career break-tax implications?

H

Hippykitten

Guest
Hi all,

Am thinking of taking a career break next year & would love some feedback as to the tax implications of such a decision. I would be leaving on Sept 1st 2010 and returning to work on Sept 1st 2011. I pay tax at the higher rate and am wondering what tax I might be entitled to claim back for 2010 and what effect it might have on my tax bill in 2011. Thanks
 
If you have no earnings in that period, you will be entitled to the tax credits that you have not used in both years, and depending on your level of income you may be in the lower rate band.
 
I was in a similar positon a few years ago. At the end of 2010 request a Balancing Statement from Revenue and depending on how much tax you have paid, you may well be entitled to a refund (as it was in my own case) As you will only be working four months of 2011, you're likely to get a refund of any tax paid, again after requesting a Balancing Statement for 2011.

Hope this helps
 
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