Been on BRM1 tax rate for 3months, now had to leave job, how and what rebate do i get

Angel89_2

Hi i started getting paid for my employment from mid June onwards.

Was put on BRM1 rate though, so been paying roughly 35% of my income out in tax and NI ect...


I was last week forced to resign/have my probabtion ended,
however will be getting about £1,000 more i get paid on 10th working day after month ended,
so around 13th October il be getting £700 of holiday leave (7days), plus £400 of the 4days i worked this month, plus £220 for 2 extra days that i got put on rota for even though they had already told me that i had to resign.


So around £1,320 more coming in through my final PAYE paycheque on 13th october.




The issue that im having is that ive got my PAYE form today and it shows:

Gross income to date- £4506
Tax to date- £901



I know that the tax free band for this year is £6,475,
and so even after the £1,320 gross pay for next month il still be under that band allowance,
and therefore shouldnt have paid ANY tax whatsoever. :mad:



I sent my employer my P46 back at start of August, and they said they had sent it off to the government tax department.

But ive had 2 PAYES since then, both still doing me at this BRM1 rate. :mad:



So i have 2 questions-

1. If by mid October the tax office still haven't sorted it out,
and so my final PAYE does me for a BRM1 again,
and i wont be getting anymore PAYES after that so wont be getting my money back through that route...

What would the procedure be for me to get my money rebated 'manually' myself please??


2. Will they see that ive earnt under the tax free allowance for the year, and so rebate me the £901 + about £250 that il pay on the £1,320 in a lump sum through a cheque or bank transfer into my bank??

Or

Will they just re-do these last few months payments down to the normal tax rate,
and then if im still unemployed and on JSA by April next year i will then have to get some more forms and send them off to say that ''The years up, ive earnt less than personal allowance, so FULL tax rebate time''??

And only then will i get the full tax rebate back?



Thanks

fengirl_2

This form which you received showing pay of £4506 - what form is this? If we could know this, we can give you a proper answer to your main question.

To answer your other question, the £6475 tax free allowance is for the whole year and is spread throughout the year. You don't earn £6475 and pay no tax, then pay 20% tax. The £6475 is divided into 12 so you get £503 tax free each month with the rest being taxed at 20%.

Angel89_2

fengirl wrote: »

This form which you received showing pay of £4506 - what form is this? If we could know this, we can give you a proper answer to your main question.

To answer your other question, the £6475 tax free allowance is for the whole year and is spread throughout the year. You don't earn £6475 and pay no tax, then pay 20% tax. The £6475 is divided into 12 so you get £503 tax free each month with the rest being taxed at 20%.

The form showing £4506 total gross so far is my latest PAYE 'payslip'.


And i understand about how tax is spilt up into 12monthly tax allowances,
instead of no tax for a few months,
and then tax kicks in.

But surely if by year end you have only earnt £6,000, but have been paying tax each month through that year,
you would get all that tax refunded as you are below the tax-free allowance for the year?

fengirl_2

If you are going to be claiming JSA, then the Job Centre will refund any overpaid tax either when you sign off or at 5 April, whichever comes first. Neither your employer nor the Job Centre can foresee what your income is going to be for the rest of the year, so they can't make a tax refund in advance.

Angel89_2

fengirl wrote: »

If you are going to be claiming JSA, then the Job Centre will refund any overpaid tax either when you sign off or at 5 April, whichever comes first. Neither your employer nor the Job Centre can foresee what your income is going to be for the rest of the year, so they can't make a tax refund in advance.

Ah ok thankyou.

How would the jobcentre do it though,
since they dont issue PAYE payslips??

fengirl_2

They just credit your bank account with the money. Then you get a revised P45 with your previous pay, taxable JSA and any tax not refunded on it.