Claim Tax AND NI Refund

[backbencher]

Last year I joined company and they deducted Tax and NI contributions from my salary on prudent basis. I would like to claim extra Tax and NI contributions which has been charged on my salary.

For Tax Refund: I am trying to use online Self Assessment on HMRC and they are asking me for Unique Tax Reference Number (UTR). Where do I get UTR from?

For NI Refund: Is there any website where I can submit my claim online? If not, can someone help me with the letter format.. as I am bit confused what details need to be put into it?

 

[RTI-man]

Firstly, are you registered self employed? If so then you should have a UTR, if not then you'll need to register.

I'm unsure what you mean by "on a prudent basis", why is it that you feel a refund is due?

 

[David Griffiths]

You shouldn't be using self assessment to claim tax overpaid as an employee. Contact the tax office dealing with your employer and send them a copy of the P60

It would be unusual for there to be any refund of NIs as they are calculated separately each pay period, except for directors.

 

[Tom McClelland]

Last year I joined company and they deducted Tax and NI contributions from my salary on prudent basis. I would like to claim extra Tax and NI contributions which has been charged on my salary.

For NI Refund: Is there any website where I can submit my claim online? If not, can someone help me with the letter format.. as I am bit confused what details need to be put into it?

Deductions of PAYE and NI made by an employer are not a matter of choice. They are rigorously defined by the regulations. An employer can neither make prudent nor optimistic deductions. Only correct ones according to the rules governing employment deductions.

In particular the NI is unlikely to be refundable. NI thresholds are often quoted annually as if it were an annual tax, but NI is actually a periodic tax on employment with specified deduction thresholds and rates for each period worked. If calculated correctly at the time these are not refundable.

 

[backbencher]

Firstly, are you registered self employed? If so then you should have a UTR, if not then you'll need to register.

I'm unsure what you mean by "on a prudent basis", why is it that you feel a refund is due?

Thanks for your response.. I am not self employed, I was employed as salaried professional.

Do you mean even for salaried employee like me.. I should register as self employed with HMRC?

I understand that Tax/NI is calculated based on Gross earning per year and it is deducted by employer keeping in mind that an employee is going to earn x amount in that year.. However I was unwell and have taken unpaid leave since last 3 months..

 

[Tom McClelland]

Thanks for your response.. I am not self employed, I was employed as salaried professional.

Do you mean even for salaried employee like me.. I should register as self employed with HMRC?

I understand that Tax/NI is calculated based on Gross earning per year and it is deducted by employer keeping in mind that an employee is going to earn x amount in that year.. However I was unwell and have taken unpaid leave since last 3 months..

Your understanding about NI is incorrect, as explained in above responses. NI is a tax on employment that is deducted weekly or monthly according to weekly or monthly earnings. No refunds of such deductions will be considered.

 

[backbencher]

You shouldn't be using self assessment to claim tax overpaid as an employee. Contact the tax office dealing with your employer and send them a copy of the P60

It would be unusual for there to be any refund of NIs as they are calculated separately each pay period, except for directors.

Hey thanks.. for tax refund I just called up the HMRC office and they are sending me some forms to fill up for claiming the refund..

For NI refund I need to write a letter to NI office.

 

[backbencher]

Your understanding about NI is incorrect, as explained in above responses. NI is a tax on employment that is deducted weekly or monthly according to weekly or monthly earnings. No refunds of such deductions will be considered.

I'm non EU resident, been out of work for few months (due to ill health and never claimed any benefit).. now I'm planning to move back to home country.. even in that case I cant claim refund?

If yes, then it is strange coz I may never claim benefits which I already paid for..

 

[Tom McClelland]

I'm non EU resident, been out of work for few months (due to ill health and never claimed any benefit).. now I'm planning to move back to home country.. even in that case I cant claim refund?

If yes, then it is strange coz I may never claim benefits which I already paid for..

I don't know all the rules for foreign nationals, but I doubt that anything you're saying there is relevant. NI is a tax on employment that is charged per week or month worked. The money isn't earmarked for any kind of spending in particular so the fact that you wouldn't be likely to benefit from NHS or UK pension isn't significant. By all means write a letter to the address that you were given, but I suspect that it is a very long shot indeed.

If you were assigned to work here short-term by an overseas employer then there is just a chance that the NI could be recovered. And if you were paying employment taxes in another EU country then you can avoid double-taxation. That's about it, I think.

 

[loveaccounts]

I agree that payment of NI is not merely an exchange for benefits- if you had needed emergency treatment on the NHS would you have expected to be turned away for not paying enough NI?!

However, if you are a temporary resident in the UK, there are 3 circumstances under which you should not have paid NI, these are (from HMRC website)

"a worker who has been sent to work temporarily in the UK will not be subject to UK NICs if they are from:

• Another EEA country or Switzerland who holds a valid form A1 (or E101) issued by the authorities there. They will be exempt from NICs and continue to pay contributions in the other country for the period covered by the form. A list of the EEA countries can be found at the end of this guide.
• A country with which the UK has a Reciprocal Agreement (RA) or Double Contribution Convention (DCC) and who holds a certificate issued by the authorities there. They will be exempt from NICs and continue to pay contributions in the other country for the period covered by the certificate. A list of agreement countries can be found at the end of this guide.
• A country which is outside of the EEA, or Switzerland, or with which the UK has an RA or DCC agreement. They will be exempt from paying UK NICs for the first 52 weeks of their employment here provided that the following conditions are met:
  • they are not ordinarily resident in the UK
  • they normally work outside the UK for a foreign employer
  • they are sent to work in the UK for a time by that foreign employer
  • when in the UK they continue to work for that employer"

Otherwise you cannot claim your NI back.


Hope that helps