Reclaim tax during unemployment

[pmurphy]

Hello all

I have a quick question that I hope someone could answer

I was made redundant on 30th June 2006 having paid 2440 euro tax in total (this appears on my P45)

After 8 weeks I sent in the form and my P45 to reclaim tax during unemployment.

I have since got a new job (Sept 14th)

However, the tax office returned my form and p45 and told me to take up the question of a refund for year 2006 with the new employer. I have reclaimed tax before and always got a cheque. This does not seem right at all? I was expecting about 600+ by way of a rebate, how on earth will my new employer sort this out for me?

Many thanks for your help
P M

 

[DrMoriarty]

I'm not an expert, and the Revenue [broken link removed] doesn't seem to address this, but you'll probably receive a tax credit in lieu of a refund cheque. Ask your new employer, but I'd imagine that at the end of the tax year you'll need to send the details in to revenue again and they'll reduce your tax liability accordingly for the coming tax year. I'm open to correction on this, though!

 

[Tenacious]

However, the tax office returned my form and p45 and told me to take up the question of a refund for year 2006 with the new employer. I have reclaimed tax before and always got a cheque. This does not seem right at all? I was expecting about 600+ by way of a rebate, how on earth will my new employer sort this out for me?

Revenue are correct here. If you had left your job without the intention of returning to work for the rest of the tax year you could have reclaimed some tax if you sent them a P50 along with your P45. Apart from this it is only prior tax years that you claim a refund from Revenue. Your new employer after receiving your P45 will make the necessary amendments on his payroll. You'll notice the amendments on your next payslip.

At the end of the year when you receive your P60 and if you feel your employer has deducted too much tax from you, then you can ask Revenue to send you a P21 and they will re-calculate your tax for you.

 

[asdfg]

Just to add, tax is calc on a cumulitive basis so any unused credits and SRCOP for the 10 weeks approx that you were out of work will be used to calculate your net pay. Your SRCOP and credits have been rising with no income. You will see a refund in your first pay slip or over a number of pay periods until your pay catches up with your SRCOP and credits when you start to pay tax again.

 

[Kiddo]

Revenue are correct here. If you had left your job without the intention of returning to work for the rest of the tax year you could have reclaimed some tax if you sent them a P50 along with your P45. Apart from this it is only prior tax years that you claim a refund from Revenue.

Wrong. You can claim a refund once you have been unemployed for more than 8 weeks regardless of what your intentions are regards going back to work. I did earlier in the year and am now back at work. It took Revenue about 6 weeks to issue the refund...so I was unemployed for about 14 weeks before I received the refund. In OP's case he was probably back at work before the Revenue had processed his claim and therefore told him to take it up with the new employer.

 

[asdfg]

If you have reclaimed your tax and this includes all your tax credits or a bigger proportion than you could have earned had you continued working you could find that you are taxed more than normal until the end of the current tax year. This is because you will have received more tax from your return than you should have at the point that you returned to work, on a cumulative basis.

Hope this makes sense. If not I'll try to explain by way of example