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, this is 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 send them any P60s that relate to the year in which you were overpaid - these confirm your final tax code and pay details for the year. It's a good idea to keep copies of any documents you send. You may be sent a form to complete and return. Then you'll be issued with any tax repayment due to you.
Claiming tax back
Lindsay Pritchard from HM Revenue & Customs gives her advice about how you can claim tax owed to you.
How long will it take to get a tax repayment?
If everything goes smoothly, 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. In busy periods, HMRC say that it can take up to 28 days, maybe longer. If it does take longer than 28 days contact the tax office to find out what's happening.
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 finished 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 your employer gets the correct code they will use an emergency tax code.
Why would I be put on an emergency tax code?
Like many other codes, the emergency tax code is a number followed by the letter L, but it is used on what is called a 'non-cumulative' basis. You might hear this referred to as 'week one' or 'month one'. It means you might pay the wrong amount of tax as it won't take into account any income you have received and any tax you have paid in the tax year so far.
An emergency code will probably be used if you have had other earnings in the tax year but haven't got a P45 to give your new employer. This could apply if you have lost your P45, or previously worked as a student in a holiday job under the P38S scheme (explained below). 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 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. You will be given an annual allowance you can receive before paying income tax. 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 non-taxable income from things like student loans, scholarships and educational grants) is less than your tax free allowance for the year. You'll need to complete a student exemption form called a P38S, 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, as long as your employer agrees to use the P38S scheme.
What if my income is going to be more than the allowance?
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.
Do I need to pay tax on income made from my savings?
Income from savings is counted with your wages and other taxable income, so it will count towards your tax-free allowance. You need to ask your bank to have your income from savings paid to you without being taxed. You can download this form (R85) and take it to your bank to save time.
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