Tax Rebates & Refunds

Understanding the tax refund process after you stop working

February 14, 2011
Posted in Tax Rebates — Written by Geoffrey

Have you stopped working recently? Was it because you retired, became unemployed or because you returned to studying? If the reply to the above questions is yes, you may be eligible to claim some income tax back.

When may you be due for a tax refund?

If you stop working part way through a tax year (6th April to 5th April following year), there are possibilities wherein you may have paid an excess of taxes. This can happen if you pay taxes as an employee through PAYE (Pay as you earn) or because:

  • You were employed for half of the financial year
  • Your employer had put you on a wrong tax code
  • You retired half way through the financial year
  • You were made redundant and could not find another job
  • You are a student and only worked during holidays

If any of the above condition holds true, you may have paid an excess of taxes. In such a case, you can apply and claim tax back.

How do I work out the tax rebate amount?

By the end of every tax year, your employer will provide you with a P60. On the other hand, if you end your employment, you will be given a P45. Both the P60 and P45 are important tax documents. They contain the entire details about your earnings and the taxes paid during a financial year. You just need to enter these values into a tax refund calculator. This way you will come to know the amount of tax refund you are eligible to receive.

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