Am I due a tax rebate?
Discussion
Hi all,
I started a job last October after a year out of employment (after University). I've since been paying income tax/national insurance at the appropriate rate for my salary.
My question is whether I'm due any rebate - as my taxable income in this tax year will be substantially less than my annual salary (due to starting work in October).
The reason I ask is that a friend is convinced I'm entitled to a rebate - the accounts guy at work thinks probably not.
Any ideas? Apologies for my ignorance.
>> Edited by blueski on Friday 22 July 15:16
I started a job last October after a year out of employment (after University). I've since been paying income tax/national insurance at the appropriate rate for my salary.
My question is whether I'm due any rebate - as my taxable income in this tax year will be substantially less than my annual salary (due to starting work in October).
The reason I ask is that a friend is convinced I'm entitled to a rebate - the accounts guy at work thinks probably not.
Any ideas? Apologies for my ignorance.
>> Edited by blueski on Friday 22 July 15:16
You started work in October 2004. The 2004/05 tax year ended on 5 April 2005. Therefore the first tax year you are interested in is the tax year 2004/05.
The annual tax allowance for £2004/05 was £4,745. If your salary between the day you started and 5 April 2005 exceeded £4,745, then you would have been liable to pay tax. However, whether you are due a tax refund for 2004/05 or not will depend on your actual tax liability for 2004/05 and what you paid under PAYE for 2004/05.
2005/06
What is your current PAYE Coding?
The annual tax allowance for £2004/05 was £4,745. If your salary between the day you started and 5 April 2005 exceeded £4,745, then you would have been liable to pay tax. However, whether you are due a tax refund for 2004/05 or not will depend on your actual tax liability for 2004/05 and what you paid under PAYE for 2004/05.
2005/06
What is your current PAYE Coding?
489L means you are currently receiving the standard tax allowance for an ordinary individual i.e. £4,895. That is what most people get. Unless you have some other PAYE related circumstances for 2005/06 - such as receiving some benefits-in-kind from your employer (company car, medical insurance, education fees etc etc) then I would expect that the 489L coding is correct for you.
The next question, what coding was shown on your P60 at 5 April 2005?
The next question, what coding was shown on your P60 at 5 April 2005?
Unless, of course, you were 489L on a week 1 basis.
If you were taxed from day one then almost certainly you were on a week one code and will be entitled to a rebate.
If your first few salaries were paid with no tax deducted (just NI) then it is likely that you werent week1 and thus wont be entitled to a rebate.
If you were taxed from day one then almost certainly you were on a week one code and will be entitled to a rebate.
If your first few salaries were paid with no tax deducted (just NI) then it is likely that you werent week1 and thus wont be entitled to a rebate.
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