Taxation?: Only working for 2nd half of the year.

Loaded_Bachelor

I wonder if anyone can advise me please.

Due to a family bereavement I have not worked or claimed any benefits since the beginning of this financial year, April 2004.

I am looking for a job now. I know that usuallly the employer puts you on an emergency tax code, which generally speaking over taxes you, and then you can claim back any rebate at a later stage. But how does the rebate claim actually happen?

I know that if you ask the IR they will send you a claim form but my question is if I did nothing, i.e. didn't ask for a claim form then would the IR during the following tax year 2005/6 spot that I had only worked for say 6 months the previous tax year and tax me less accordingly to compenaste for it?

Or will they just send me a claim form automatically?

Or will they just do nothing?

Thanks for your help with this.

Rafter

Your new employers PAYE (tax deduction) system should deal with this.

Your P45 from your former employer will show you have earn't nothing and paid no tax so far this year.

Your employers system will then work out what tax you should pay for the balance of the year and ensure you don't end up paying far too much.

Just make sure your new employer has all the details and your P45 and fingers crossed you will get paid the right amount and not have to claim the tax back at the end of the year.

R

Robert_Sterling_3

Won't the P45 show what happened last year rather than this year.
Why not phone the local Inland Revenue. "Fess up" to the position you are in and ask them what you should do to avoid paying any tax until you have earned the amount of the tax free allowance for 2004-2005.

Kazza242

I was in a similar tax position to you a few years ago Loaded_Bachelor.  I had graduated uni and had travelled for a bit before landing my current job in October of that year.

To begin with my tax code was BR.  I approached the Payroll dept. at my workplace who sent off my tax info to the Inland Revenue.  Over the following 2-3 months I did get a refund of some of the tax they had owed me back into my wages.

When I got my P60 for that tax year (in May of the following year), I sent it off to the Inland Revenue with a letter asking them to review the tax year ending 5th April xxxx.  In the letter, I explained that I had been unemployed and was not claiming any benefits between the 6th April xxxx to my first day of employment.

I received a rebate cheque from Inland Revenue for over £1000.

Loaded_Bachelor, you will have to start the ball rolling if you think you're owed a tax rebate.  When you start working check the tax code you are assigned.  If you are assigned a BR tax code then see your company Payroll dept. a.s.a.p. They will usually ask you to fill out some details, which they will send off to the Inland Revenue.  They will usually then adjust your tax code for the year and refund some of the tax you're owed back into your wages.  

When you get your P60, send it off to the Inland Revenue office that deal with your company.  This information will usually be on your payslip.  Also include a letter asking them to review the tax year ending 5th April 2005.  They will want to know whether you had worked or received any benefits between the 6th April 2004 to your first day of employment, so make sure you include these details in your letter.  They will then assess whether you are owed a rebate.