Can someone help with my tax rebate estimate?

DanH84_2

Hey all,

I've finally been shifted on to a cumulative tax code by HMRC and I'm due some tax back for the beginning of the year.

My employer has confirmed they've moved me across but they haven't let me know how much I can expect to get yet so I'm trying to work out a rough estimate.

Could someone have a quick glance over my calculations please?

I'm on tax code 810l:

Tax free allowance is approx £675 a month.

I was unemployed from 30/03/12 to 08/07/12.

Disregarding the previous tax year and odd couple of days that's 3 months of unemployment.

April/May/June x£675 = £2025

During this period I received c£600 in Jobseekers Allowance (I also received hb and ctb but I understand these can be disregarded).

£2025-£600
=£1425

Since I began with my employer I have been taxed on 810l non cumulative so I don't believe my earnings with them will have an effect on this calculation as it wouldn't lead to any further under/overpayment?

Does this make sense? Will it be a case that I don't pay any tax on my earnings for the first couple of months and then it goes back to usual? Or will they divide the amount over the remaining 7 periods of the year ie(if my amounts are correct) approx £204 a month back?

Thanks for helping to clear this up for me

chrisbur

DanH84 wrote: »

Hey all,

I've finally been shifted on to a cumulative tax code by HMRC and I'm due some tax back for the beginning of the year.

My employer has confirmed they've moved me across but they haven't let me know how much I can expect to get yet so I'm trying to work out a rough estimate.

Could someone have a quick glance over my calculations please?

I'm on tax code 810l:

Tax free allowance is approx £675 a month.

I was unemployed from 30/03/12 to 08/07/12.

Disregarding the previous tax year and odd couple of days that's 3 months of unemployment.

April/May/June x£675 = £2025

During this period I received c£600 in Jobseekers Allowance (I also received hb and ctb but I understand these can be disregarded).

£2025-£600
=£1425

Since I began with my employer I have been taxed on 810l non cumulative so I don't believe my earnings with them will have an effect on this calculation as it wouldn't lead to any further under/overpayment?

Does this make sense? Will it be a case that I don't pay any tax on my earnings for the first couple of months and then it goes back to usual? Or will they divide the amount over the remaining 7 periods of the year ie(if my amounts are correct) approx £204 a month back?

Thanks for helping to clear this up for me

This is not a very reliable way to work it out but if we assume that all your figures are correct then as you say you have about £1425 in unused tax allowace which if we assume you are paying at 20% will give a £285 reduction in your tax. So if you would normally pay £200 tax next month then you would get a rebate of £85.
To get a more accurate idea it would be better to give your taxable gross and tax paid to date along with the month number from your last payslip. The JE can then be added to this to work out what your tax should have been on cumulative. If you can give an indication of next months taxable gross then the tax rebate can be worked out.

DanH84_2

Hi,

Thanks for the initial response.

My August payslip (most recent) shows:
YTD
Gross Pay: 3095
Taxable Pay: 3547 (not sure why this is higher than Gross)
Tax Paid: 320

Tax Period 05

My September Gross should be approx £1790.

Hope that all makes sense.

chrisbur

DanH84 wrote: »

Hi,

Thanks for the initial response.

My August payslip (most recent) shows:
YTD
Gross Pay: 3095
Taxable Pay: 3547 (not sure why this is higher than Gross)
Tax Paid: 320

Tax Period 05

My September Gross should be approx £1790.

Hope that all makes sense.

No idea why your gross is lower than your taxable gross. Can think of reasons why it might be the other way round but off hand cannot think of any reason for this. I would ask the payroll dept about it.
The dates you have given suggest you have been employed for two months but the tax figure you have given suggests that around three months emergency tax allowance has been used. Can you advise taxable pay tax paid and month number for all wages recieved so far.

DanH84_2

chrisbur wrote: »

No idea why your gross is lower than your taxable gross. Can think of reasons why it might be the other way round but off hand cannot think of any reason for this. I would ask the payroll dept about it.
The dates you have given suggest you have been employed for two months but the tax figure you have given suggests that around three months emergency tax allowance has been used. Can you advise taxable pay tax paid and month number for all wages recieved so far.

Hi,

July: Gross £1318, Txable £1256, Tax Paid £116, NI £70, Tax Period 4

August: Gross £1776, Taxable £1693, Tax Paid £203, NI £118 Tax Period 5

I did claim a mid monthly advance of £577 but this was paid as a lump sum and then deducted as such in my august pay.

Thanks for your help.

sweetietot

Did you give P45 from the Job Centre to the employer?
The taxable pay to date may include the JSA you received as the taxable from your 2 payslips is £2949 plus the approx £600 JSA looks about right.
Doesn't really explain why employer was using non-cumulative code if they had P45

DanH84_2

I did yep. The p45 did say it was on a month 1 basis though. Might be because even though I was unemployed I didn't claim straight away as I had some savings so I guess there was a period of the tax year they were unsure of.
Thanks

chrisbur

DanH84 wrote: »

Hi,

July: Gross £1318, Txable £1256, Tax Paid £116, NI £70, Tax Period 4

August: Gross £1776, Taxable £1693, Tax Paid £203, NI £118 Tax Period 5

I did claim a mid monthly advance of £577 but this was paid as a lump sum and then deducted as such in my august pay.

Thanks for your help.

These figures show taxable pay as being lower than gross and add up to 2949 taxable gross so you need to speak to payroll to see where the 3547 taxable pay is coming from.
Is there a previous gross column on your payslip, if so does it have an entry?
When you handed in your P45 to your new employer did you keep part 1A or did you give them that as well, as part 1A would be the only part that had figures on it?

DanH84_2

I kept part 1a but then sent it to the tax office along with a covering note so they would have all the information they needed to send a cumulative coding notice to my employer.

I've just looked at the copy they've returned to me though and it shows my JSA was £598 which totals £3547 so it does indeed seem to balance out.

There's a possibility they may have requested that info from me previously, or they may just have received the infor from the tax office soon enough to amend my gross pay ytd but after the cut off to change me to cumulative for that month.

chrisbur

The tax code and previous pay would be advised together so it is possible that your employer changed one but not the other, so would check with them on that.

Assuming the 3547 is your total taxable pay (including jobseekers) to month 5 and you then get 1790 you have a total taxable at month 6 of 5337 from which you take 6/12 of 8105 which leaves 1284 which at 20% tax is 256.80 tax due. You have paid 320 so rebate due of aprox 63.