Career Break Tax Refund

samgrima1293

Hi

i am going on a career break 16/12 for 3 years but will still be employed by my current employer for that time.

i have been paying 40% tax all year but will not hit the £50k threshold this financial year due to when I leave.

will i get this back through payroll?

also, will I receive 4 months of the tax free allowance back if on code 1257L as I will not receive all of this due to stopping work in December.

thanks in advance 

chrisbur

Provided that your employer leaves you as active on the payroll and processes you for no gross each month then a tax rebate would be processed.  You need to speak to payroll to confirm if they intend to do this though.

Albermarle

chrisbur said:

Provided that your employer leaves you as active on the payroll and processes you for no gross each month then a tax rebate would be processed.  You need to speak to payroll to confirm if they intend to do this though.

If not, then you will probably have to wait until the end of the tax year when an automatic calculation of your 24/25 tax will take place around September.

They will add up your total employment income for the year ( or 8.5 months in your case) ( I am assuming no other income) subtract your personal allowance of £12570 and then calculate how much tax you should have paid.
If it is less than you actually paid ( which seems likely) then you will get a rebate.

chrisbur

Or they could mark the OP as dormant until the last payroll of the tax year when an end of year tax rebate could be run.

Albermarle

OP,
It sounds like you need to speak to your HR/payroll department, about how they will treat you in their payroll system when you are a non earning employee.