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Posted Thu, 10 Oct 2024 18:48:54 GMT by atypicaladmin
Hello, I’m trying to clarify the implication of a figure on my payslips. I stopped receiving payments via PAYE in May. From that date the accountant then issued payslips showing 0 income. As this happened before the end of tax year a rebate figure started to appear in the PAYE tax column which my accountant informed me related to a rebate for tax overpayment. The same figure has recurred for 4 months, yet I’ve received zero communication from HMRC about this rebate nor how to receive it. Could somebody explain if they think a recurring monthly payment on the payslip seems right (is the rebate not a lump sum) and when/how I can expect to receive those funds. Any support received with thanks.
Posted Tue, 29 Oct 2024 09:56:49 GMT by HMRC Admin 17 Response
Hi,

This is correct and how a Cumulative tax code works,

The standard persoanal allowance this year is 12570, and that is given via the tax code 1257L, this is then applied over the 12 month period,

so you can earn 1047.50 every month before tax from Apr 24 - Mar 25, so if your pay drops to 0 income for a few months
you will not be using your monthly tax free amount,

the Cumulative code will then look back to you previous months and apply it agains the taxalbe earnings you have already had,
so you will get tax back from what you have already paid. 

Thank you .

 

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