Am I due a Tax Rebate??

Tradergirl

Hi everyone

I'm hoping someone can offer me some advice. Since January this year I have only been working 3 days a week (due to downturn) therefore my income has dropped from around £31,000 to £18,000. I am paid on a PAYE basis so will I be due a tax rebate??

Tradergirl
xx

fengirl_2

It doesn't look like it - you are still a basic rate taxpayer
.

Stuart_Bellamy

The tax should be automatically corrected through PAYE so that you only pay the amount due on your pay for the year.

As fengirl says you are basic rate anyway so shouldn't be much difference.

rikgear

I would expect so. but it would probably be best to wait a while till your wages return to normal, hopefully they will! i think the inland rev. work it out by what you pay over the year.

But beware, I was at college and for a while was getting taxed while working but as a full time student i shouldn't have been, anyway i forgot about that. a few years down the line, in full time employment i applied for a second job at Domino's Pizza, telling them it was my second job and to tax me appropriatley.
gues what? yeah and a year of asking them to sort it went straight to the IR saying i have not been paying tax on my second job but i also paid tax that i shouldn't have when i was a student. i later got a letter saying i owed them £880 so i called them an asked about the tax i paid as a student an was told 'thier records dont go back that far' somehow i think it would have been different if i'd owed them from that far back.

Tradergirl

I'm not a basic rate Tax payer, but I can't remember my code off hand.

Thanks for your help
xx

CLAPTON

what do you mean your income has dropped from 31,000 to 18,000? do you mean on a per annum basis?

Tiggergirl

rikgear wrote: »

I was at college and for a while was getting taxed while working but as a full time student i shouldn't have been, anyway i forgot about that.

Being a full time student does not exempt you from paying tax. In order to pay no tax you must be earning less than your personal allowance in that particular year. If you earn more than that, you will be taxed.

Tradergirl

CLAPTON wrote: »

what do you mean your income has dropped from 31,000 to 18,000? do you mean on a per annum basis?

Yes, on a per annum basis.

x

CLAPTON

On an annual salary of 31,000 and no other taxable income then you will pay tax at the standard rate i.e. 20% on all earning above 6035 per annum
just the same as if you earn 18,000 ... so there will be no rebate

Possetjohn

Tradergirl wrote: »

I'm not a basic rate Tax payer, but I can't remember my code off hand.

Thanks for your help
xx

Hi Tradergirl,

I have become very confused reading through this thread

What do you mean you are not a basic rate tax payer? Are the salary figures you quoted gross or net annual income? If it is gross income you should only be a basic rate tax payer unless there are some large benefits in kind. If it is net income you could be just into higher rate tax. Difficult to estimate without more detailed figures.

Suggest you post more detail if you want an accurate estimation. Gross salary (before and after change), Tax code, etc

As stuart says in post #3 The amount of tax should be adjusted in the last three months of the tax year as your earnings have reduced (9 months at 31000/year, 3 months at 18000/year)

CLAPTON

Possetjohn wrote: »

Hi Tradergirl,

I have become very confused reading through this thread

What do you mean you are not a basic rate tax payer? Are the salary figures you quoted gross or net annual income? If it is gross income you should only be a basic rate tax payer unless there are some large benefits in kind. If it is net income you could be just into higher rate tax. Difficult to estimate without more detailed figures.

Suggest you post more detail if you want an accurate estimation. Gross salary (before and after change), Tax code, etc

As stuart says in post #3 The amount of tax should be adjusted in the last three months of the tax year as your earnings have reduced (9 months at 31000/year, 3 months at 18000/year)

Basic rate (BR) tax means that the person pays 20% tax on ALL their earnings: here it would seem that the OP has a 'normal' tax code and so has a personal allowance of £6035 and only then pays 20%