earned £22000 that year so 9% after threshold should be £458.10 being taken.

£765.30 which would work out at 15% being actually taken after the above threshold. You can’t claim the 6% (£307.20) back? 

Would this not mean that terms have been breached? As they have taken more than the 9% agreed that year? 

That isn’t the way it works. Take the monthly threshold and your income for each month. Any month when your income is above the threshold you pay 9%. If you happen to have some months at or below the threshold, you don’t pay in those months. If your annual total income is below the annual threshold you can ask for a repayment of what you have paid.  Otherwise if individual months were over the threshold and some months under the threshold, your annual amount paid will be more than 9% of your income above the annual threshold with no entitlement to a refund.