No Tax Refund, Been out of work

[herbertg]

I was out of work for 3 months in the last tax year. I have been told that I am not entitled to a refund. I thought that if some one was out of work for a period of time in a tax year, they were entitled to a tax refund. Thanks

[ims21]

Were you on PAYE and was this three month period of unemployment in the middle of the tax year?

 

If so, when you started your new job and handed over your P45 to the new employer then the PAYE system is self balancing so it is likely to be correct.

 

You can check whether you have paid too much tax in any tax year by checking the P60 given to you at the end of the year. Take the gross pay and deduct the personal allowances you are due and then use the tax rate tables (HMRC website) to work out what tax is due. If it agrees with the P60 then all would be OK.

[herbertg]

thanks for replying, i was out of work from november until beginning of feb. I was on emergency tax throughout feb and march until they sent me a new code. I thought I would have some rebate due. It was PAYE

[ims21]

Ok, emergency code could make a difference.

 

Carry out the calculation I suggested and if you have paid too much then you would need to contact HMRC to obtain a refund.

[herbertg]

contacted them and they said i am not entitled for a refund, although i paid all that tax but was not employed for 3 month

[ims21]

Carry out the calcs as in post #4

 

I take it you have your P60?

[Nystagmite]

It makes no difference if you were unemployed for 3 months. What was your tax code and how much did you earn?

[Gbarbm]

Were you in receipt of JSA during the 3 month period of unemployment?

JSA is taxable, so in order to calculate if any refund is due, HMRC would need details of the amount of JSA received.

Did you get a P45 1 (u) from the jobcentre when you signed off JSA?

If you did and handed this in to your employer, they would have accumulated the JSA and refunded you through your pay; you can check this by viewing the payslip you received after the P45 1 (u) was handed in. If a refund was made, you will see the letter R followed by an amount (the tax refund)

This may be why HMRC are telling you no refund is due as it has already been made.

[herbertg]

tax code 745 , total earnings £22000. and £2905 tax paid

[ims21]

Think you will find your tax code is 747.

 

That means £7475 personal allowance

 

Gross pay £22000 less £7475 = taxable amount = £14525.

 

Tax on that at 20% = £2905 which is the amount paid so on that basis all looks correct and no refund due for the year.

[Gbarbm]

So I take it the code is 747L. If this is for 2012/13 it would usuually be 810L.

Sounds as if you may have a deduction in your code. Check your latest P2 as this will give a breakdown of the deductions such a\s an underpayment carried forward, car benefit etc.