Income Tax correct

Rhiannon01

I am on tax code 747L CUMUL and have paid £814.20 in tax after being paid £8242.96 so far this year. This is my only job and I work on a casual basis so my wages can differ from week to week. Tax office says I'm on correct code now after being on a code for a 2nd job with no tax allowance for the 1st 3 months of the year despite being in the same job as the previous year.

My question is am I entitled to a refund or do I have to wait until the end of the year and claim my tax back. I'm on PAYE & they say I am paying correct amount of tax. Maybe I'm just looking at it wrongly & thinking I've only earned just over £1,000 over the allowance so am expecting a rebate and then to be taxed 20% on all future earnings but maybe this is not how it works.

Also I will not be working for a couple of months as will be caring for my Mum so will not earn anything then.

Many thanks in advance for your help.

mildred1978

Rhiannon01 wrote: »

I am on tax code 747L CUMUL and have paid £814.20 in tax after being paid £8242.96 so far this year. This is my only job and I work on a casual basis so my wages can differ from week to week. Tax office says I'm on correct code now after being on a code for a 2nd job with no tax allowance for the 1st 3 months of the year despite being in the same job as the previous year.

My question is am I entitled to a refund or do I have to wait until the end of the year and claim my tax back. I'm on PAYE & they say I am paying correct amount of tax. Maybe I'm just looking at it wrongly & thinking I've only earned just over £1,000 over the allowance so am expecting a rebate and then to be taxed 20% on all future earnings but maybe this is not how it works.

Also I will not be working for a couple of months as will be caring for my Mum so will not earn anything then.

Many thanks in advance for your help.

No, that's not how it works.

Your code allows you to earn £7475 per annum tax free. That is divided by 12 if you are paid monthly, 13 if you are paid 4 weekly, or 52 if you're paid weekly. You are then taxed on anything above that amount.

So you pay tax on anything above £143.75 per week at 20%.

When you get your P60 after the end of the tax year (so April/may next year) you can send that into the tax office and they'll look at the whole year and refund you anything due.

Rhiannon01

Thanks you for your swift answer. Guessed I was looking at it wrongly. Guess I will just have to wait to end of the year & probably get over £1,000 back then. Just wish I could have it now.

BoGoF

Depends if you will remain on the payroll whilst you are not working. If you do then you should receive some tax back as you will not be earning. If you have came off the books and received a P45 and don't intend claiming benefit you may be able to claim some tax back after being out of work for a few weeks.

Rhiannon01

I will remain on payroll, just will not get paid for the few weeks I am looking after my Mum.

It's all very confusing as I have a casual job and work part time rather than the full time wages on my payslip. I always pay to much tax each year and now understand how it works and why.

chrisbur

Assuming that the figures you quote are for week 29 then your tax is spot on.

Any time you have no earnings then your employer will do a tax rebate for you and assuming that you remain in this job and it is your only job then your tax will be correct at the year end there will be no rebate due.

Any extra tax you paid at the start of the year must have been rebated back through your pay, have another look at your payslips and if still uncertain list them on here week by week gross tax and net and they will be checked.

Rhiannon01

Thanks Chrisbur. Yes, I took the figures from my pay slip for week 29.

I can see I received money back from when my tax code was wrong at start of the year. I will be going back to the same job after looking after my Mum for a few weeks or so (not sure how long it will be yet). It is my only job.

It is a casual job so I have no set hours. Some weeks I could do up to 60 hours and others I may not get any work at all. So that's the confusion as I wasn't looking at it from the way tax allowance is given per week from my tax code. I am glad I will get a slight amount back while off so that should help to correct the amount of tax.

Thanks for the information from you all, I am starting to understand. Never took much notice as left it all to payroll.

Just wish I could have a tax code for being a casual worker. I always pay too much tax and get a rebate at some point looking back at my pay slips.