Another Tax Question

[arryb]

I started a job in July of last year having not previously worked in that tax year. I'm a student and this year is a student placement year so I'm still taxed as being a student. My tax code is 522L but since I have only worked July-April paying that tax code, how do I work out if I can get some tax back because the first £5,??? is tax free IIRC and I haven't worked a full tax year, so have I been paying tax based on earning my salary for the 12 months of the tax year? If so, how do I go about claiming it back, or will this happen automatically in due course?

Any help greatly appreciated Arry.

[Ade355]

arryb said:

I started a job in July of last year having not previously worked in that tax year. I'm a student and this year is a student placement year so I'm still taxed as being a student. My tax code is 522L but since I have only worked July-April paying that tax code, how do I work out if I can get some tax back because the first £5,??? is tax free IIRC and I haven't worked a full tax year, so have I been paying tax based on earning my salary for the 12 months of the tax year? If so, how do I go about claiming it back, or will this happen automatically in due course?

Any help greatly appreciated Arry.

One way to definately sort out your tax position is to complete a Self Assessment Tax Return prior to October (?date has just changed) this year online.

5,225 was the tax free limit in that tax year.

Edited by Ade355 on Thursday 17th April 10:12

[Tuscan Tart]

As long as it wasn't a month 1 tax code, you will have been taxed correctly, the figures are reworked every month to take into account previous pay and tax paid.

If you started work in July you would not have paid any tax until you had earned £1741.66 (April, May, June and July's freepay)

Only on a month 1 tax code is previous pay and tax paid not taken into account.

Hope the above makes sense.

[mcflurry]

You will pay 20% of your earnings above £5229 between April and April.

Say you earn £6000 during July to April, you would still pay £6000 - 5229 x 20% = £154.20

[Eric Mc]

In the tax year 2007/08, the Starting Rate of tax was 10%. Earnings just above the tax threshold of £5,225 would have been taxed at 10% - not 20%.

Since 6 April 2008 the fisrt rate of tax IS 20% but on earnings over £5,435.

[mcflurry]

True - was using this years rates (oops)