Tax Rebate

adminannie

Hi I retired on the 12th Dec and I sent of my p45 with a form from the Tax office to say I had retired.

When the 5th April arrives I will have paid to much tax for my earnings spread over 12 months

Will I have to apply for a rebate or will it be done without me applying

thanks Annie

Mikeyorks

Regarding the refund ...... depends what 'the form' was? (P161?)

And the 'refund' will very much depend on whether you received pension / State Pension from the date you retired? And also whether you hit 65 at the time ..... and are possibly due the additional age related personal allowance in this year?

adminannie

Hi I was given a form by my local tax office but I dont know the number of it. It did have on questions about date retired and pension

I then sent it off to the tax office that dealt with my work place.

My tax code took into account that I was getting my pension. My allowance was approx £3500 before tax.

Annie

kimdegsidash

It depends on whether you started to receive state pension at the same time. HMRC change your tax code to include the amount of state pension you will receive up to the end of the tax year. As tax is intended to be paid over a full year, even if you only start to receive a new source of income part way through a tax year, there may be a potential underpayment. They sometimes remedy this by putting a whole year's state pension in your new tax code and collecting the correct amount of tax for the remainder of the tax year.

If they get your tax code right, you will pay the correct amount of tax on your state and retirement pension from the start, and if a rebate is due this will come through your pension payment not at the end of the tax year.

If they haven't got your tax code right, maybe because of the backlog of post and being quite close to the end of the tax year, you will need to approach HMRC after 5 April when you have your pension P60 and details of the amount (if any) of state pension you have received to 5 April.

If you have straight retired and are not yet drawing a retirement pension (like an annuity) then you may be due a tax rebate and should apply for this after 5 April.