Two Yellow Cards But Not Sent Off
Football0 min ago
tax rebates?
2 Answers
Hi, my wife has recently finished working, probably for good, and keeps asking if she will be entitled to a tax rebate this year. I have no idea how they work this out, or if she will receive anything. Any answers greatly appreciated. thanks.
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Assuming your wife is under the age of 65 she is entitled to earn �5225 in the current tax year 2007/08 without deduction of Income Tax.
I imagine she has received a Form P45 from her past employer which will indicate her gross earnings and tax deducted therefrom.
Take the gross earnings figure deduct the amount of �5225 from it and the difference is her taxable income for the year assuming no further earnings until the 5th April next.
Tax is payable at 10% on the first �2230 of her taxable income figure and 22% on any amount above �2230 - assuming she is not a higher rate taxpayer - this will give you the total tax which should have been paid for the year.
Compare this figure with the tax deducted figure on the Form P45 and if the P45 figure is the highest of the two figures then the difference will be her tax rebate.
As we near the end of the tax year 2007/08 it is likely that the rebate will be small.
Please remember that no rebates are payable if the tax has not been paid over in the first place!
I imagine she has received a Form P45 from her past employer which will indicate her gross earnings and tax deducted therefrom.
Take the gross earnings figure deduct the amount of �5225 from it and the difference is her taxable income for the year assuming no further earnings until the 5th April next.
Tax is payable at 10% on the first �2230 of her taxable income figure and 22% on any amount above �2230 - assuming she is not a higher rate taxpayer - this will give you the total tax which should have been paid for the year.
Compare this figure with the tax deducted figure on the Form P45 and if the P45 figure is the highest of the two figures then the difference will be her tax rebate.
As we near the end of the tax year 2007/08 it is likely that the rebate will be small.
Please remember that no rebates are payable if the tax has not been paid over in the first place!
It depends on what you mean by "recently" . If it was in March , I doubt she'll get much of a rebate this year as tax year is almost finished anyway- it ends this week. But if it was January she'll get a bit back but the amount depends on her salary and tax code. There's not long to wait though- she can ring tax office shortly after end of tax year.
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