We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Leaving my job in August, how do I not overpay tax?
jnam27
Posts: 1 Newbie
Hi, question about overpaying tax.
I'm leaving my job in August. In fact, I'm also leaving the country so for 2015/2016, I will only earn from April to August. I took a look at last year's payslips and I was taxed every month at the 14% rate on gross (which is 20% of taxable if there are 12 months of similar earning).
I would like to earn my 10,600 tax free this tax year. If I pay 14% each month but only earn for 5 months, then I actually haven't had enough earning months to accrue the tax free income (I will have accrued just 40% of the allowable tax free income).
Is there something I can do prospectively or is this only a retrospective action? Your experiences would be very helpful. Cheers,
I'm leaving my job in August. In fact, I'm also leaving the country so for 2015/2016, I will only earn from April to August. I took a look at last year's payslips and I was taxed every month at the 14% rate on gross (which is 20% of taxable if there are 12 months of similar earning).
I would like to earn my 10,600 tax free this tax year. If I pay 14% each month but only earn for 5 months, then I actually haven't had enough earning months to accrue the tax free income (I will have accrued just 40% of the allowable tax free income).
Is there something I can do prospectively or is this only a retrospective action? Your experiences would be very helpful. Cheers,
0
Comments
-
Hi, question about overpaying tax.
I'm leaving my job in August. In fact, I'm also leaving the country so for 2015/2016, I will only earn from April to August. I took a look at last year's payslips and I was taxed every month at the 14% rate on gross (which is 20% of taxable if there are 12 months of similar earning).
I would like to earn my 10,600 tax free this tax year. If I pay 14% each month but only earn for 5 months, then I actually haven't had enough earning months to accrue the tax free income (I will have accrued just 40% of the allowable tax free income).
Is there something I can do prospectively or is this only a retrospective action? Your experiences would be very helpful. Cheers,
Your percentage calculations are not really that relevant - someone who earns £11000 per annum will pay 0.72% of his gross in tax while a £20000 salary will pay 9.4% in tax. The personal allowance is what is important.
You need to complete the attached form. As a result you would be correct in saying that your 10600 personal allowance will be applied to the income from April to August inclusive. Assuming that you are a basic rate taxpayer you should be entitled to a refund of approximately £1236 (10600 x 7/12 @20%). This assumes, of course, that you have paid this much in tax.
https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85There are 10 types of people in the world - those who understand binary and those who do not. :doh:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.4K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards