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Posted Fri, 23 Sep 2022 12:18:24 GMT by Andrew Smith
I have been made redundant and want to claim the overpayment in tax I have made in the year. I'm not sure if i will make any other earnings for the rest of the tax year, however that isn't 100% for sure. I just want the overpaid tax refunded to me asap. on the online form there are two options: - 1, I am actively seeking employment and have been unemployed for four weeks or more and have not claimed any of the taxable benefits listed on page one 2. I don't expect to go back to work (including part time or casual employment) before the start of the new tax year on 6 April. I don't get a pension from my old employer and have not claimed any of the taxable benefits listed on page one Can i assume that option 1 will result in awaiting HMRC to wait until the P800's are sorted for the year until i get a refund, whereas option 2 will result in my refund being sorted now? I understand that if i get a refund and then get another job i would have to go on BR w1/m1, but in the uncertainty I would like to get my overpaid tax refunded asap, so can I assume that option 2 is the best one to tick? Thanks!
Posted Mon, 26 Sep 2022 12:53:26 GMT by HMRC Admin 17

Option 1 would give you a refund when the claim is processed based on the income and allowances up to that particular date.

This then  allows you to resubmit a claim every 4 weeks for a further repayment if you are still not working/claiming benefit.

If you choose option 2, then yes this will give you a refund based on the P45 being your total income for the year.

Should you then take up employment or claim benefit, this will automatically be liable at basic rate for the remainder of the year.

Depending on your level of income already received, you could end up underpaid at the end of the tax year should your total income
fall into the higher rate tax bracket   .

Thank you.

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