Earned less than £5000 in financial year, claim tax back?

owenmc60_2 · 30 January 2008 at 3:45PM

Hi everyone, im new to these forums and have a question ive searched everywhere for the answer to no avail.

Basically, im aware that you are only taxed on income over £5225 (approx). Now as ive only been working since the start of November (as i have just left college) my earnings for this financial year will be below £4000.

I have been taxed approx £170-200 each month off my earnings. Can this be claimed back? how would I go about this, and how much would i be expected to get back in April?

Cheers :rolleyes:

Conor_3 · 30 January 2008 at 3:59PM

If you're continuing in employment, you don't need to do anything as your employer should refund it after April 5th. If you're stopping work and are claiming benefits, again you don't need to do anything apart from give the JSA people your P45.

If you intend to stop work and not claim benefits or you don't get your tax back through your employer within a few weeks after April 5th, you can complete and submit a P50 (2007-08) and send it to the tax office that your company uses - you'll need the PAYE code off your P60 they give you in April.

You will get back the full amount of income tax and a proportion of the NI contributions but not all of that as some is a flat payable rate.

LittleVoice · 30 January 2008 at 8:22PM

Conor wrote: »

You will get back the full amount of income tax and a proportion of the NI contributions but not all of that as some is a flat payable rate.

I'm not sure that that is true. Under the PAYE system, National Insurance is paid on salary when it is actually received. (Earn £50 one week and £500 the next and you pay nothing the first week but full NI for the second with no allowance for the previous low pay.)

I believe the "flat rate" is for Class 2 contributions (the small self-employed amount). Class 4 contributions are based on the profits of a self-employed person and therefore they do depend on the overall annual income.

Savvy_Sue · 30 January 2008 at 9:52PM

did you fill in a P46 when you started? If you did, and ticked the box that said "this is my only or main job" or "this is my first job since leaving education" or whatever it says now, I'm surprised you're being taxed at all.

If you didn't fill in a P46, you can download one from the HMRC website.

I agree with LittleVoice about NI, btw.

Luvly.cuppa.T · 3 February 2008 at 11:33PM

Hi,
went through the same process, although mine was horrendously long.

I had to claim back from the 2006 tax year, in addition to last years. I only had one P60 from the lastest job (I had 2 jobs overall, at seperate times, not together) and I had to produce my payslips.

I strongly advise that you send in a copy of your payslips and not the originals- my reason being I need them for my tribunal evidence.

It has taken a total of 9 months plus to get this rebate sorted, as first off the tax office had my old address down, even though I have persistently told them the new one. So my rebate form went to old address and returned back to them.
They did not contact me about this at all, even though they have my correct tel number. (!)

So finally I get the form to fill out, send it back with info and documents (P60 and copies of payslips) registered , so I know that it got there safely.

It did and I waited, and waited and waited, since October for a repsonse.

I had to chase them about this and they said that they had never recieved my forms- arghhh! I had thrown my proof of posting away as I thought that after them signing for it, we were all good to go!

But anyway, after chasing them and correcting them on my address AGAIN, it finally got sorted. I have no idea if they did have my form and things in the end, or if they went by my records only..... I have my cheque now, so am happy.

So yeah, don't send anything original if you want it back!!!

Earned less than £5000 in financial year, claim tax back?

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