is pers allowance pro-rated?

Dazed_and_confused

You are inventing things which don't exist.

The personal allowance is, for most, £11500. It can be less (high earners) but never more.

You might be able to claim expenses against your income. This does not increase your personal allowance.

If you are out of work for more than 4 weeks (and don't claim JSA) you can apply for a tax refund using form P50.

If you apply using form P50 HMRC will calculate the tax due to whenever you claim and refund anything you have paid over and above that. Basically working out the tax like an employer would.

They will send you a new P45 to pass onto any new employer you get (this will reflect any tax refunded by HMRC so you don't get it back from new employer as well as HMRC).

sheramber

The personal allowance covers your total taxable income up to 5 aPRIL 2018.

If you were to be given your total allowance against your 8 months income and got a refund then anything you earn or contribution JSA claimed would be due to be taxed at 20% or 40% depending on your total income.

The only way you would get The full allowance now would be if you would not have any more income before 5 April 2018. e.g if you were emigrating.

In that case what you have earned for the 8 months would be your total income for the year to 5 April 2018.

If you sign on then you hand in your P45 to the Job centre and they will deal with any repayment due when you sign off or after 5 April 2018.

If you do not sign on you can claim a refund on 4 week basis from the tax office. If you are still unemployed after another 4 weeks you can claim again for another 4 weeks pro rata personal allowance and so on until you recommence employment or until the end of the tax year.

agrinnall

Dazed_and_confused wrote: »

The personal allowance is, for most, £11500. It can be less (high earners) but never more.

While you may be technically correct about the personal allowance an individual's tax code can certainly be higher than 1150. We regularly see people with a higher tax code on here, often for washing uniform at home, and I have had mine increased in the past when I was paying a qualifying professional subscription. While the OP's tax code is quite a lot higher than the standard one it's not unreasonable for it to have that value.

MoneySavingMission

thanks for replies.
so I add earnings for year (including JSA if successful)
deduct standard tax allowance (£11,500 - this is the same for everyone so I shouldn't be penalised if this is my only employment this year)
deduct allowable contractor expenses incurred
= taxable income x IT rates v's amount of tax already paid.

00ec25

MoneySavingMission wrote: »

thanks for replies.
so I add earnings for year (including JSA if successful)
deduct standard tax allowance (£11,500 - this is the same for everyone so I shouldn't be penalised if this is my only employment this year)
deduct allowable contractor expenses incurred
= taxable income x IT rates v's amount of tax already paid.

correct

but of course that calculation only works accurately after the end of the tax year when you can say for sure what your income was and what actual expenses you incurred

i hope you can now understand that your 1490 tax code was based on your history of having at least £3,400 of expenses last year, so you got +340 applied to the standard 1150 code. That does not mean your personal allowance was increased to £14,900, it merely means you pay less tax in year on your earnings when the code is applied to the pay calculation

Obviously if you do not have that much expenses again because you have ceased work, your code to date will have been too "generous" and you will have underpaid tax on your earnings that year. You will still get the 11,500 personal allowance, but when you deduct your tax paid figure in your calculation, you may still end up owing a bit of tax if your income at year end (less the PA and actual expenses) exceeds the tax paid to date

MoneySavingMission

Yes, many thanks. I understand my higher code reflected expenses. However, expenses will be as high for this tax year so overall if I don't work again this tax year, i'll be able to use 11,500 + exact expenses once calculated and this should result in a refund.

BoGoF

With that level of expenses I would expect that you will be completing a Self Assessment Tax Return at the year end?

sheramber

MoneySavingMission wrote: »

Yes, many thanks. I understand my higher code reflected expenses. However, expenses will be as high for this tax year so overall if I don't work again this tax year, i'll be able to use 11,500 + exact expenses once calculated and this should result in a refund.

If you sign on any contribution based benefit will also br taxable so needs to be added to your earnings.

MoneySavingMission

Yes, i complete self-asses.