Tax Rebates & Refunds

What you need to know about tax when leaving a job

January 29, 2013
Posted in Income Tax, Tax Rebates — Written by Geoffrey

When you leave a job, no matter what the reason for leaving, you must take a few steps to sort out your tax affairs.

You need to do the following:

Make sure your employer sends you a P45 form. Whether you leave, are sacked or made redundant, your employer must give you a P45 form. You will need to give this form to your new employer when you start a new job.

Give your P45 to the DWP if you are claiming benefits. If you don’t find a new job right away and you want to claim Jobseeker’s Allowance, you will need to give your P45 form to the Department for Work and Pensions (DWP). This will be used to pay you any tax refund you may be owed once you finish claiming benefits.

Check to see if you’re owed a tax rebate. If you leave your job part way through the tax year and don’t start another position right away, you could be entitled to a tax refund. This is because tax is calculated based on the assumption that you will work for the whole of the tax year, so you may have overpaid if you spend some time out of work.

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