Was On PAYE - Now Contracting - Can I reclaim paye tax?

[lxt04]

Presumably the 4K includes National Insurance on top of income tax...

[malvolio]

?? Since when is £4k tax on £20 about right? It's 20% of free pay after tax allowance, not 20% of total pay. Dividends are not relevant to income tax for standard rate payers.

If he earned £20k a year he'd pay around £3k tax. He said - I think - he'd got £20k for part of the year, meaning his annual was between 1/11th and 10/11ths more. In which case £4k is well within the boundaries.

Dividends start to matter over £43k gross income and he's already had £20k...

[ASB]

Clearly I have not worked the full year so I have paid too much PAYE.

[tongue in cheek]

Do you not for one second consider that the payroll department of whoever you were working for has actually done what is right?

The likelyhood is that based on the information you have provided them with (a tax code and P45) presumably they have got it right.

However, tax is of course cumulative, so it's not wrong yet - but will be next month, provided you have no other income of course. In any event rather than waiting for the year end in april you could ask for a refund now (but the won't normally get it unless you are earning nothing).