tax question

[Lemmonie]

So if my tax code is XX

That means I can earn £ XX before I start to pay tax? is it worked out pro rate?

If so what happens if i cease to work part way through the year, do i get a tax rebate?

[Ali_D]

If you have paid tax but by the end of the year your earning are below your personal allowance, then yes you will get a rebate. You'll have to apply for it though so a quick search through the HMRC website is probably in order!

[E Ponym]

Tax/personal allowance/tax code

From the start of the tax year the personal allowance is divided up into 12ths and when your wages are paid each month's tax is based on this. The tax code you have usually reflects this in most cases.

So if you don't work at all for the second half of the tax year then you can claim the tax you have paid on 6/12ths of the personal allowance.

Things get more complicated if you are a higher rate tax payer - but the principle is generally the same; the tax you pay in PAYE assumes that you will be paid the same throughout the tax year.

Russ

[Tumbler]

In the past I have waited for my P60 then written to my tax office enclosing a copy for a tax refund.