| How can you qualify for PAYE (pay as you earn) tax | | | | to be quite lazy in not checking if their new employee |
| rebate which is often referred to as a p60 or a p45 | | | | has a p45 or indeed in getting them to fill up the |
| income tax rebate? The p60 and p45 refer to the tax | | | | correct forms to get a corrected code number. |
| forms that you get from your employer the form p60 | | | | If you have been taxed on a month one or an |
| is issued at the end of the tax year. The form p45 is | | | | emergency tax code and have only worked part of |
| issued if you leave your employment before the end | | | | the tax year you probably will be able to qualify for a |
| of the tax year. | | | | tax refund. |
| Well it would be a very clever idea to have the form | | | | You may also qualify if perhaps a benefit has been |
| p60 or a p45 as that will show the actual income you | | | | coded into your PAYE code that you are no longer |
| have earned and the tax that has been deducted | | | | receiving such as a medical or a car benefit. |
| from that income. | | | | Often one may be able to claim for expenses that |
| The way the PAYE tax system works is that it is | | | | have not been reimbursed to you or have been |
| usually quite accurate for straightforward situations but | | | | reimbursed at a rate lower than that at which you can |
| does not handle well anything that may be slightly out | | | | actually make a claim. This can be when you have to |
| of the ordinary or not the norm. | | | | use a car to carry out your employment duties and |
| Often if you leave your job part way through the tax | | | | either you do not receive a mileage allowance or one |
| year then you will not have had a full years worth of | | | | that is paid at a lower rate below what you can get |
| personal allowances utilised against your income. | | | | tax relief on. |
| This is nearly always the case if you leave the UK | | | | If you have been in the same job for a number of |
| before the end of the tax year so that you do not | | | | years you may be able to make a claim going back |
| re-commence employment in the UK and even if you | | | | for 6 years which could generate quite a large tax |
| stay in the UK you do not have any other taxable | | | | refund. |
| income to use up your allowances then you will | | | | You may also have equipment that you need to |
| probably be due a tax refund. This could often very | | | | properly carry out your employment that you have not |
| simply be because you may be a student and work | | | | claimed for. This can vary from trade to trade but one |
| between terms. | | | | to consider is that of motor mechanics where quite |
| The other way that this often applies is for people | | | | often they supply or buy their own tools. |
| starting employment part way through a tax year and | | | | In a short article such as this one cannot cover all the |
| perhaps then they have an emergency or month one | | | | various aspects that can give rise to a tax refund. |
| code which quite often happens as employers' seem | | | | |