Leaving Job in June, sorting out tax and company car

MartinSpoon

Hi all,

I'm going to be leaving my job in the summer, to go back to university. I currently earn around £50k gross per annum, with a tax code of 547L due to benefits received, therefore pay some tax at 40%. I've worked out that my gross earnings by the time I leave will be around £16k gross.

I've done some rough calculation, and I think I'll end up being due a tax rebate for this FY? I'm not convinced I'm handling the car benefits aspect of it correctly.

Either way, does anyone here have experience of a similar situation? I will get my P45 and know I can at the very least sort out the Tax/NI bit at the end of this FY, but I wasn't sure about the benefits. Will I get a version of a P11d when I leave also?

Thanks

MartinSpoon

I forgot to add.. I'll also be paying student loan repayments for that period as well, but as I'll end the year barely over the threshold, is there a correction there also? Somehow I think that's less likely?

MartinSpoon

Here are my rough calculations, but these were all done using the tax code 547L. What I can figure out in my head is if I should be using the same tax code for my approx 3 months employment this year, or if I should be using a different one. Pension contributions are deal with pre-tax. All calculated using listentotaxman.


£50k gross with 547L

12 month totals:
Tax = £11,406
Student Loan = £3,027
NI = £4,214

Therefore in 3 months I will be taxed:
Tax = £2,852
Student Loan = £757
NI = £1,053


£16k gross with 547L (calculated as total earnings for the FY)
Tax = £2,104 (-£748)
Student Loan = £0 (£-757)
NI = £990 (-£63)


Like I say, I'm not sure if I should be using 547L in my second example :undecided

Dazed_and_confused

MartinSpoon wrote: »

Here are my rough calculations, but these were all done using the tax code 547L. What I can figure out in my head is if I should be using the same tax code for my approx 3 months employment this year, or if I should be using a different one. Pension contributions are deal with pre-tax. All calculated using listentotaxman.


£50k gross with 547L

12 month totals:
Tax = £11,406
Student Loan = £3,027
NI = £4,214

Therefore in 3 months I will be taxed:
Tax = £2,852
Student Loan = £757
NI = £1,053


£16k gross with 547L (calculated as total earnings for the FY)
Tax = £2,104 (-£748)
Student Loan = £0 (£-757)
NI = £990 (-£63)


Like I say, I'm not sure if I should be using 547L in my second example :undecided

Your tax code will only be used by your employer and isn't relevant for working out any refund claimed from HMRC. They will calculate your tax using the personal allowance and any benefits applicable for 2013:14.

If you are not planning on working again this tax year you could make a claim using a HMRC form called P50. If you are going to have a job (even just part time bar work etc) whilst at university then you should hand your P45 in to the new employer and they will refund any tax due back when they pay.

If you are going to get a job but not until, say, Christmas, you can claim an interim refund from HMRC a month after you have been unemployed (student) and you will get a new P45 to hand in to any new employer. I think you can repeat this once a month till the end of the tax year or when you start a new job.

If you are returning your company car when you leave your current job then you should advise HMRC of this and let them know the date the car was returned so they can estimate the benefits you have had in the current tax year. I don't think your employer will give you a P11D certificate now but if you keep in touch they should be able to let you have one after the end of the tax year.

If you claim a refund after you leave you can then check if you need to pay anything back (HMRC underestimate the benefits) or are due a further refund (HMRC overestimate the benefits).

NIC is worked out month by month so don't think you can claim anything for this.

Never had student loan so don't know how these work sorry.

MartinSpoon

Dazed_and_confused wrote: »

....

Thank you for such a detailed response! I did have a look on HMRC for a form like the P50, but didn't find it before. Had a look at it, and typically, some of the wording is ambigious!