Tax refund when stop working in middle of tax year.

[Kaukaliokas]

Hello everyone ! I hope you can help me with my tax refund !

This year i worked from beginning of tax year till end of september. I have earned £15000 and i was on tax code L1150, which means i was on £11500 tax free. So i earned only £3850 above my tax free allowance.
I paid £1895 for tax.

As tax free allowance is equaly spread to 12 months, i was paying taxes from beggining of april.
So thats £928 tax free a month. And
£5570 for 6 months- the period i worked this year.

So am i getting this 20% of £5570=£1150 refunded ?

I have the reason to think that i wont get this because my friend worked from october till end of tax year. Did not reach tax free allowance and got told by hm revenue that she is not getting anything. Even after she was paying taxes. Or maybe there is a difference in when you start or finish work.

I do appreciate your time and i hope you could help me with this mind breaking tax counting.

[AmanSood]

Hi, on the basis that you stop working part way through the year and haven't fully utilised your tax free personal allowance you should be entitled to a tax refund from HMRC.

[bibescu]

Hi,

If you do not expect to go back to work in this tax year, you can fill the form P50.
https://www.gov.uk/government/publications/income-tax-claiming-tax-back-when-you-have-stopped-working-p50

[JRG]

You say you've paid £1,895 income tax in 6 months, which, by my calculation, equates to an income of £15,225 in that same 6 months.

For the 6 months worked: Gross Income of £15,225, less £5,750 ( i.e. 6 months of the tax free figure) gives a Taxable Income of £9,475, which, at 20%, results in Income Tax of £1,895.

For the full tax year: Gross Income of £15,225, less £11,500 gives a Taxable Income of £3,725, which, at 20%, results in Income Tax of £745.

Provided you haven't worked since the end of September, and don't work up to the end of the tax year, you should get an Income Tax refund of £1,150 (i.e. £1,895 - £745).