Tax Rebates & Refunds

How changing jobs can affect your projected tax contribution

June 28, 2012
Posted in Tax Rebates — Written by Geoffrey

Changing jobs part way through the year can play havoc with the way tax is collected from your earnings. In some cases, you may start a new job that pays much more money than your previous job. In other cases, you may start a job on a much lower wage for some reason. Many people have faced the latter possibility in recent years because of insecurity in different industries due to wider financial issues.

Dealing with this situation is not easy, but people do adapt over time to the new conditions they are living and working in. It is up to you to make the new situation work in your favour. However, you must remember that changing jobs can affect tax and it can sometimes mean that what you have paid for the year so far equates to an excessive amount when contrasted with your projected earnings since the change.

Taxes are worked out on a year-long model so it is no surprise that issues develop when people move jobs. The key is to make sure things even out over time and if they don’t, get in touch with the Inland Revenue for a tax refund with supporting evidence for your claim.

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