Qualify For A Tax Rebate After April

[DonaldDuck92]

Hi,

I'm looking for second opinions on whether I will qualify for a tax rebate.

Left my job in September so got my last salary pay end of that month. However, there were four rollover days and holiday pay that I received end of October. Have claimed jobseekers since December. Hoping to be back in work in March/April.

Is a tax rebate possible?

[Buenchico]

Some rough calculations, based upon you earning £400 per week in your old job and not starting your new job until the new tax year starts in April:

You'll have worked for about 26 weeks, earning about £10,400. During each of those weeks, the first £240 you earned was tax free. So you were taxed (at 20%) on £160 each week = £32 tax per week, making £832 tax in all.

Your 'earnings' for the year (i.e. including JSA) were £10,400 + about £1260 = £11,660, which is below the tax threshold for the year. (i.e. you shouldn't be paying any tax at all for the current financial year).

Using those figures, you'd be entitled to a refund of all of the tax that you'd paid (£832).

If your earnings were higher than that, your total 'earnings' would be above the personal tax allowance, meaning that you'd be entitled to some of the tax you'd paid back but not to all of it.

[ToraToraTora]

Possibly if you are on a higher rate tax because they tend to assume a constant rate through a year for PAYE. If you are a basic rate payer then probably not but it's easy to work out using your last payslip or ideally a P45.

[ToraToraTora]

ignore my reply, chris is correct I forgot about the tax free allowance primary effect. Your P45 will help though, so yes you should get some sort of a refund.

[New Judge]

Multiply the number of weeks you expect to receive JSA by the weekly rate. Call this (Total 1)

From your P45, see what your taxable pay was. Call this (Total 2)

Add (Total 1) to (Total 2). This your total taxable income. Call this (Total 3)

From your P45 see the amount of tax you paid. Call this (Total 4).

If (Total 3) is less than £12,500 (your personal tax-free allowance) no tax is payable. Whatever tax you have paid (Total 4) you will be due as a rebate.

If (Total 3) is more than £12,500 calculate by how much it exceeds that sum and divide it by 5. This is the total tax due. Call this (Total 5).

If (Total 5) is less than (Total 4) you will due the amount of the difference as a rebate.

If (Total 5) is more than (Total 4) you will owe the taxman the amount of the difference.

[DonaldDuck92]

Thank you for the replies. Unfortunately I wasn't sent a p45 so that made things a bit tricky. I can confirm I was in the higher tax band...

[Peter Pedant]

I think you can demand one P45
the same infor may be on your last pay check receipty thing

[bobbinwales]

So you were higher rate taxpayer so income was over 4000 A month gross. So if your ctisl income is below the threshold for higher rate for full year you'll get back something for the difference between the two bands

[Peter Pedant]

Hi tax band
hmm I am surprised you are without a P45
but do the rather good tax calc from NJ using the info from your last pay check receipt

[bobbinwales]

Yes. Should if got a p45. Get an online hmrc account. Easy to do and see what the income was. It also tell's you expected v actual tax and income for the year and over or underpayments .

[New Judge]

The fact that you were a higher rate tax payer when at work does not invalidate my calculation and it holds good as it is provided your total taxable pay (i.e. from work and JSA – Total 3) does not exceed £50,000. If it does you must split your taxable pay (Total 5) into that up to £50k (which is taxable at 20%) and that above it (which is taxable at 40%) to calculate the tax payable.

[ToraToraTora]

a p45 is more or less the same as your last payslip anyway.