Tax Help

[ell]

No. See my reply. For starters the tax man won't send out rebates unless you go on self assessment and trust me, you don't want to do that.

Im on PAYE and have had rebates a few times before mate

 

[crublue1]

Im on PAYE and have had rebates a few times before mate

Me too, in fact I've just recently had one. They wrote to me first, saying I had paid too much tax last year.
You can go online and claim it, (which I did) in which case the money goes in your bank, or you can just wait, and after a few weeks they send you a cheque.

 

[Wafty Cranker]

When does the 40% tax kick into effect? Does it kick in when you’ve accumulated the £50k, or is it worked out on a monthly basis? For example if you earn £20,000 a year, but one month did £4000 in overtime and bonus’ this months take home pay would easily put you into the 40% tax bracket if this matched for a year. So do you pay the 40% on anything above the average salary for a £50k job, or do you still pay the 20% for everything accumulated over a year regardless of you have a mega month, until you hit the £50k, then 40% after this?

It should be done as evenly as possible. So for example, assuming a standard tax code, if your salary is £70k and it stays the same throughout the tax year, your payslip each month will be near enough the same.

In the scenario you gave, it depends what month you did the overtime. If you did it in April you’d pay some at 40%, but it should sort itself out later in the year.

If it’s wrong come the end of the tax year you should either get a refund or your tax code be adjusted for the next year.