FAQ: Claiming tax back
Don't let tax be troublesome. If you think you've been charged too much and you want to know how to get it back, Lindsay Pritchard from HM Revenue & Customs (HMRC) tells TheSite.org how to go about it.
What should I do if I think I've paid too much tax?
Enter how much pay you've received on HMRC's tax checker and how much tax has been deducted. This will tell you if you've paid too much tax. If this is the case, you should write to your tax office and return any P60s you may have - these confirm your final tax code and pay details for the year. Then you'll be issued with a tax repayment.
How long will it take to get a tax repayment?
It should only take a couple of weeks to get your cheque, as long as the tax office has all the information it needs. In certain circumstances, if the employer hasn't sent your pay and tax details in, the tax office may need to write to them to get that information.
I got taxed in a previous job, but I've lost my payslips!
If you haven't been given any payslips or you've lost them, your employer needs to let the tax office know what date you finish your job. If this hasn't happened, you'll need to contact the tax office or HMRC Enquiry Centre so that your employer can be asked to provide the relevant information.
How do I know if I'm on the right tax code?
You will find your tax code on your payslip. If you think you're on the wrong tax code, you need to contact your tax office as soon as possible. If you've lost your P45 (given to you by your employer when you stop working) or your payslips and you want to find out what your tax code is, you'll need to give the tax office your National Insurance number, and if possible, a tax reference number. Until you get the correct code your employer will be asked to use a temporary code.
Why would I be put on an emergency tax code?
The emergency tax code is a number followed by the letter L. This is operated by an employer for several reasons: when you start in the middle of a tax year (April 6 to April 5 the following year); for new employees whose pay is above the Pay As You Earn (PAYE) threshold; or if you don't have a P45 when you start a new job. If your employer hasn't got any previous pay tax details they will often use this tax code. This means that it doesn't take into account any previous weeks that you may have built up from your tax-free allowances. If you're on the emergency tax code, get in touch with your tax office and they will arrange to get this put right.
Do I need to pay tax on income made from my savings?
Income from savings should only be taxed if you're already earning more than £104 a week. You need to ask your bank to have your income from savings paid to you tax free. You can download this form (R40) and take it to your bank to save time.
Do I have to pay tax if I'm a student?
If you're a student you're not treated any differently as far as paying taxes is concerned. For the current tax year 2008-09, the amount of income everyone is allowed to receive before paying income tax is £6,035 If you work solely in the holiday periods you may be able to receive your wages without tax being deducted, provided your income from all sources (apart from student loans, scholarships and educational grants) is less than £6,035 for the year. You'll need to complete a student exemption form called a P38, which your employer should give you. If you fill out this form and give it to your payroll department, no tax will be taken from your wages.
What if my income is going to be more than £6,035 a year?
You should ask your employer for a P46. You will then be taxed under the PAYE system and issued with a tax code that shows your entitlement to any allowances and deductions. Your employer will be informed of your tax code to enable them to deduct the correct amount of tax and National Insurance contributions from your wages.
