Tax refund or not?

Maros

Hi,

Last june I took voluntary redundancy, my redundancy was 88k and I paid 27k tax on it (tax code 0T). I have not managed to find a job since then and have claimed no benefits at all.

My understanding was that I could claim some or all of that tax back if I was in this situation but am unsure on that and a search of the hmrc website was less than fruitful.

Can anyone confirm if I am able to claim anything back?

Thanks in advance

McKneff

If you have all your earnings to hand for last year including any JSA add them altogether. (ecluding the redundancy payment)

Deduct £7475 (tax allowance)

You should pay 20% tax on the difference.

Compare that figure to what you actually paid in tax,

All the above assumes you are not a higher rate tax payer of course.

kidmugsy

But he's likely to be a higher rate tax payer since (probably) only the first £30k of the redundancy cash is tax-free, leaving £58k exposed to tax.

chrisbur

Maros wrote: »

Hi,

Last june I took voluntary redundancy, my redundancy was 88k and I paid 27k tax on it (tax code 0T). I have not managed to find a job since then and have claimed no benefits at all.

My understanding was that I could claim some or all of that tax back if I was in this situation but am unsure on that and a search of the hmrc website was less than fruitful.

Can anyone confirm if I am able to claim anything back?

Thanks in advance

Cannot give any idea of amount without full details of taxable income for the year (including any savings interest that may have higher rate tax due on them) and tax paid. But assuming you do not have a lot of savings interest which you owe tax on then you are certainly due some rebate.

Maros

Thanks for the responses guys.

Few more details, previous to the redundancy payment I recieved £4.4k in wages and was taxed £630. I received no other wages since and have no other income.

I did put a tax return in and received back the £630 but like I said I was under the impression that some or all of the tax I paid on my redundancy would be returned so before I contact hmrc I thought I would ask the experts.

Thanks again.

McKneff

kidmugsy wrote: »

But he's likely to be a higher rate tax payer since (probably) only the first £30k of the redundancy cash is tax-free, leaving £58k exposed to tax.

Thats why, as an afterthought, I added the text about the 40% tax.

OP, did you not claim any Job seekers allowance or any non means tested benefits.

Maros

@McKneff

No I havn't claimed anything.

chrisbur

If I understand correctly then your total taxable income for 11/12 was £58000 taxable part of redundancy and £4400 earnings up to redundancy. So total taxable was £62400. Tax due on this would be £14968 assuming tax code of 747L so as total tax paid was £27000 then about £12000 due back. This assumes that you had no taxable benefits in your job, but even if you did I would think there is still a decent rebate due back.

Maros

Thanks Chrisbur, wasnt sure about it all but that makes complete sense.
:beer:

McKneff

If you are job hunting you should be claiming JSA or at least signing on to get your NI credits, these go towards getting benefits and also towards your state pension.