In the UK, the vast majority of employers have to operate PAYE as part of their standard payroll processes. The abbreviated term for ‘pay as you earn’, PAYE applies to businesses of all shapes and sizes, regardless of the sector they operate in.
First introduced in 1944, PAYE refers to the amount of income tax that is deducted from your salary before you receive it and is the system that HM Revenue and Customs (HMRC) use to collect income tax, as well National Insurance.
All PAYE payments are sent directly to HMRC, and this is automatically done before it reaches an employees’ account.
But can you get PAYE tax back if you overpay?
The good news is, if you overpay tax under PAYE or self-assessment, it is relatively easy to get back your funds by simply claiming a refund.
There’s lots of information available online regarding this including on the GOV.UK website, which is incredibly useful.
If you’re about to begin the refund process, you must be aware that if you are currently on strike, you will only be entitled to a refund once you officially leave your job or when you return to work. In this instance, you will also not receive your refund until the end of the financial year.
If you are on strike, a refund will only be paid to you either when you leave the job or when you go back to work. You will not get a refund at the end of the financial year.
Why would tax have been overpaid?
Tax could have been overpaid for a number of different reasons including the following:
- You have started a new job and are taxed under an emergency code
- HM Revenue and Customs have sent the wrong tax code to your employer, or your employer does not use the correct code
- You have more than one job, as your employer at your second job will automatically deduct tax at a basic rate
- You are self-employed and you make payments on an account for the following year, under the Self Assessment scheme
- You’re a pensioner with more than one occupational pension
How will I know if tax has been overpaid?
You can check if you have been overpaid by checking your pay slip and your Personal Tax account online.
On your payslip, you can see the tax code that is being used and your tax deductions. If you notice any discrepancies or errors, contact your payroll provider.
You can also check if you have overpaid tax by logging in to your Personal Tax account via the HMRC website. Here you will be able to view your tax paid and any tax refunds owed to you.
Is there a time limit on claiming back tax funds back?
The tax year runs from April 6th one year to April 5th the following yea and you have four years to claim back any tax from the year in which you overpaid.
If you know you have overpaid tax or you think that you might be entitled to a refund, you should visit www.gov.uk and fill out a claim form.
Can I claim back tax after losing my job?
If you have lost your job or have stopped working and have previously overpaid tax you may still be entitled to a claim a tax refund.
You may be able to claim back Income Tax is you have:
- Been unemployed for 4 weeks or more and are not claiming taxable state benefits
- Have retired and do not get a pension from your old employer
- Do not expect to go back to work
- Have returned to full-time study
Why choose Easy Paye?
Here at Easy Paye, we offer a full range of professional, affordable, and reliable payroll services. To find out more, or to discuss your payroll requirements, please get in touch with our skilled and experienced team. Get in touch! Call us on 01428747144 or email info@easypaye.org
Searching for ‘Payroll Services Near Me? Contact Easy Paye Today
Whether you know exactly what you require from our payroll services or are simply toying with the idea of outsourcing your payroll don’t hesitate to touch with the team at Easy Paye.
We take great pride in providing a range of clients with a comprehensive range of payroll services across the UK.
We’re a friendly, approachable team, and we’re always keen to chat with businesses in need of payroll services. So, get in touch today to find out more about the services we offer and how we could potentially help you to streamline your processes, saving time, money, and resources.
We provide our payroll services across Belfast, Birmingham, Bradford, Bristol, Cardiff, Coventry, Edinburgh, Glasgow, Leeds, Leicester, Liverpool, London, Manchester, Nottingham and Sheffield.
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