Help with tax refund - any ideas?

[Deleted User]

Husband has been on the wrong tax code since August and having spoken to the tac office, we are hoping for a refund in next months wage.
He was on 360L wk1/mth1 basis tax code.

We are trying to work out how much we are likely to get back:

From the start of the 08/09 tax year in April he was on income-based JSA until 17th August totalling £1746.69.
Since 18th August he has been working with the above tax code and up to now and including Feb 1st wage his gross pay is £4659.03, of which £630.20 tax and £220 NI.
He will earn £850.84 gross pay for each of the next two paydays this tax year.

We have out PAYE coding notice for the next tax year which puts him on 647L, but don't know what the standard one for this year is?

Any ideas how we work out how much we are due back?
Do they include JSA 'earnings' in with the total 08/09 income?
If so, I work it out as £8107.40 (?), if it's not included then his income this year will be £6360.71 (?).

We have been told it will come back in his March 1st wage packet, so would they give it back all at once or leave some tax for the April wage?

Any help would be great - sorry for the long post!

[Deleted User]

Also, if JSA is included, then why do Tax Credits not include that money in the total income for this tax year? I was told not to and gave an estimate of £6500. Is that right? Should I have said an estimate of £8246 to include our JSA money?

[Deleted User]

Just been hunting around on the net...

Is the standard tax code for this year 603L?
Does this mean that he can earn £6035 without paying any tax?

If so, if JSA is included in total income for the year, then our income for 08/09 will be £8107.40.
Is it as simple as 8107.40 minus 6035 = 2072.40 and then we only get taxed 20% on the £2072.40?
ie. tax is £414.48 for the year? meaning we have already over-paid £215.72 in tax and then wouldn't get taxed on the next two wages?

I bet it's not that simple is it...?!

fengirl_2

Yes, your calculation of the tax liability for the year is correct. Most of the refund will come at 1 March, with a small extra bit on 1 April.

Elaine_Wilson

It is that simple - almost.

Jobseekers allowance is in my list of taxable state benefits so it should be included.

What will actually happen is that at the end of this month he will get a rebate of £285. Then pay the normal tax of £69 next month.

The month 11 position is worked out like this.

Total earnings to date are £7,257.
Persoal allowance to date (11/12ths of £6,035) £5,532.

This leaves taxable pay of £1,725,

Tax due @ 20% = £345. Already paid £630, giving a rebate of £285.

I have rounded everything to the nearest pound. And it all assumes that 603 is the correct code number.

Elaine_Wilson

Forgot to answer your other question.

The notes to completing the tax credits claim particularly specify the contiribution based jobseekers allowance should be included. As you said the amount was income based then you were correct to leave it out.

[Deleted User]

Thanks Elaine, I'm glad about the Tax Credits as I wouldn't have liked to be owing them at the end of the year. It looks like we will come in just under £6500 - maybe we will get a couple of quid more if we're lucky!

When he gets his P60, does it include the income-based JSA then?
Is it that exact figure the Tax Credit people need to know in April to work out if we've been payed the correct amount and the amounts for the next year?

Thanks for all your help, looks like we will be approx. £435 better off by the end of the tax year!