Tax Query

LouBlue

Hi, newbie here - apologies if this is in the wrong Board.

I left work early September 06 due to acute stress. I decided not to go back and gave a months' notice which was covered by a medical certificate from my doctors. This was all agreed with no complications. I decided not to sign on, which was probably foolish as 5 months on, I am still not at work (not due to illness, I just wanted a break!) and could have done with the money. I am now actively looking for a job and have my P45 to hand.

My mum seems to think I will have some tax due back to me when I start my new job? Does anyone know if this is the case? I have been working for the past 22 years (bar the last 5 months), have never signed on, and have always paid my NI and Income Tax.

Many thanks for any help.

RDA

Everyone is entitled to earn a certain amount of money 'tax free' in each tax year. This is called the personal allowance and for most people this is £5035 this year.

When you resume work (providing it is during the current tax year), your P45 will be used by your new employer to calculate any income tax due or overpaid.

Because of the way income tax is calculated, you are likely to have paid more tax than you should have, so your new employer will refund any overpayment, providing you resume work in the current income tax year.

There is a possibility that you may need to reclaim the overpayment directly from HM Revenue & Customs at the end of the year, depending on your circumstances.

Your Tax Inspectors office will happily help you with this if you call the number shown on the last Notice of Coding (P2) you received from them. If you don't have this form, visit the HMRC web site here to find your local enquiry centre.

You should also sign on as soon as possible to ensure that your State Pension entitlement is not affected by underpayment of National Insurance contributions.

LouBlue

Thank you so much for the prompt and helpful reply! I have a few job interviews set up so hopefully should be in employment soon and if I got a tax rebate, it would be a great way to start the year! :j

LouBlue

Result! Rang my local tax office, gave them my NI number etc...and he worked out I am probably due about a £600 tax rebate! Just the cost of a phone call and he was extremely helpful. :j