Taking a break from work

[Deleted User]

Hi

Following my wife's passing and because my job no longer fits in with my plans going forward I have handed in my notice and stop work at the end of August.

I will be taking a "gap year" to sort things out before looking for a new job in August 2025.

I won't be entitled to any benefits or unemployment and will live off savings.

My question is do I need to inform anyone that I will not be working for a year? Do I need to inform the tax man or will it work itself out at the end of the tax year?

Thanks in advance.

DE_612183

depends on how much you've earned this year - you'll probably get a tax refund.

your current employer will inform HMRC.

I presume you are employed - not self-employed or working through a ltd company?

Brie

Sorry for your loss.

HMRC will notice when you stop being paid and will then let you know eventually about any refund that you have coming.  Likely after the end of the tax year.    

You might be able to apply for Job seekers allowance when you decide to start looking for a new role.  Not a lot of money and possibly not worth the aggravation but just a thought. 

[Deleted User]

DE_612183 said:

depends on how much you've earned this year - you'll probably get a tax refund.

your current employer will inform HMRC.

I presume you are employed - not self-employed or working through a ltd company?

Yes employed. Will have earned slightly over my personal allowance by the time I stop work.

[Deleted User]

Brie said:

Sorry for your loss.

HMRC will notice when you stop being paid and will then let you know eventually about any refund that you have coming.  Likely after the end of the tax year.    

You might be able to apply for Job seekers allowance when you decide to start looking for a new role.  Not a lot of money and possibly not worth the aggravation but just a thought. 

Thanks.

The hoops to jump through for JSA would put me off. Will probably just live of savings until I get a job. I'm in the fortunate position that I can afford to.

sheramber

Remember to consider your National I Insurance contributions will no longer be paid so you need to check if you need to make voluntary contributions to safeguard your state pension.

If you do not intend to work or claim benefit before April 25 you can apply to HMRC  for an in year repayment.

https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

Alternatively, HMRC will pick it up after April 25 and repay it, probably around next summer:autumn

[Deleted User]

sheramber said:

Remember to consider your National I Insurance contributions will no longer be paid so you need to check if you need to make voluntary contributions to safeguard your state pension.

If you do not intend to work or claim benefit before April 25 you can apply to HMRC  for an in year repayment.

https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

Alternatively, HMRC will pick it up after April 25 and repay it, probably around next summer:autumn

Thanks

I have already qualified for full new state pension so am good on that front. I don't plan on working any more this financial year so will probably put in a claim later in the year to get back tax.

Undervalued

[Deleted User] said:

sheramber said:

Remember to consider your National I Insurance contributions will no longer be paid so you need to check if you need to make voluntary contributions to safeguard your state pension.

If you do not intend to work or claim benefit before April 25 you can apply to HMRC  for an in year repayment.

https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

Alternatively, HMRC will pick it up after April 25 and repay it, probably around next summer:autumn

Thanks

I have already qualified for full new state pension so am good on that front. I don't plan on working any more this financial year so will probably put in a claim later in the year to get back tax.

Remember the rules can change, they certainly did during my working life! I don't know how far you are from the current state pension age or how many years of NI credits you have, over and above the current requirement? However it is worth keeping a close eye on it.

[Deleted User]

Undervalued said:

[Deleted User] said:

sheramber said:

Remember to consider your National I Insurance contributions will no longer be paid so you need to check if you need to make voluntary contributions to safeguard your state pension.

If you do not intend to work or claim benefit before April 25 you can apply to HMRC  for an in year repayment.

https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

Alternatively, HMRC will pick it up after April 25 and repay it, probably around next summer:autumn

Thanks

I have already qualified for full new state pension so am good on that front. I don't plan on working any more this financial year so will probably put in a claim later in the year to get back tax.

Remember the rules can change, they certainly did during my working life! I don't know how far you are from the current state pension age or how many years of NI credits you have, over and above the current requirement? However it is worth keeping a close eye on it.

52 now and had full NSP at 50. Will be keeping an eye on things going forward.

Fully intend going back to work, just not until August 25 at the earliest so plenty time to add more years.

Marcon

[Deleted User] said:

Undervalued said:

[Deleted User] said:

sheramber said:

Remember to consider your National I Insurance contributions will no longer be paid so you need to check if you need to make voluntary contributions to safeguard your state pension.

If you do not intend to work or claim benefit before April 25 you can apply to HMRC  for an in year repayment.

https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

Alternatively, HMRC will pick it up after April 25 and repay it, probably around next summer:autumn

Thanks

I have already qualified for full new state pension so am good on that front. I don't plan on working any more this financial year so will probably put in a claim later in the year to get back tax.

Remember the rules can change, they certainly did during my working life! I don't know how far you are from the current state pension age or how many years of NI credits you have, over and above the current requirement? However it is worth keeping a close eye on it.

52 now and had full NSP at 50. Will be keeping an eye on things going forward.

Fully intend going back to work, just not until August 25 at the earliest so plenty time to add more years.

Are you quite sure of that? Like very many people you are under 'transitional' arrangements, and will only have had a maximum of 34 years by age 50, so although it's possible it is not always clear or certain. Might be worth checking just in case?

https://www.gov.uk/check-state-pension

Dazed_and_C0nfused

[Deleted User] said:

sheramber said:

Remember to consider your National I Insurance contributions will no longer be paid so you need to check if you need to make voluntary contributions to safeguard your state pension.

If you do not intend to work or claim benefit before April 25 you can apply to HMRC  for an in year repayment.

https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

Alternatively, HMRC will pick it up after April 25 and repay it, probably around next summer:autumn

Thanks

I have already qualified for full new state pension so am good on that front. I don't plan on working any more this financial year so will probably put in a claim later in the year to get back tax.

If you want to make a claim you would use form P50 on gov.uk.

But you don't need to claim, if you do nothing HMRC will automatically refund any tax this time next year.

https://www.gov.uk/tax-overpayments-and-underpayments