To think there is no way he is getting his money back

[Logiclady94]

Evening all, I am just hoping to get some advise on how to get some overpayment if Tax back. I’ve looked it up online and I cannot find anything solid information wise.

So long story short my husband was let go in June and he was told he would get his normal wage in June then he would get 2 months salary for July and August. He actually got paid both of those salaries in one payment in July and as a result he ended up paying £900 in Tax.

He started a new job in July so luckily we didn’t go any month without income and I returned from maternity leave in October and I used all my outstanding annual leave from last year for September so I had a whole months salary in case he didn’t get a job and we needed the money.

I am just wondering how we go about getting this money back or is it a no go?

Sorry didn’t mean to enable voting

www.gov.uk/claim-tax-refund

You will definitely get it back, it's just a matter of when, but definitely before the new tax year in April. The link above should help you to claim it quicker.

So he was working in July and using his tax free allowance for that salary?

Did he give his new employer his P45? Assuming he did and they used it, the tax will be automatically adjusted through his new job via PAYE.

Tax is worked out on a cumulative basis for the year, each month the tax payable is based on annual earnings to date less tax already paid.

@JuliaJohnston- he got let go in June and that was a normal wage with a normal income tax payment. He then got a payment in July which was his normal wage x 2 but for July and August. He started a new job on the 28th July and got his first wage from the new job in August.

No tax free allowance or anything. He just got the two salary payments as one so it calculated one income tax payment of £900 because he had apparently earned that much.

@AKAanothername- he said he didn’t because he hadn’t had it yet, so what you are saying is that he will end up paying less tax overall as a result? I just think would could have done with that £500 rather than it go on tax.

He would rather have it back too, he was absolutely furious when he saw his wage slip

Usually the tax will work it's way back on subsequent pays (if applicable) because payroll systems submit and receive "real time" information to/from HMRC so the system should know how much his total gross pay and tax paid on his cumulative salary for the tax year.

As long as both his previous company and this one are above board and pay taxes and NI as they should, it will come out in the wash/PAYE system.

He would have expected to pay tax on both July and August separately though? So was the £900 payment higher than two “normal” tax payments?

Pretty sure that at the end of the tax year you can calculate how much you earned and how much tax you should have paid and reclaim the difference if you have overpaid. (By you, I mean him obviously)

It seem though that overall he got an extra months wages Ive he was paid for two months in July and one month every other monthf. So he would pay higher tax on that extra payment unfortunately because he has used up his personal allowance for that month.

What would he normally pay in tax? What may have happened is that they took the increased amount as what he would be earning monthly going forwards, and taxed him at the higher rate. In any event it’ll work out eventually over the year. Do you do self assessment?

It doesn't sound like he's overpaid tax OP, as he will have used his cumulative tax free allowance each month due to starting the new job and getting paid in August. If he had been paid as you were expecting a months pay in July and then a month's pay in August, at the same time as being paid from a new job in August, he would have been due to pay a higher tax amount in August instead of July. Annoying when you aren't expecting it, but unfortunately I think tax is likely to have been calculated correctly and no refund due.

Dh had this when changing jobs, after the tax year finished he automatically got a rebate (we didnt have to apply) as he had overpaid

Is the 900 extra tax? He would have always paid tax on those 2 months as normal, so its just the extra he'll get back.

Bit odd to be so angry about it, obviously if he had a double psyment more tax woukld come out, and as others have said it will readjust by end of year

Rebates are often processed now as part of the PAYE system during the tax year. If for some reason that does not happen correctly, then typically by November HMRC calculates what it should have been and issues a rebate or a bill (Google: HMRC P800).

Income Tax: The PAYE system should resolve that during the tax year once new employer has processed P45 from the job that ended.
National Insurance: I don't know of any way of getting back any overpayment from that.

He will definitely get it back, but maybe not until the end of the tax year. But you just need to phone HMRC and ask.

If he’s paye then it’s calculated as you’re being paid every month taking into account how much tax free you’ve had and how much you’ve been paid up to now whether it’s 40k less -40-140-40+

I’ve had times when changing jobs that I’ve overpaid and few months after hmrc has sent me a bank cheque with what I paid. And other times they just add it to your tax free.

What I don’t understand is why he’s mad. I earn let’s say 2k and pay 300 in tax. If one month I earn 4K then I’d expect to pay 600 or so in tax. At the end is the same in two months or one. But yeah I’d not worry if overpaid then he’ll get it refunded via his salary. He might not get as much as he expects tho

As long as both are PAYE should be fine A I’ve got automatic rebates at the end of the year with similar scenarios/emergency tax codes etc

@LaPampa- Yes it was higher than he should have paid in 2 months wages, I wouldn’t be asking how to get it back if it was correct.

It is about £400 or £500 he would need returning to him.

[quote Logiclady94]@LaPampa- Yes it was higher than he should have paid in 2 months wages, I wouldn’t be asking how to get it back if it was correct.

It is about £400 or £500 he would need returning to him.[/quote]
But he was already using his tax free allowance on his July salary?...

@LeroyJenkinssss- that is exactly it. He had got his wage in June like he should but he was let go a couple of days before that so that wage slip was unaffected. They advised that in July he would receive two months salary for July & August as two final months salary.

On that wage slip there was a higher salary amount as the gross which was obviously supposed to be 2 months worth. He was then charged tax as if that is what his salary was going forward.

He only received one pay slip in July which was from his old job and he received his first wage from his new job in August.

I hope that explains it in detail. He should get some of it back as there was about £900 we were expecting

You say he received two extra months salary after redundancy. Was this salary for a notice period or a redundancy payment? Is not a portion of redundancy payments tax free (30k)?

My DH was made redundant recently. He got paid his salary throughout his 3 month's notice period a d then got a separate reduancy payment, which he paid tax on because he was well over the tax-free allowance). His redundancy was based upon 10 months pay. If your DH got money for only 2 months pay would he not have been within the tax free redundancy allowance?

Was it a PILOT (payment in lieu of notice)? If so there are different tax rules. I'll see if I can find the link

PILON of course it is a Friday!