Changing to a lower paid job, what happens with tax overpayment?

moneyballs2

I had a quite high paying job for 5 months in which I paid £2100 of Tax. This was through PAYE

My new job has a salary that will tax me £2000 (rough estimate, this is from an online tax calculator.) So I have paid my yearly allowance of tax.

How will this tax be returned to me? Will it be in a rebate, or as I go along over the months of the remaining financial year?

I understand that I will be paying more than £2k of tax this year, as the higher salary job needs to be taken into account.

Thanks

InsideInsurance

If you give them your P45 it should all happen smoothly as they can see your pay to date and tax.

If you dont have your P45 then complete a P60 correctly and it may just take a little longer but there is plenty of time before end of March for them to get everything processed and adjust your tax according to the anticipated total years earnings

McKneff

moneyballs2 wrote: »

I had a quite high paying job for 5 months in which I paid £2100 of Tax. This was through PAYE

My new job has a salary that will tax me £2000 (rough estimate, this is from an online tax calculator.) So I have paid my yearly allowance of tax.

How will this tax be returned to me? Will it be in a rebate, or as I go along over the months of the remaining financial year?

I understand that I will be paying more than £2k of tax this year, as the higher salary job needs to be taken into account.

Thanks

What do you mean, 'you have paid your yearly amount of tax'

No one pays a yearly amount of tax, you are given a yearly tax allowance, you are allowed to earn £8105 per year and any money you earn over that amount you pay 20% tax on.

Tax paid is dependant on what you earn. It is not a set amount.

MissSarah1972

moneyballs2 wrote: »

I had a quite high paying job for 5 months in which I paid £2100 of Tax. This was through PAYE

My new job has a salary that will tax me £2000 (rough estimate, this is from an online tax calculator.) So I have paid my yearly allowance of tax.

How will this tax be returned to me? Will it be in a rebate, or as I go along over the months of the remaining financial year?

I understand that I will be paying more than £2k of tax this year, as the higher salary job needs to be taken into account.

Thanks

Add what you have earnt in the 5 months to what you will earn in the new job in the remaining months and put that into a salary calculator.