Claim back PAYE tax

mulmul

Hi

I have recently changed job, now working for an agency in a company. I was previously on JSA, after I signed off and got my P45, I handed to my agency. First week I was put in 747L code, which is normal. But I thought if my income in year has not reached £7470, I do not need to pay for any PAYE tax.

Should I contact my agency or Inland revenue in regard to this?

Because I already spoke to my agency , she told me if I think I paid too much tax I need to contact inland revenue instead, but I told her I have not earn enough yet to be taxed.

Need some clarification and help on this .

Also would I be legible for WTC (working Tax Credit ) ? I only work 37.5 hrs a week, £7 p/h before tax.

thx :beer:

Caz3121

PAYE is calculated as pay as you earn....it is not a case of paying no tax till you reach £7470 and then start paying tax. If you handed in your P45 then it should be sorted out over the next couple of months - you may find tax deducted in the first month and then refunded the next month - keep an eye on your "taxable pay to date" and your "tax paid to date"...remember some benefits are taxable (contributions based JSA is taxable) so this would be added on to your earnings to date.

If you are over 25 you should qualify for some WTC

MrsManda

The 747L tax code means you can earn £7475 in a year without paying tax. However this is spread across the year, for example if you are paid monthly you are able to earn ~£622 each month without paying tax then the rest is taxed at 20% (until you're earning over £42000).

If you have overpaid tax you will get a refund in your pay or you can reclaim it at the end of the financial year.

mulmul

Caz3121 wrote: »

PAYE is calculated as pay as you earn....it is not a case of paying no tax till you reach £7470 and then start paying tax. If you handed in your P45 then it should be sorted out over the next couple of months - you may find tax deducted in the first month and then refunded the next month - keep an eye on your "taxable pay to date" and your "tax paid to date"...remember some benefits are taxable (contributions based JSA is taxable) so this would be added on to your earnings to date.

If you are over 25 you should qualify for some WTC

oh that make more sense, my main concern is that what if I constantly changing jobs, I jump from agent to agent. At what point can I start claiming those over paid tax?

Also after current 6 months contract ened, I might moved to another country and stay there for 2-3 years.

McKneff

No offence to the OP, i mean this generally, I am astounded that people who are working (or not) have no basc grasp of tax and national insurance.

If somebody is taking hundreds of pounds off my salary per month I would want to know all the blumming ins and outs and that they were taking the correct amount.

paddedjohn

Caz3121 wrote: »

PAYE is calculated as pay as you earn....it is not a case of paying no tax till you reach £7470 and then start paying tax. If you handed in your P45 then it should be sorted out over the next couple of months - you may find tax deducted in the first month and then refunded the next month - keep an eye on your "taxable pay to date" and your "tax paid to date"...remember some benefits are taxable (contributions based JSA is taxable) so this would be added on to your earnings to date.

If you are over 25 you should qualify for some WTC

why would they be eligable for WTC? the op earns £262.50 before tax/ni.

mulmul

paddedjohn wrote: »

why would they be eligable for WTC? the op earns £262.50 before tax/ni.

This is another thing I dont quite understand, due to my Work each week working hours is vary, like last week I worked 30 hours, but this week 45 hours. ( working hours was set by agent). As I get pay one week in arrears. So one week I pay less PAYE tax and one week (this week) I pay almost double :eek:

MY PAYE allowance is £143.75 p/w

My last agent before this, never took any tax away, according to my payslip, which I also found very strange