Tax - TSR guide and questions thread - Page 8

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Hey, I should be able to claim my tax back, as I earn less than the certain amount. What form do I need to send off, so I can claim my tax back? Thanks

Reply 141

Illusionary

DeaNo G

Hey, I should be able to claim my tax back, as I earn less than the certain amount. What form do I need to send off, so I can claim my tax back? Thanks

Have you read the wiki article linked to in my first post in this thread (also available from my signature). You've not given enough details of your circumstances for me to give a tailored answer to you, but there's a section of my guide that explains how to reclaim in various sceanrios here: http://www.thestudentroom.co.uk/wiki/Income_Tax_and_National_Insurance#Reclaiming_overpaid_Income_Tax

Feel free to post again if anything's unclear after you've read that. :smile:

Reply 142

Illusionary

mel0n

Ok thanks

Last few things, the first sheet of the form has a little box thing right at the start, looks similar to the ones where you stick a photo (but this one is obviously for something else) and then a few boxes to fill in saying 'Please use these if you write or call' and I think I have to enter my tax reference and NI number, but it also says 'Issued by:' Do I enter my local tax office here or my previous employer? :s-smilie:

And the address I send it off to would be the local tax office, not the main one or anything, right?

I'm so dopey. :frown:

I'd leave the "Issued by" box blank. I would assume that this will be filled in by the issuing tax office if they send a form to you in the post rather than it being downloaded, but this shouldn't be important for their ability to process the form. As for where to send it to, that would be your tax office, yes, ideally referring to the one shown on your payslips. If it does need to go elsewhere they would forward it on, anyway.

A good idea (though by no means essential) if you're able to would be to write a short cover letter explaining why you're sending the form and giving contact details if there are any issues that needs to be raised. :smile:

Reply 143

DeaNo G

Illusionary

Well basically, I had a christmas temp job. Im 18, and go to college, I earned just over 1k. So, with that all in mind, I think im entitled for the Tax i was charged to be refunded?

Reply 144

Illusionary

DeaNo G

Well basically, I had a christmas temp job. Im 18, and go to college, I earned just over 1k. So, with that all in mind, I think im entitled for the Tax i was charged to be refunded?

Assuming that you have had Income Tax deducted from your earnings in the first place, then yes, you will likely be entitled to a refund. Note, however, that this is because your total income for the 'tax year' (ending 5 April 2010) is below your tax-free 'personal allowance (currently £6,475 for most people), and has nothing to do with your age or status as a student.

To apply for a refund, download a form P50 from HMRC's website here and send it to your tax office together with Parts 2 and 3 of the form P45 that you should have received from your former employer when you stopped working for them. Contacts details for your tax office should be on your payslips, or alternatively can be found here.

This is all in my wiki guide, BTW. :wink:

Reply 145

DeaNo G

Illusionary

Haha, soz

But thanks for help, will sort that out. Rep+

Reply 146

-Blade-

Illusionary

What do you mean by "owing you your tax return"? The tax return is a form that you complete and send back to them as part of self-assessment arrangements (though this is commonly now done online).

Are you trying to get a refund of overpaid Income Tax? If so, what information have you provided to HM Revenue & Customs so far? The usual procedure to reclaim overpayments from previous tax years is to write to your tax office with a copy of any relevant forms P45 and/or P60, which should be all that you need to do. Read more in my guide here.

When you say you've tried calling them, where exactly have you been trying to contact. The tax office responsible for your tax affairs is the place to contact (and the place to write to, as above), and you can find details of this office either from the HMRC website here or from your payslips.

Hi,

Yes I have paid too much income tax. I have given my P45s/P60s and payslips but have had no response. They (Inland Revenue and my local tax office) keey saying we will give you your money in a week/2 weeks but this has not happened.

Also, when applying for jobseekers allowance, is there a limit in the amount of savings you have which prevent you from being eligible? Eg if I have more than 10k I cannot apply.

Thanks

Reply 147

Illusionary

-Blade-

Assuming that you've sent in everything that's required, all that I can suggest is to keep chasing your tax office on the status of whatever repayment you're owed. Keep note of who you speak to and when for use in subsequent enquiries. Have your tax office confirmed receipt?

When you say refer to "they", it seems that there may be some confusion here as to who you've contacted. Your tax office are part of HM Revenue & Customs (the body into which the Inland Revenue was absorbed); have you been in contact with two separate places?

For your question on JSA, you may be better off starting a separate thread about this; it's not something that I have direct experience of. However, I believe that Income-based JSA may be reduced if you have a high level of savings, but Contribution-based JSA is not.

Reply 148

roxy potter

If I start work in say September, having not worked all year, how does this affect my tax? Does it mean that I'll be paying less tax on a weekly basis than I would be in the new year due to the fact that I won't be as far over the tax free threshold (for the year) as I would be if I was working for a full year.

That's what happens at home, but I'm not familiar with the UK taxation system.

Sorry if I phrased it badly but thanks to anyone who can help.

Reply 149

Illusionary

roxy potter

I'd expect that you'll have a 'catch up' period at first when you'll pay less tax on your income than you normally would. Your tax-free 'personal allowance' is spread across the 'tax year' (which runs from 6 April to 5 April each year). Your Income Tax deductions for a period are calculated as:

{[(Total income to date)-(Allowance attributable to the year to date)]×Tax rate} - Tax paid to date

An example may help:

•

Income to date = £4,000

•

Six months into the year

•

Tax paid to date = £100

Tax for the the month = [(4,000 - (⁶/₁₂×6,475)]×20% - 100 = [4,000 - 3,238]×20% - 100 = 152-100 = £52

As you say that you haven't yet had any taxable income for the year, your total income to date will probably be low relative to the portion of your personal allowance attributable to the period, hence you're likely to pay less Income Tax than you would if you started earning at the start of the tax year.

There's a more thorough explanation of the UK personal tax system in my guide in the wiki, linked to in the first post in this thread and in my sig. :smile:

Reply 150

blahbloo

I worked 8 shifts for a company temporarily which I earned £190. But I have just got paid £125 today. I understand that when a certain amount is being earned a week, tax gets applied upon it. It's just...35% tax sounds really high or is that right?! And no, I don't have any payslips. :s-smilie:

Cheers if you can clarify this!

REP for any helpful answers!!! :smile:

5 days.

You really will need to see if you can get a payslip. Even if you got taxed wrongly it should only have been around 20%.

Reply 153

mini_lidi

blahbloo

Cheers if you can clarify this!

REP for any helpful answers!!! :smile:

Sounds like emergency tax, happened to me when i started working.
Ring up the tax man and ask about it, you should be able to claim it back.
More info on emergency tax is HERE

Reply 154

Illusionary

blahbloo

Cheers if you can clarify this!

REP for any helpful answers!!! :smile:

You're legally entitled to receive payslips, so contact your employer and insist. It sounds like you're being taxed on the assumption that you don't have any tax-free 'personal allowance' (the standard allowance is £6,475 annually). If/when you get your payslip, check the 'tax code' shown on it - this will probably be "BR", which indicates that all of your income is being taxed at the basic rate (currently 20%), without any allowance.

Are you still employed at that company? It sounds like you aren't any longer, in which case you'll need to claim a repayment of any overpaid Income Tax directly from HM Revenue & Customs, but to do so you'll usually need documentary evidence of your income. The best thing to use would be a form P45, which again is something that you're legally entitled to receive, as it summarises your total income (for the year) from an employer when you leave the job. A refund of overpaid Income Tax on employment income from the current tax year should be made on a form P50, available from HMRC's website here.

So, I'd suggest as an action plan:

•

Contact your employer and insist on receiving paylips and a form P45.

•

If that gets you nowhere, contact your tax office (contact details available here) for advice.

•

Once you're in a position to claim a refund of any overpayment, complete a form P50 and send this to your tax office with supporting evidence.

I can't explain without further details how the £190 has become £125 (are you sure that your gross earnings should be £190?), but on a "BR" tax code I would expect your total deductions to be greater than 20%. This is because National Insurance Contributions (NICs) will be deducted at a rate of 11% on the excess of your income over £110 per week. Unlike Income Tax, you can't reclaim NICs on the basis of your total annual income being low - these deductions are calculated separately for each pay period.

Finally, just to clarify - a "BR" tax code is not the 'emergency tax' code, though it's not uncommon to see people referring to it as such.

Reply 155

hypocriticaljap

don't forget you'll have paid Nat insurance as well.

Reply 156

kangarooz

well got my new tax codes this morning (365T & 282L) and with 2 part time jobs they have split my personal allowence 1) £3653 2) £2822 = £6475.

If by next April I earn less than the toal number, I will be able to clain for the tax I paid, but my question is if I earned like £7000 would I pay the 20% on the whole amount or just 20% of £525 that was over my personal allowance? Ta

Reply 157

Illusionary

kangarooz

Good to see someone understanding how to split their allowance. :smile:

To answer your question, you'd only pay Income Tax on the excess over £6,475 - so on £525 in your example. Bear in mind that you may also have National Insurance Contributions deducted if you earn more than £110 per week from either job.

Reply 158

kangarooz

Hopefully NI wont be too mucm but is just annoying now think because I am on an emergency tax cose i pay 20% on the £150 earnings on my second job, do you know if they will tax me 20% on both jobs after April even if I am earning less than my allownece or will they only tax me for the months were I exceed the 'limit' they have set for each month?? Hope that makes sense!!

Reply 159

Illusionary

kangarooz

Are the codes that you mentioned above for the current tax year (2009/10) or next year (2010/11)? If they're for next year then when they come into effect (from 6 April 2010 you'll only pay tax on the excess over the relevant allowance allocated each job. Income Tax is collected under a system called 'Pay As You Earn' (PAYE), which works on a cumulative basis. This effectively spreads your allowance(s) across the year, and each time you're paid your total income for the year to date is compared to your total allowance for the year to date.

I gave an example a few posts up, which may be helpful (based on the standard personal allowance:

•

Income to date = £4,000

•

Six months into the year

•

Tax paid to date = £100