Tax refund question

dlpfan2019 · 20 July 2019 at 8:31AM

Hi all,

Quick question on a potential tax refund

Was working in company A through the period of April 2018 to Dec 2018 and started with company B in May 2019

I was on tax code 1304M and my yearly salary was £28,500 and I had earnt £20,044 at the time I left

Looking on Salary Calculator £20,044 would have tax of £116.73 and NI of £116.20

On my Government Gateway for the year ( due to being taxed on the £28,500 yearly total ) I paid an average of £232 in tax and £185 in NI

Obviously approx but am I right in saying I should be getting a refund of roughly £900 for tax ( £100 for each month ) and £550 for NI

Or is this not how it works at all?

Dazed_and_confused · 20 July 2019 at 8:40AM

Firstly there is almost certainly no National Insurance refund due. NI is calculated each pay day and there isn't a yearly "allowance" like there is with income tax.

You almost certainly are due a tax refund though however the way you have calculated it is unusual.

Your tax code is really irrelevant although in simple cases can be used to give a guide.

Can you post your taxable pay and tax deducted from your P45?

And did you have any other taxable income in the 2018:19 tax year? What happened between December 2018 and May 2019?

Caz3121 · 20 July 2019 at 8:41AM

there is no refund on NI, it is due by pay period
tax refund will be based on the tax due for your income for the year (including any taxable benefits) v's the amount paid in total for tax - should be on your final payslip. If you paid too much then the remainder would be the overpayment

dlpfan2019 · 20 July 2019 at 8:46AM

Thanks a lot, thought I had over complicated it

Taxable Income was £20044.70
Income Tax Paid was £1834.00
NI was £1688.04

I had no other taxable income in the year

The gap was due to me suffering from PTSD, thankfully all good now

Dazed_and_confused · 20 July 2019 at 8:54AM

Ok, the tax due on £20,044 is £1508.80 however you are also due a tax reduction for being a Marriage Allowance recipient so this knocks £238 off leaving £1,270.80 tax due for 2018:19.

Tax paid during the year was £1,834 so there is a refund of £563.20 due.

HMRC will automatically refund this sometime between now and late Autumn or you can ask them to repay it now if you want. They usually send you a calculation showing their figures and invite you to go onto your Personal Tax Account and pull the money into your bank account so it might be worth you registering to access your Personal Tax Account now in preparation for this.

https://www.gov.uk/tax-overpayments-and-underpayments

dlpfan2019 · 20 July 2019 at 8:56AM

Brilliant thanks a lot

Dazed_and_confused · 20 July 2019 at 9:13AM

Not quite so brilliant, I got two years mixed up

Should be,

Tax due on £20,044 is £1,638.80 however you are also due a tax reduction for being a Marriage Allowance recipient so this knocks £238 off leaving £1,400.80 tax due for 2018:19.

Tax paid during the year was £1,834 so there is a refund of £433.20 due.

Tax refund question

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