Help Undestanding PAYE Tax

rhunton · 25 April 2015 at 1:06PM

I'm after some advise regards tax and whether or not I'd be entitled to a tax rebate.

Basically I was at work full time until October 2013, I then took a sabbatical from work for 12 months and returned to work in October 2014

During the time that I was away from work I received no income from any other sources.

My question is, I'm allowed to earn is is £10,000 / year tax free. Tax Code: 1000L

If my gross pay for 6 months was £14,500, does that mean I should only pay tax on the £4,500?

I'm sure my employer will sort it all out but its confused the hell out of me and just wanted to check.

Thanks in advance.

xylophone · 25 April 2015 at 1:57PM

Your sabbatical year was over two tax years.

The tax year 2013-14 ended on 5 4 2014 - presumably you received a tax refund for that year?

You returned to work in October 2014. The tax year 2014-15 ended on 5 4 2015. Your tax code for the year 2014-15 was 1000L.

What does your P60 (or March payslip) show as your income and tax for the year?

http://www.listentotaxman.com/

rhunton · 25 April 2015 at 7:00PM

Yes I received tax back for the previous year.
I've not got my p60 yet but payslip says
Taxable Pay £14,442
Tax Paid £1,888

Thanks

sueturnersmith · 25 April 2015 at 7:17PM

Providing you had no other income or benefits for the tax year 2014/2015 (from April 6th 2014 to April 5th 2015), then you should get a refund of about £1000. You need to contact the tax office which deals with your employer, and explain that you had no other income. They should be able to sort out your refund.

sueturnersmith · 25 April 2015 at 8:30PM

blondebubbles wrote: »

With a taxable pay of £14,442 and a £10,000 personal allowance the tax due would be £886.60.

There is no longer a set number depending on your employers tax office, it's all done nationally.

There is info on the gov site on claiming a refund -

https://www.gov.uk/claim-tax-refund/too-much-tax-taken-from-your-pay

Sorry, it's some time since I worked there!

Help Undestanding PAYE Tax

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free