Claiming back tax when retiring?

Martin660

Hey guys

My mum is retiring in September and her last shift is this Sunday.

I have a question regarding tax. I have a feeling that tax is worked out on a yearly basis (April to April) and then the amount deducted from wages each month is an equal share of that?

So far from April - now my mum has earnt £5949 taxable income from her job, for that she has paid £305 tax.

I've put these figures into the overpayment calculator and it says "You could be due a refund of £311" which is obviously not right!

I know she has to fill out a P50 form and send it off to claim a tax refund, but I'm just wondering if there is any point doing this/if she is actually entitled to claim any tax back?


Cheers guys

bigadaj

If this is her last income for the tax year then she could fill in a form and claim it back, or it would be calculated in April next year and be refunded.

Presumably your mother will have some other form of income, from pensions, savings or elsewhere, and this will be taxable, so it may be that this will negate any refund that is due.

Martin660

Cheers

Yeah she's just going to be getting the basic state pension, so I don't think she will be taxed on that.

I'll get her to fill in the form and send it off. :j

greenglide

If she has never been in a contracted out pension scheme and has worked all or most of her working life (including HRP while getting child benefit) then she could have a reasonable entitlement to Additional Pension from GRAD / SERPS / S2P. This could easily give a total State Pension of £130 or higher.

The state pension is taxable but is always paid gross. Under these circumstances there may still be a small amount of tax due for the year or only a very small to refund. HMRC would do this automatically after the tax year end.