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Help! I think I'm being taxed too much! watch

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    I work full-time during holidays when I'm not at uni, and because I filled in a P38 (I think) I don't get taxed normally. This month, though, I've worked a lot more to cover people on holiday so I've earned quite a lot. I've had to pay the equivalent of about 8% tax on that, even though for the year I won't go over my allowance. I've spoken to my boss and she's said not only is that the right thing for them to do but I won't be able to claim that back, which doesn't sound right to me. What should I do?
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    Is this income tax or national insurance?

    If it's the latter, then sadly it is calculated each time you're paid - i.e. if you go over 1/12th of the NI minimum in a month, you pay NI on anything above that. It isn't done annually as income tax is, and you can't claim it back. It's a bugger!
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    I've not actually seen my payslip yet so I'm not sure, my boss implied it was income tax though, how are NICs worked out?
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    If you've earned over the monthly amount for tax then you will be taxed, but if at the end of the tax year, you haven't earned up to the minimum, you can fill in a tax return form to claim the amount back.

    NICs can be claimed back, I believe, if you pay too much. If you are paid under £5720 a year, you do not have to pay NICs, and so I think you can write to Inland Revenue and claim that back, but I don't really know tbh.
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    (Original post by smellslikemarmite)
    NICs can be claimed back, I believe, if you pay too much. If you are paid under £5720 a year, you do not have to pay NICs, and so I think you can write to Inland Revenue and claim that back, but I don't really know tbh.
    No - it is worked out for each pay period. So you could earn over the limit one month and then earn nothing for the rest of the year, and not be entitled to a refund.
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    (Original post by sandettielightvessel)
    No - it is worked out for each pay period. So you could earn over the limit one month and then earn nothing for the rest of the year, and not be entitled to a refund.
    :ditto:
    As for the rates, employees' NICs are calculated at 11% on the excess above £476 per month (for the 2009/10 tax year), and then 1% on any excess over £3,656 per month.

    For example, on monthly earnings of £600, the deduction for employees' NICS will be 11%*(600-476)=£13.64
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    Best thing to do would be to get hold of your payslip, if you still can't work it out then phone the tax people and ask them a) what your tax code is and b) why you've been taxed. They can explain it and if you've been taxed too much you can send off a covering letter as well as your payslip and other details and may get a refund.
 
 
 
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