Tax refunds during sabbatical

Hi everybody,

I recently took an unpaid sabbatical from work to go and smell the roses. It started in September 2007 and I am due back in the office in March 2008. When the time off started I went to the tax office in the hope of getting some of my tax money back: Obviously my tax was calculated on a 12 month expected working year, when I effectively only worked and got paid for eight months.

The tax office told me to come back again in January as I was still officially employed by my company and hadn't left them. They advised that they would be able to help me once I have my year end tax papers from the office. I am not drawing dole or benefits and am just living on savings.

I mentioned this to a friend of mine the other day and he casually remarked that they would probably arrange tax credits. It then dawned on me that he was probably right. I am aware that in the long run it should not make a huge difference to my finances overall whether I get a one off tax refund now or have to pay less tax instead in the working months ahead, however, I really want to only use my savings when I really have to and had hoped that a lump some the equivalent of roughly four months (Sep-Dec) calculated tax payments could better help me over until the time that I am back getting paid through my wages.

That friend I spoke with recommended visiting your website and asking for advice. Can someone here help explain whether there is a possibility of getting a lump sum tax refund rather than a change in tax credits in my situation and how I would need to go about it?

Thanks
Holger

I would expect them to do a P21 balancing statement for 2007 based on the full knowledge of your affairs and then issue a refund if you are owed tax back (which would seem to be the case). Then they will probably issue your 2008 tax credits as normal and once you start working you will get the benefit of the January/February credits (along with your normal monthly ones) once you return to work. Just ask Revenue what way they will deal with this? I think the issue of getting advice first is more relevant if you are approaching them to deal with outstanding tax liabilities.

This is pretty much what I had hoped they would do. Thanks for your help. At least I know what to ask for with them.