Tax Rebates & Refunds

How to claim tax back after you stop working

April 26, 2011
Posted in Tax Rebates — Written by Geoffrey

While not many people know, a tax refund can also be claimed back after you stop working. Tax overpayment can occur when you become unemployed, return to studying or possibly because you have retired.

A financial year starts from the 6th April and ends on 5th April the following year. In case you stop working anytime during this period, there are chances wherein you may pay excess of taxes. You might overpay your taxes through PAYE as an employee if -

  • You were employed for half of the financial year
  • You returned in the middle of the tax year
  • Your employer had put you on an improper tax code
  • You were a student and just worked during the holidays

In case, you could not find another job after being made redundant, you might also have overpaid taxes. Tax overpayment also happens if you have received payment after leaving your job, like -

  • Payments in lieu of notice
  • Arrears of pay
  • Termination payments
  • Redundancy
  • Unpaid holiday pay

If you are self-employed, you must ensure that you make ‘payments on account’ before the tax bill of next year. It is always advised to use a tax rebate calculator to find out the amount of tax rebate you are eligible to get.

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