Tax rebate?

RB2012

Hi All,

Any help / advice greatly appreciated...

My girlfriend has recently left her job (20th July 2012) she is probably going to re-study for the foreseeable future so may not be going back to work this tax year. My question is will she get a rebate on the tax she has paid for the period April 2012 - July 2012. She was earning around £27,000 a year.

If so, how does it work? Does she just wait for this tax year to end the inland revenue will send her a cheque? or should we actively chase it now?

Thanks
RB

[Deleted User]

she will have had her tax allowance every month and only paid the tax due each month,therefore no rebate will be due

chrisbur

Assuming she has no taxable income eg jobseekers allowance then the form needed is a P50 which you can get here
http://www.hmrc.gov.uk/pdfs/p50.pdf
If not getting any taxable income for rest of this year then can be filled in for the full year, otherwise can be filled in every four weeks untill have income again, the tax all gets repaid or the tax year ends.

p00hsticks

woodbine wrote: »

she will have had her tax allowance every month and only paid the tax due each month,therefore no rebate will be due

No, this isn't strictly true - the PAYE system assumes that you carry on working over the entire year, so she will only have had a twelfth of her annual allowance each month. If she has now stopped working, then the unallocated allowance for the remaining part of the year can be applied to her earnings so far, leading to a rebate being due.

As chrisbur says, she needs to get in touch with HMRC

skintandscared_2

The tax year runs from 6th April to the following 5th April. I didn't think rebates could be applied for until after the end of the tax year in which the tax has been paid. How do HMRC know that no further taxable work will be done during that year otherwise?

[Deleted User]

p00hsticks wrote: »

No, this isn't strictly true - the PAYE system assumes that you carry on working over the entire year, so she will only have had a twelfth of her annual allowance each month. If she has now stopped working, then the unallocated allowance for the remaining part of the year can be applied to her earnings so far, leading to a rebate being due.

As chrisbur says, she needs to get in touch with HMRC

its called paye(pay as you earn)because thats what you do,you dont pay if you dont earn

Caz3121

woodbine wrote: »

its called paye(pay as you earn)because thats what you do,you dont pay if you dont earn

When calculating PAYE the tax code is divided by 12 and applied monthly so after 3 months she will only have had 3/12ths of her tax code
On £27k she would have paid £315 tax per month - so £945
If that was the only income for the tax year (£27k/4) then no tax would be due so it would be refunded
In OPs case it was between 3 and 4 months but if earnings were below personal allowance a full refund will be made

RB2012

Thanks to all for responding.

I think Caz's / ChrisBur's explanations sound most logical and concur with what I assumed.

I didn't know about the P50 form so will have a look at that.

Thanks again for your help.

Cheers

Horseunderwater

Yes but you can only apply at the end of the tax year after April 5th 2013. You will need to wait for P60 from last employer as the ultimate proof of tax paid. It is not always stated on a P45 which is normally the instrument to move from employer to employer or benefit/pension payments. The P60 may have what is called an R after the tax deducted amount, which means that tax will be due back, sometimes it happens automatically. Depends on employer. But that is how it was done when I worked there.

chrisbur

Horseunderwater wrote: »

Yes but you can only apply at the end of the tax year after April 5th 2013. You will need to wait for P60 from last employer as the ultimate proof of tax paid. It is not always stated on a P45 which is normally the instrument to move from employer to employer or benefit/pension payments. The P60 may have what is called an R after the tax deducted amount, which means that tax will be due back, sometimes it happens automatically. Depends on employer. But that is how it was done when I worked there.

Under certain circumstances for example those described by the OP you can apply for a tax rebate during the tax year. The instructions on the P50 list when you can use it, from the P50....
"
Use this form to claim tax back if:


• you have been unemployed
for four weeks or more, or

• you
are not claiming one of the taxable benefitslisted below,

or• you do not expect to go back to work,

or• you have retired permanently and

are not receiving apension from your old employer,

or• you have returned to full-time study."

If you have finished employment before the tax year end then there will be no P60 issued so it would be no good waiting for that before you requested a tax refund.

An R on the P60 has nothing to do with a tax rebate being due or not; it shows that the figure next to the R was a tax rebate, rather than tax deducted.