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Paye Deductions

Paye Deductions


If the company has deducted paye for an employee and paid to HMRC but at the tax year end  employee salary is lower than personal allowance limit. Should the company claim back employer and employee NI plus tax from revenue.

Thanks In Advance


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12th Apr 2012 08:47

Just the tax

The employer should have deducted tax based on the PAYE code issued to the employee, which won't necessarily be equal to the personal allowance.

If at the end of the year, the employee thinks they have paid too much tax, the employee can claim the tax back by contacting the tax office.  But don't forget it is your total income from all sources that is relevant, not just your employment income.

National insurance is calculated on a weekly or monthly basis, so if your salary was over the threshold in that week or month, you pay NI, which is not usually refundable even if your total earnings for the year are below the annual threshold.   (Refunds are sometimes available - eg if you pay more than the maximum amount, which can happen if you have more than one job).

I would ring the tax office and ask them to review your file if you think you have overpaid, but if it is the year ended 5/4/12 you are looking at, they won't have details of your pay etc from employers yet so you should maybe leave it a few weeks (filing deadline for employer returns is 19/5/12).

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12th Apr 2012 09:16


Thank you so much

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