Tax Rebates & Refunds

Some important facts about PAYE and different tax codes

July 15, 2010
Posted in Income Tax — Written by Geoffrey

The PAYE (Pay as You Earn) system allows income tax to be deducted from your pension, employment income, incapacity benefit or jobseekers allowance. However, the state pension in the UK is not taxable. Generally, payments made in the any type except benefits-in-kind are all considered as employment income and are accountable for PAYE.

People who presently reside abroad can be subjected to UK PAYE. For instance, individuals who are on a pension paid for the duties they performed in the UK.

How do you get your tax code?

The income tax department issues a relevant income tax code depending on the information you provide about your personal income. The PAYE code is generally given before the start of a new tax year. It can also be dispatched at other times if your details have changed.

While not everyone receives this type of notice as standard, you can get your tax code on your wage slip or P45. The tax code informs the salary department of your employer on how much of income tax is to be deducted from your salary. If you get your salary from two different jobs, you can have two different income tax codes.

If you pay your taxes regularly, you become eligible to get a tax rebate. When filing for a tax rebate, you can take help from professionals to make sure the process goes smoothly.

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