Thinking of career break-can i claim back income tax?

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LouLouBelle

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I am thinking of leaving work at the end of the year to travel abroad and study a language. I have been told by friends that I would be able to claim back the PAYE I earned in 2006. Could anyone tell me if this is the case. Do I have to leave in a certain month? How would I claim it back?
 
There are several threads on this issue already which would be worth rooting out.
 
Thank you Clubman. I have looked at the threads on moving to Australia and Canada and I am still a bit unsure. I am confused because a friend told me that you have to leave in the middle of year so that you have tax credits remaining? Assuming I leave work on the 30th December 2006 having worked for the previous two years would I get all of the PAYE back that I paid in 2006/2005? Does it depend how long you are not working for? How long do you have to wait before you can apply for the tax back after leaving work? I understand from the threads that it is a P50 that I must complete.
 
LouLouBelle said:
a friend told me that you have to leave in the middle of year so that you have tax credits remaining?
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That sounds correct.
Assuming I leave work on the 30th December 2006 having worked for the previous two years would I get all of the PAYE back that I paid in 2006/2005?
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No - certainly not 2005 tax. An probably not 2006 tax since you have used up your tax credits.
Does it depend how long you are not working for? How long do you have to wait before you can apply for the tax back after leaving work?
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As soon as tax credits start accumulating unused you can claim tax back.
I understand from the threads that it is a P50 that I must complete.
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Form P50 - First Claim for Repayment During Unemployment
 
If you leave employment on 30-12-2006, you will get nothing back as you have used all your credits and bands for 2006 (unless your tax was incorrectly calculated by your employer, unlikely).

To benefit from a tax refund in these circumstances you are better off leaving in the first six months of the tax year.
 
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