Claiming back tax when you stop working

R

Ralphie

Registered User
Messages
35
Hi,

Just wondering how this works and what are the conditions?

How much tax would you get back and what the best time of the year tax wise to stop working?
 
Your tax credits for a year are allocated according to how you are paid (e.g. weekly or monthly). If you stop working at some point in the year after paying tax and have no or limited taxable income (including Jobseekers Allowance/Benefit and some other welfare payments that are assessable for income tax) then some or all of your tax credits for the remainder of the year may build up so that you are owed tax back from what was previously deducted. You can file a [broken link removed] to get this back. If by "best time" to stop you mean to minimise the amount of tax that you pay then it would be when you have earned such an amount that your gross tax equals your total annual tax credits I suppose?
 
thanks for reply!

is there something about having to work until April before you can do this?
 
If filing a P50 request you need a valid reason why you won't be resuming work before Dec 31. The last time I did this I was leaving the state for 12 months and this was accepted.
 
Not sure what you mean by "valid" reason but as far as I know it's irrelevant to Revenue why you stop working and all that matters to them is how much you earn in the year and how much tax you owe (or they must refund). If I decide to give up work and live off my savings* then that's my prerogative and Revenue must surely refund any overpayments of tax that arise? On the other maybe if I decide to do this then I lose the ability to claim a PAYE credit or something?

* Note that I would not be fraudulently claiming Jobseekers Allowance/Benefit or anything like that.
 
Last year I had to complete a P50 in July. No valid reason had to be given on the P50 form as to why I was not working. The P45, which you return to them with the P50, just had resigned on it as a reason for leaving. I then returned a new P50 every 8 weeks (as per the instructions on the P50). I did not have to explain why I was still unemployed. It was a simple declarion that I hadn't earned any money, other then UB, since my last file P50. You don't get your tax back for the whole remaining of the year - just for 8 week periods.
 
Sorry, just to correct. I submitted one P50 in July and then had to complete at 8 week periods a simple declaration that I was still unemployed and there claimed back another 8 weeks for taxes owed. It was not a P50 every 8 weeks.
 
I am thinking of claiming tax back just before I go to Australia in March for 12months

How can I claim tax every 8weeks from the other side of the world?
 
half scot said:
I am thinking of claiming tax back just before I go to Australia in March for 12months

How can I claim tax every 8weeks from the other side of the world?
Click to expand...

I don't think you need to submit a return every 8 weeks. I think you just send them a letter stating that you are going to be out of the country for the rest of the year.
 
If you are not going to be out of the country for the remainder of the year then you submit a signed declaration every 8 weeks. The declaration to complete is enclosed with the notification of the amount of taxes due to you up to a certain date. It states that if you are still unemployed 8 weeks after this date you sign and return another declaration for a further possible payment of back taxes. All these instructions are in this declaration.
 
half scot said:
I am thinking of claiming tax back just before I go to Australia in March for 12months

How can I claim tax every 8weeks from the other side of the world?
Click to expand...

I wouldn't imagine there would be too much tax to be paid back if you are claiming so early in the year.
 
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