Tax refund in wages.

robertfleckney

I finished work in December and started back at Uni for 6 months. I finished for the summer and returned to my old work for 9 weeks of the summer holiday.

Last months wage slip had the usual PAYE tax and NI deductions, however this month the PAYE tax from last months wages was refunded and no PAYE tax deducted.

Is this correct? I am assuming I am not eligible to pay tax yet as my current earnings do not exceed £6470.

Any help would be appreciated, as I don't want to be having to pay this tax back at a later date.

BTW my tax code is 647L.

Thanks in advance,

Rob.

jem16

robertfleckney wrote: »

I finished work in December and started back at Uni for 6 months. I finished for the summer and returned to my old work for 9 weeks of the summer holiday.

Last months wage slip had the usual PAYE tax and NI deductions, however this month the PAYE tax from last months wages was refunded and no PAYE tax deducted.

Is this correct?

More than likely.

I am assuming I am not eligible to pay tax yet as my current earnings do not exceed £6470.

It's not that. You are basically receiving your tax-free allowances for April, May, June, July and August in one go. Next month if you earn more than £540 you will be taxed as PAYE assumes you will be working for the rest of the tax year,

chrisbur

robertfleckney wrote: »

I finished work in December and started back at Uni for 6 months. I finished for the summer and returned to my old work for 9 weeks of the summer holiday.

Last months wage slip had the usual PAYE tax and NI deductions, however this month the PAYE tax from last months wages was refunded and no PAYE tax deducted.

Is this correct? I am assuming I am not eligible to pay tax yet as my current earnings do not exceed £6470.

Any help would be appreciated, as I don't want to be having to pay this tax back at a later date.

BTW my tax code is 647L.

Thanks in advance,

Rob.

Each month you get 1/12 of your tax free allowance to put against your total income so far that year, and you pay tax on anything over that. So at month 5 you can earn about £2700 on this code and not pay tax. In month 6 this goes up to £3240 before tax is due, and in month 7 to £3780 and so on until you get to month 12 then it is £6479. The month number should show on your payslip somewhere along with you taxable gross to date and until the taxable gross to date is higher than the tax allowance (ie 6479 divided by 12 and multiplied by the month number) for that month no tax is due.

CLAPTON

if you finished work in december 2008, its possible you are owed a tax refund for the tax year 2008-9

robertfleckney

Thanks for the helpful replies folks, it's all making sense now.

:T