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Working before pgce? TAX REBATE!!!

Discussion in 'Thinking of teaching' started by anon193, May 10, 2011.

  1. Can you get the tax back as soon as you stop working or do you have to wait until the end of the tax year, ie, April 2012?
     
  2. Wow, definitely good news if it works [​IMG]
    Mind you, seeing as my tax office are about as organised as Student Finance, I shan't count on it....!
     
  3. mypseudonym

    mypseudonym New commenter

    Excellent. I always thought I would have to wait until the end of the tax year to claim back. But once I finish my job in August I be submitting the form straight away - I've already printed it, filled it in and stamped and addressed the envelope - just have to wait to get my P45. That's be nice bit of money hopefully!
     
  4. MonsterTeachingIdeas

    MonsterTeachingIdeas New commenter

    Does it matter how much you've earned? For example if you've already gone over the amount on your tax code are you still elligible?
     
  5. likejesus

    likejesus New commenter

    It doesn't matter if you've 'gone over' your personal allowance. It's probably best to explain with an example.
    In this example, you're earning £24,000 a year, or £2,000 a month -- all before tax. The annual personal allowance for 2011/12 is £7,475, meaning that only the remaining £16,525 is taxable.
    Because HMRC don't know that you're going to leave in the middle of the year, they spread your personal allowance across the twelve months, so in each month's pay £622.92 is tax-free. The rest (£1,377.08) you pay tax on, at 20% in income tax and 12% in National Insurance, for a total of £443.14 each a month.
    Now, if you work up until the end of August you'll have only earned £10,000 for the year; this is only £2,525 over the tax allowance, meaning only that amount attracts tax. 32% (20% income tax and 12% NI) of that is £808, which is your total tax liability for the year.
    However, you have paid more than £808 in tax already this year, as you have paid five months worth of £443.14 - which is what HMRC thought your monthly tax liability was before you told them you would not be working from September onwards - or £2,215.70, so you will be entitled to a refund of the difference which, in this case, is £1,407.70.
    Apologies to anyone who already knew this, but since I'm going to be a teacher I had better get all the practice in I can at explaining difficult concepts!
     
  6. It's best not to mention National Insurance contribution, as it won't be repaid. Only your overpaid income tax. If you are paid weekly, a fixed amount (£143.75) is deducted from your gross pay before you are taxed.
     
  7. MonsterTeachingIdeas

    MonsterTeachingIdeas New commenter

    That's great thanks! Really well explained; clear and concise. When I'm a bit more awake I'll be getting out my calculator and substituting in my figures!
     
  8. Georgia99

    Georgia99 New commenter

    I am on the PGCE and applied last September, I got a lovely £600 cheque in the post in the November!
     
  9. Does it matter if you don't apply for the rebate in the same tax year? IE.. If you stop working in May 2010 and volunteer until Jan 2011 and haven't submitted a form for tax year 10/11 then is it too late?
     
  10. I think you can submit up to 5 years later, but don't quote me on that!
     
  11. This is all great news :) i currently work but will be finishing in August so few months tax back will be nice. I take it that it doesn't matter if i do a bit of work say for the xmas hols? Any money of course will be helping us PGCE lot :)
     
  12. fluffysparkles

    fluffysparkles New commenter

    Better bump this back up to the top!
     
  13. Hey,
    I have sent mine off a while ago. Does anyone know when I can expect to recieve the cheque

     
  14. katnoodle

    katnoodle New commenter

    It should only take around a month, maybe less. I submitted mine in September and pretty much forgot about it, which was quite good actually because when I chased it and finally got the cheque it felt like a brilliant surprise! Give your tax office a call and make sure they've got your current address.
     
  15. katnoodle

    katnoodle New commenter

    September 2010 that is!
     
  16. fluffysparkles

    fluffysparkles New commenter

    Thought I'd bump this up for the next lot of pgce people! :)
     
  17. Thanks fluffysparkles, and OP. The link to download the form is:
    http://www.hmrc.gov.uk/pdfs/p50.pdf
     

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