PAYE rebate... Am I correct?

Doctordavies

I was made redundant in June 2009 and set up my own company in July.

In the last three months of my employment (April/May/June) with my old employer I earned £54816.00 and paid £19408.40 in tax.

According to my calculations I should have paid £11856.40 so should be due a rebate?

Debt_Free_Chick

Any tax "overpaid" through PAYE will be offset against any (personal) tax you are due on salary paid by the new company. It will all be sorted when you complete this year's tax return.

If you are confident that your income in the remainder of this year will not generate the extra tax, you could ask your tax office for a refund of what you've paid, to date. However, I'm not sure you will be successful - but I guess it depends on what you've earned so far this year.

Are you drawing a salary from the new company? And are you operating PAYE using the P45 from your old job?

Doctordavies

I set up the new company in July '09 with two other directors. We are operating PAYE and dividends, although when we set up this company my P45 was not submitted, so from month 4 in the tax year (my first wage slip for this new company) shows my earnings so far in year to date as £0

Rolo_Tomasi

You need to give your P45 to the people who are processing your companies payroll. They will input your gross pay and tax and then any refund due will be paid through your wages.

Debt_Free_Chick

Doctordavies wrote: »

I set up the new company in July '09 with two other directors. We are operating PAYE and dividends, although when we set up this company my P45 was not submitted, so from month 4 in the tax year (my first wage slip for this new company) shows my earnings so far in year to date as £0

You should have completed a P46, as it seems you did not pass on your P45 to your new company.

I'm sure it will all be rectified, but you could complete a P46 now or call your personal tax office to let them know your current employment situation.