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Tax & Redundancy

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hi.

I have a question as i have no clue about tax and the like. Im basicallly being made redundant, and i noticed on my wage slip for the previos 4 week period that it says PAYE ( pay as you earn i think it is isnt it? ) but i am curious. Can i claim any Tax back seen as i am no longer working ??

Any help at all most appreciated :)

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Have you actually paid any tax this year??

    If so, and you are not claiming Jobseekers allowance or any other taxable benefit, you can claim a repayment after four weeks of being unemployed. You need to get a form P50 from your local tax office to do this on.

    If you are signing on, any tax repayment will be given to you when you sign off, providing you gave the jobcentre your P45 when you signed on with them. If you did not give them your P45, you will get any repayment due for 04/05 when you next start employment and your employer is given your tax code from the tax office...this can take a few weeks while we get all your pay and tax details together.

    Hope that clears it up for you!
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    PAYE is opay as you earn.

    Your tax-free limit is just over £4,600pa, so if you have already earned more than this you won't get all the tax back. As tax is done per month you will get it back if you do not make more earnings, but you won't get it back until April, at the end of the current tax year. You won't get any National Insurance contributions refunded.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Originally posted by Kermit
    PAYE is opay as you earn.

    Your tax-free limit is just over £4,600pa, so if you have already earned more than this you won't get all the tax back. As tax is done per month you will get it back if you do not make more earnings, but you won't get it back until April, at the end of the current tax year. You won't get any National Insurance contributions refunded.

    Sort it out Kermit

    1. It's £4745 per year for the average person
    2. You can claim in year repayments, on a four weekly basis...you don't have to wait until April
    3. Tax is not done on a month by month basis, it's cumalative or there would be no point in tax codes

    Sorry..nerdy rant from the tax officer over now!!
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I wasnt planning on going onto job seekers allowance, i have 4 weeks to find another job. I am made redundant on 31st of july, i havent worked over my tax code, which according to this here pay slip is 474......
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Originally posted by Richeh
    I wasnt planning on going onto job seekers allowance, i have 4 weeks to find another job. I am made redundant on 31st of july, i havent worked over my tax code, which according to this here pay slip is 474......

    Ok, so your not actually unemployed yet. If you are unemployed for four weeks (from 31st July when ur job finishes) without claiming Jobseekers allowance you can claim an unemployment repayment. You will need to send in your P45 for this.

    If you find a job before, make sure you give your new employer your P45, so they have your previous pay and tax details. If there is any repayment due, your new employer will pay it to you through your wage packet. I'm not saying there is a repayment due, it just all depends on how long you are out of work for, and how much pay and tax you have had already.
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