PAYE tax refund

[sawman]

My lad is a student. He did a couple of months work last summer and then has been on paid placement since january.

He has paid PAYE tax on these earnings and gave his placement employers the P45 from the summer job.

He just asked me what the process is for getting his tax back as his total earning for this tax year will be well below the personal allowance.

Will hmrc refund his tax once P60 has been completed by current placement employer? Or will the hmrc issue a different tax code so that he is reimbursed? (He will be with them until july). More to the point will this just “happen” or should he be contacting hmrc . I have pointed him to the hmrc app as a starting point

Thanks in advance

[trickywoo]

Probably easier to run through the few questions here and get a pretty nailed on answer: https://www.gov.uk/claim-tax-refund

[sawman]

Thanks, yes we looked at that - it suggested current employers tax code would be changed to pay back tax, this hasnt happened as yet- and infact he is still paying tax, rather than getting anything back

[trickywoo]

In that case I'd expect to see a different tax code on the April payslip.

[Blue_star]

I think tax allowance is allocated on a monthly basis. You compare monthly income vs it. For paye. Self employed is different

[sawman]

trickywoo said:

In that case I'd expect to see a different tax code on the April payslip.

[northandy]

He will have been put on a week 1/ month 1 tax code due to the earning gap. So it’s not back calculated and given him a rebate.

As tax year has finished HMRC will realise he’s overpaid and refund… but it might be worth him calling as he will then possibly get it faster

[sawman]

trickywoo said:

In that case I'd expect to see a different tax code on the April payslip.

Just by way of an update, his tax code didnt change in april. He is finishing placement this week and so will have all afternoon to hang on the telephone to speak to someone. He is looking forward to getting his £1400 25/26 tax back.