How do i reclaim tax?

SideWinder

SideWinder

SideWinder

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Basically i am working part time at Tesco whilst in full education and it seems i shouldn't be getting taxed. I have been taxed for around a year and a half, since i first started working and i assumed it was all sorted and i would be getting my money back at the end of 2006. Basically i assumed too much..so my problem?

How do i reclaim it? Who do i ring up? I have my latest wage slip with all my details on it. I just want my
money back. :o
 
If I'm correct aslong as you have earned less than £5,500 in that period you are entitled to your tax back at the end of the tax year in april. Basically you'll recieve a p60 stating how much you have earned and how much tax you have paid. There will be details with it stating the procedure, usually you write a letter stating you havnt earned above the taxable amount and you and entitled to it back. The process takes about 4-6 weeks but they send you a lovely cheque through the post :)

Just to let you know, being student doesnt mean much regarding tax. If you work only holidays then you wont be taxed atall aslong as you let them know, however if you work during term time expect to pay the exact same tax as everyone else
 
Did a quick spot of researching, i think this is correct. Sourced from:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/ReclaimingTax/DG_10013075

You might have paid too much tax if:

you started a new job and had an emergency tax code for a while
you were only employed for part of the year
your employer was using the wrong tax code
you're a student who only worked for part of the year and didn't complete form P38S
Click to expand...

I'm currently using the tax code BR. I work 12.25 hours a week, part time. Hm, thing is, i started working for Tesco in June 2005. So roll forward June 2006 is a year and now we're in 2007. I have earnt under £5000 though, just.
 
sith said:
If I'm correct aslong as you have earned less than £5,500 in that period you are entitled to your tax back at the end of the tax year in april. Basically you'll recieve a p60 stating how much you have earned and how much tax you have paid. There will be details with it stating the procedure, usually you write a letter stating you havnt earned above the taxable amount and you and entitled to it back. The process takes about 4-6 weeks but they send you a lovely cheque through the post :)

Just to let you know, being student doesnt mean much regarding tax. If you work only holidays then you wont be taxed atall aslong as you let them know, however if you work during term time expect to pay the exact same tax as everyone else
Click to expand...

You still get taxed just like every normal person, even if you only work in the holidays, but you are correct in that you will not get taxed until your earnings are above your personal allowance (around £5500 for most.)

What is you tax code? Are you on basic rate (BR i think)? Is this your first job? If so, then you need to fill out a form stating that it is your first job (can't remember the name of it but someone here will know) and send it to the IR. Your tax code will then change, and you should get your tax back in your wages. If this isn't your first job, then I think you should be able to send your P45 along with a letter, and they will give you your money back.
 
Just send a letter to your local tax office saying

In year 200x-200x I earned £x.
I paid £x in tax and enclose my P60 as evidence.
I believe this is an overpayment. Could you please check this and refund me if I have paid too much?

Regards
You.

Job Done.
I've had to reclaim for the past 5 years. This year I've underpaid about £100 - not gonna be so quick to write and tell them that though!
 
As has been said, just write to the local tax office and tell them what's happened. Tell them when you worked and how much you earned. They can do the rest.
 
I went into my local tax office with my p45 and the nice man filled out all the forms for me and sent it all off. Got my cheque 4 weeks later :)
 
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Without reading any of the other posts lol.

This is how you do it, basically your code on your payslip will be say "BR" well phone up the tax department and ask for a tax code, give them your work details and then your work will be informed to change your code and all money refunded.

By the way leaving it for a year and a half isn't wise.
 
Just rung them up and after getting finally to the right office, a Scottish lady told me there was nothing wrong and i'm meant to be taxed...so now i'm confused? Apparently it only applies under certain strict rules or something?
 
SideWinder said:
Just rung them up and after getting finally to the right office, a Scottish lady told me there was nothing wrong and i'm meant to be taxed...so now i'm confused? Apparently it only applies under certain strict rules or something?
Click to expand...

If your a student or anyone you wont be taxed upto ~£5000, if you go above this during normal working hours your taxed (but at a lower rate than fulltime workers, it starts at 10% then rises the more you earn) however during official university holidays where you will be continuing education into the following year you cannot and should not be taxed, so if you work from june onwards to september when you return to uni you shouldnt be taxed for your summer wages, or if you work over the xmas hols and the easter hols etc, again you shouldnt be taxed i.e. official hols.

Thats the 100% factual law abiding facts FACT
 
Combat squirrel said:
If your a student or anyone you wont be taxed upto ~£5000, if you go above this during normal working hours your taxed (but at a lower rate than fulltime workers, it starts at 10% then rises the more you earn) however during official university holidays where you will be continuing education into the following year you cannot and should not be taxed, so if you work from june onwards to september when you return to uni you shouldnt be taxed for your summer wages, or if you work over the xmas hols and the easter hols etc, again you shouldnt be taxed i.e. official hols.

Thats the 100% factual law abiding facts FACT
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Ah ha. I told her i worked all year round but only on weekends as i have college during the week. She informed me that there was no difference and that i still had to pay tax etc.

So basically, i have earnt just under £5000, so i need to relcaim my text before my next pay packet?
 
SideWinder said:
Just rung them up and after getting finally to the right office, a Scottish lady told me there was nothing wrong and i'm meant to be taxed...so now i'm confused? Apparently it only applies under certain strict rules or something?
Click to expand...

You have earnt under the minimum tax band, therefore you should not have been taxed, phone them up again.
 
I was just about to start a similar thread...The last time I paid tax was back in July. I paid nearly £3k (last pay packet from that employer included a quarterly bonus...for 130% of target hit. :D).

Now...I'll be paying about £250 in tax at the end of this month (based on basic salary, using the listentotaxman calculator).

Am I right in thinking that I should get some tax back...? Or a reduction?

*n
 
If your gross pay is under £5,035 for the tax year 05/06 (April 6th 2005 - April 5th 2006) then you should not have paid any PAYE tax. If you have been paying tax then you should be able to get it back as others have said.

If the Inland Revenue disagree then ask them for reasons why you're paying tax when you've earnt less then than the personal allowance.

Also, I would expect you should be on tax code 503L and not BR. Using tax code BR means you won't get any personal allowance and will pay Basic Rate tax (22%) on anything you earn.

If you get your tax code changed by asking your employer's payroll department or if they won't do it ask the Inland Revenue to do it then you may find you pay no or less tax. PAYE is calculated usually on a week 1 or month 1 basis so it depends what you earn during that particular week or month whether you will pay tax or not.
 
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penski said:
I was just about to start a similar thread...The last time I paid tax was back in July. I paid nearly £3k (last pay packet from that employer included a quarterly bonus...for 130% of target hit. :D).

Now...I'll be paying about £250 in tax at the end of this month (based on basic salary, using the listentotaxman calculator).

Am I right in thinking that I should get some tax back...? Or a reduction?

*n
Click to expand...

If you paid £3k tax in July 05 and now paying £250 your gross pay will have been way over the personal allowance of £5,035?

If that's the case then I don't see why you'd get any of it back?
 
Your tax free allowance is £5035, I think. The next 1600 is charged at 10%. Then up to 33100 it's 22%. Beyond that it's 40%. Savings are charged at 20%, dividends at 10% or 32 1/2%.

I could knock you up a spreadsheet to do all this in 5 minutes. Or I could just plug the numbers into Taxpoint.

</tax advisor>

Tell me how much you earnt in the year and I'll tell you how much you should have paid. Then you can nag the taxman.
 
vonhelmet said:
Your tax free allowance is £5035, I think. The next 1600 is charged at 10%. Then up to 33100 it's 22%. Beyond that it's 40%. Savings are charged at 20%, dividends at 10% or 32 1/2%.

I could knock you up a spreadsheet to do all this in 5 minutes. Or I could just plug the numbers into Taxpoint.

</tax advisor>

Tell me how much you earnt in the year and I'll tell you how much you should have paid. Then you can nag the taxman.
Click to expand...

Almost a tax advisor but not quite :p

Correct apart from the starting rate band which is 10% on the 1st £2,050. Also 22% is up to £33,300
 
whilst we're on the subject of tax, i get my first pay cheque this wednesday. How much am i likely to be taxed? should get £800-£1000, not entirely sure on the exact figure as the job is pro-rata and the pay confuses me a touch, guess i'll find out wednesday though.
 
Ripper^ said:
whilst we're on the subject of tax, i get my first pay cheque this wednesday. How much am i likely to be taxed? should get £800-£1000, not entirely sure on the exact figure as the job is pro-rata and the pay confuses me a touch, guess i'll find out wednesday though.
Click to expand...

Did you have a job before this one?
Also do you know what tax code you're on?
 
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