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 Im 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
If you've earned more than the personal allowance (£6,035 in 2008-09) in this financial year then you will be liable for income tax. If you are paying tax by Pay As You Earn (PAYE), then you should only have paid the amount required.
If, whilst at university, you have a part-time job, you will be liable for tax on your present tax code. If you have paid too much tax earlier in the year, your employer will be notified of a code change and amend your pay accordingly. If at the end of the tax year it is found that you have paid too much tax and you are not working, then the HM Revenue and Customs (HMRC) should refund any overpaid tax.
The 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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