Career Break and tax bands

KiKi

Hi there, just wondering if anyone could help me on this.

I'm in the 40% tax bracket, but I will be taking a six month career break in the middle of the financial year, which means my total salary for Apr-Mar would fall into the 20% bracket. (I am still employed by the company during that time.)

Can I reclaim the additional tax taken in the months that I am working? I'm not sure if the tax band is related to my whole income for the year, or whether the career break is irrelevant because had I been working, I'd be in the 40% band.

I do not - and have never - completed a tax return (so if advice is anything to do with that then it's not something I do currently!).

Many thanks if anyone has any advice.

KiKi

CLAPTON

whether you are in the 40% tax band depends upon your total income for the tax year 2008-9.

So if you dont work in the second half of the tax year you will be entitled to a tax refund irrespective of whether you area 40% tax payer.

If you don't intend to work at all during the second half of the year you can apply to the MHRC for a tax refund once you have finished work.

KiKi

Many thanks for the advice, Clapton; it's much appreciated.

KiKi

kitty1801

If you are still on the books with your company during your career break, they should still run the payroll every month for you and generate a refund each pay date. If you are made a leaver and don't intend to receive any taxable income/benefits you can ask the tax office for a P50 and request a 4-weekly repayment.

KiKi

Thanks, Kitty. I'm not sure what you mean by a leaver - apologies!

I will be employed by the company, and am returning to my job after six months (that's a given). I won't have any income during that time, or benefits, as I'll be travelling.

So do I ask the tax office for a P50, or will it be adjusted automatically as part of my work running the payroll?

Sorry, I wasn't quite sure what you meant.

Thanks for your help, much appreciated.
KiKi

kitty1801

If you are no longer going to be an employee (taken off the books and given a P45) then you are a 'leaver'. In this case a P50 is appropriate. Otherwise, your employer will continue to run the payroll for you with £0.00 pay, thus generating a refund.

KiKi

Thanks, Kitty.

KiKi