If you have been made redundant it is important to know what you need to do to claim back any tax you might be owed.
When you leave your job you should make sure you receive a P45 as this is needed to pass on to your next employer or to the benefits office if you have to claim job seekers allowance for example.
The P45 tells your next source of income your previous pay and tax details and helps trigger any tax rebate that you may be due for that tax year.
Tax Rebate if You Have Lost Your Job
If you start a new job soon after being made redundant any overpayment of tax in that year should be refunded through your salary when you have started with your new company. If however you have a longer gap of unemployment after losing your job, your chances of overpaying tax in that tax year increases.
If you claim any benefits like job seekers allowance it is common to receive a tax rebate for the period up to your being made redundant.
Losing your job is rarely a positive situation especially financially and to help in this difficult time it is worth considering if you could be a due a tax refund UK for other reasons than being made unemployed.
Some common reasons for tax refunds under PAYE are:
- Wearing a work uniform
- Using your own car for work purposes
- Buying tools for work use
- If you have left the UK
- You pay membership into a professional body
You must claim a tax refund UK for the job expenses mentioned and should not assume you will receive tax relief for expenses incurred in your duties automatically.
It’s possible to make a claim for a tax refund for the last four tax years and pay less tax in the future if you still incur the expenses in your new job!
