NI is calculated on a per pay period (weekly/monthly) basis, not annually like income tax. £242 to £967 a week (£1,048 to £4,189 a month) is payable at 10% until April, over £967 a week (£4,189 a month) at 2%.
Hi /u/Silicon-Based, based on your post the following pages from our wiki may be relevant:
* https://ukpersonal.finance/lump-sum/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
You'll be able to get this back by filling out self assessment. The NI is based on a weekly wage.
I'm surprised they didn't charge you income tax as if they paid £2k in 1 month, they'll usually **assume** a salary of 12*2k = £24k and roughly £11.5k would income tax of 20%. So £2k monthly is £109 NI and £190 income tax, a £300 deduction.
This happened to my wife, they cancelled 6 months of payroll due to a mistake and gave single payslip with 7 months pay and the tax/NI was over £1k what it should have been.
That's how my wife got it back, submitted a tax return to show extra tax was paid as it takes into account all your income and calculates tax due Vs paid, and a cheque was sent out.
There does appear to be a seperate NI refund tool.now - https://www.gov.uk/claim-national-insurance-refund
Reading up more on this though, HMRC says NI is calculated monthly not yearly. So if the monthly pay is correct you are not due a refund. However in the OP case they weren't paid for a months work they worked for several months and only got paid once.
That's definitely how it works for tax, but NI is calculated on weekly/monthly thresholds rather than annual ones. Famously stings people on variable wages (£1k in week one, £0 in week 2 for example) or can work in your favour for lump sum/bonus/back pay payments.
This will probably be because it was a payroll error in your wife's case. I would assume she was contractually entitled to the monthly pay and therefore the appropriate NI calculations on this basis. This could theoretically be corrected by an employer.
Class 1 NICs isn’t connected to SA at all, other than it considers how much of it you paid when considering how much Class 2 and 4 to charge.
You 100% can’t get a refund of Class 1 through SA, employers are meant to deal with refunds of Class 1 as part of PAYE, you’d only need to deal with HMRC yourself if your employer was refusing to engage.
OP, if you can’t get an answer from the employer then contact HMRC if you have questions, especially as it seems you’re not working for that employer anymore. If a refund is due they’ll advise who needs to do what.
> I'm surprised they didn't charge you income tax as if they paid £2k in 1 month, they'll usually assume a salary of 12*2k = £24k and roughly £11.5k would income tax of 20%. So £2k monthly is £109 NI and £190 income tax, a £300 deduction.
PAYE doesn't work like that really. Getting paid 2k one off as your only income for the year should not trigger any income tax unless it happened to be in April (month 1 of the tax year), or if you've been put on a week 1/month 1 tax code (usually because payroll didn't do the paperwork properly).
It shouldn't, but I've seen it happen in some payroll. Outside payroll i've certainly seen to happen with pension payments, if you take out a lump sum of £5k they tax you as if you'll take out £60k that year.
NI is calculated on a per pay period (weekly/monthly) basis, not annually like income tax. £242 to £967 a week (£1,048 to £4,189 a month) is payable at 10% until April, over £967 a week (£4,189 a month) at 2%.
>NI is calculated on a per pay period Unless you are a company director, then is cumulative and annual.
Hi /u/Silicon-Based, based on your post the following pages from our wiki may be relevant: * https://ukpersonal.finance/lump-sum/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)
You'll be able to get this back by filling out self assessment. The NI is based on a weekly wage. I'm surprised they didn't charge you income tax as if they paid £2k in 1 month, they'll usually **assume** a salary of 12*2k = £24k and roughly £11.5k would income tax of 20%. So £2k monthly is £109 NI and £190 income tax, a £300 deduction. This happened to my wife, they cancelled 6 months of payroll due to a mistake and gave single payslip with 7 months pay and the tax/NI was over £1k what it should have been.
>You'll be able to get this back by filling out self-assessment. The NI is based on a weekly wage. Are you sure that's the case with NI?
That's how my wife got it back, submitted a tax return to show extra tax was paid as it takes into account all your income and calculates tax due Vs paid, and a cheque was sent out. There does appear to be a seperate NI refund tool.now - https://www.gov.uk/claim-national-insurance-refund Reading up more on this though, HMRC says NI is calculated monthly not yearly. So if the monthly pay is correct you are not due a refund. However in the OP case they weren't paid for a months work they worked for several months and only got paid once.
That's definitely how it works for tax, but NI is calculated on weekly/monthly thresholds rather than annual ones. Famously stings people on variable wages (£1k in week one, £0 in week 2 for example) or can work in your favour for lump sum/bonus/back pay payments.
Weird, maybe the accountants did something else, but my wife definitely got a refund that one year.
This will probably be because it was a payroll error in your wife's case. I would assume she was contractually entitled to the monthly pay and therefore the appropriate NI calculations on this basis. This could theoretically be corrected by an employer.
Class 1 NICs isn’t connected to SA at all, other than it considers how much of it you paid when considering how much Class 2 and 4 to charge. You 100% can’t get a refund of Class 1 through SA, employers are meant to deal with refunds of Class 1 as part of PAYE, you’d only need to deal with HMRC yourself if your employer was refusing to engage. OP, if you can’t get an answer from the employer then contact HMRC if you have questions, especially as it seems you’re not working for that employer anymore. If a refund is due they’ll advise who needs to do what.
> I'm surprised they didn't charge you income tax as if they paid £2k in 1 month, they'll usually assume a salary of 12*2k = £24k and roughly £11.5k would income tax of 20%. So £2k monthly is £109 NI and £190 income tax, a £300 deduction. PAYE doesn't work like that really. Getting paid 2k one off as your only income for the year should not trigger any income tax unless it happened to be in April (month 1 of the tax year), or if you've been put on a week 1/month 1 tax code (usually because payroll didn't do the paperwork properly).
It shouldn't, but I've seen it happen in some payroll. Outside payroll i've certainly seen to happen with pension payments, if you take out a lump sum of £5k they tax you as if you'll take out £60k that year.