Not working for part of year, then employed...

ianmianmianm

Hi everyone,
Apologies if this is obvious but I can´t find a clear answer from a search.
I stopped working on 31/3 this year (4 days before the end of the tax year) and used my savings to do a bit of itinerant wandering in Europe. I´ve not earned any money while away and not claimed any benefits or credits while away.


I will be returning to work in December, salary about 30k p/a. What I can't figure out is whether I will be taxed on the whole income across the tax year (in other words, I will have gross earnings of about 10k - so not taxed at all) or whether the tax kicks in pro-rata (I would be taxed per month at the rate 1/12th of what it would have been had I been working)


Sorry for potentially silly question - does that make sense??
Ta
ian

patanne

The proper answer to this is if you only earn £10k over the whole tax year then you will pay no tax. However, in practice you will probably have a month 1 / week 1 tax code initially that will take tax, but that will be refunded once you get the correct code of 1000L (not 1000LX).

Not a silly question as NI contributions work the other way & no refunds would be due.

ianmianmianm

wonderful, thank you: quick, clear, awesome x

patanne

You are new so I should warn you that most of us are just interested amateurs, so you should wait and see that others come on and agree with what I have said.

purdyoaten

patanne wrote: »

You are new so I should warn you that most of us are just interested amateurs, so you should wait and see that others come on and agree with what I have said.

The interested amateur is up to speed! The only issue would be where it was not sorted out by the end of the tax year when the op should write to HMRC, explain the circumstances, enclose form P60 and ask for a review of income tax liability for 2014/15.

chrisbur

When you finished work on 31/3 did you receive any wages which were paid after 5 April?
Did your old employer issue a P45 if so what were the details?
Are you starting work with a new employer, re-starting with old employer IE as if it was a new job and P45 issued when you left or just returning to work with your old employer IE had a long unpaid holiday and no P45 issued?