Does the tax man owe me?
Question
I've been working for some years now, basically since I left college. Im going to stop working this September as I'm going back to higher education. Because of this, I was wondering if I'll be entitled to a refund on the tax I've paid this year or not. And if so, how would I go about getting it back?
Answer
Because you've been working for part of the year, you will only have been given part of your personal allowance on your income tax, up to the point you give up work. You should contact HM Revenue & Customs (HMRC) for a refund. They may require you to send them your P45 and fill in a repayment form.
If you've earned more than the personal allowance in this financial year then you will be liable for income tax. As long as you are paying tax by Pay As You Earn (PAYE), then you should only have paid the amount required.
If at university you take a part-time job before the end of the tax year, your income will be added to the money you earned prior to starting university to work out whether you have reached your personal allowance. By giving your new employer your P45 your tax position will be automatically adjusted.
HMRC has a students section on their website that you might find useful and you might also want to look at the TAX + U e-brochure too.
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Question answered by CAB
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