UK taxes; taxes refunded due to low income?

I'm trying to look into whether this is true or not, and if so what do I need to do, but one of my co-workers told me that if you make less than £7,000 (it's not exactly 7,000 but I don't remember the exact figure) in a year, then you're entitled to all of your tax money back that's come out of your wages, you just have to get your tax status changed I think he said. I only just started working at the end of July due to only having received FLR and permission to work in the springtime, so when I added it up I think I'll only have made around £4,000 by the end of the year, so if this is true I suppose I should qualify. I was just wondering if anyone knew anything about this and could tell me more?

Yes contact the HMRC and ask them to review it.
http://www.hmrc.gov.uk/incometax/overpaid-thro-job.htm

good luck!

Yes, but the UK tax year runs until April doesn't it?

Yes it has to be the tax year...
If LAST year April 2009 to April 2010 you paid taxes and only made 4K then you can get a refund from then.
This tax year isnt over yet so yes you need to wait.

When you started working, you should have completed a P46, and ticked box A. This should have given you the emergency tax code of 747L. If so, then if you earned less than about £143 in a week, no tax would be deducted. If you didn't use your allowance, this is brought forward. So for the first two months of the year, approximately that you didn't work (from April to July), you should have accumulated around £1150 of tax free pay, in addition to the £143 per week.

If, for whatever reason, you did not complete a P46, or if you ticked the wrong box, you may be on a 0T W1/M1, or a BR tax code; this means that you are not receiving the personal allowance

If this is the case, then simply call HMRC on 0845 300 0627, and ask them to change your tax code to 747L. You'll need to have your National Insurance number to hand, and probably your employer's PAYE reference number (this is three numbers, a slash, two letters, and then (up to) five numbers e.g. looks like 123/AB45678) They will then notify your employer, and you will then receive the overpaid tax through your next payslip (it may take a couple of weeks for them to inform your employer, and your employer to update the records).

If you post your tax code (this is the equivalent of W-4 withholding), then I'll be able to help more, but I suspect that you're on a 0T W1/M1 or BR code instead of a 747L code.

Andrew

Yes it has to be the tax year...
If LAST year April 2009 to April 2010 you paid taxes and only made 4K then you can get a refund from then.
This tax year isnt over yet so yes you need to wait.

You don't need to wait. It's easier for current year than previous years. Just one phone call is all you need...

Yes it has to be the tax year...
If LAST year April 2009 to April 2010 you paid taxes and only made 4K then you can get a refund from then.
This tax year isnt over yet so yes you need to wait.

No, I was thinking just of this year, January 2011 through the end of next month. April 2009-2010 I was still living in the US and working all of that year so I wouldn't have qualified. Don't know if I will have made over the £7,000-some odd pounds by April of 2012.

When you started working, you should have completed a P46, and ticked box A. This should have given you the emergency tax code of 747L. If so, then if you earned less than about £143 in a week, no tax would be deducted. If you didn't use your allowance, this is brought forward. So for the first two months of the year, approximately that you didn't work (from April to July), you should have accumulated around £1150 of tax free pay, in addition to the £143 per week.

If, for whatever reason, you did not complete a P46, or if you ticked the wrong box, you may be on a 0T W1/M1, or a BR tax code; this means that you are not receiving the personal allowance

If this is the case, then simply call HMRC on 0845 300 0627, and ask them to change your tax code to 747L. You'll need to have your National Insurance number to hand, and probably your employer's PAYE reference number (this is three numbers, a slash, two letters, and then (up to) five numbers e.g. looks like 123/AB45678) They will then notify your employer, and you will then receive the overpaid tax through your next payslip (it may take a couple of weeks for them to inform your employer, and your employer to update the records).

If you post your tax code (this is the equivalent of W-4 withholding), then I'll be able to help more, but I suspect that you're on a 0T W1/M1 or BR code instead of a 747L code.

Andrew

I don't remember what box I ticked when I started my job, I filled out so many forms and this was a few months ago so I didn't commit it to memory. My tax code on my wage slips says 747L1. I do make over £143 in a week though.

Thanks everyone for all the info. This is still all really confusing to me, but I really appreciate all the help!

Does this apply potentially to my husband? He arrived in June, and worked July, August, half of Oct and will possibly work all of Nov. and then we are returning back to the US. Is the £7000 a gross value, or net? He's probably paid about £1k in taxes and it would be good to get some of that back.

Unless it would effect our US taxes next year, it seems a good idea to pursue this. 

Does this apply potentially to my husband? He arrived in June, and worked July, August, half of Oct and will possibly work all of Nov. and then we are returning back to the US. Is the £7000 a gross value, or net? He's probably paid about £1k in taxes and it would be good to get some of that back.

Unless it would effect our US taxes next year, it seems a good idea to pursue this. 

Broadly speaking to qualify the personal tax allowance one either needs to be a citizen of an EEA country or UK resident for tax purposes.  Is he UK tax resident?

Broadly speaking to qualify the personal tax allowance one either needs to be a citizen of an EEA country or UK resident for tax purposes.  Is he UK tax resident?

I'm not sure how to calculate if he's a tax resident, but he is a British citizen.

HMRC6 will give you HMRCs view on residence for UK tax purposes.
http://www.hmrc.gov.uk/cnr/hmrc6.pdf

As a citizen of an EEA country he qualifies for a UK personal allowance.

He probably needs to file a UK tax return to self-assess his residence status and income.

Any UK income is of course reportable in the US if he is a US person for US tax purposes.

Does this apply potentially to my husband? He arrived in June, and worked July, August, half of Oct and will possibly work all of Nov. and then we are returning back to the US. Is the £7000 a gross value, or net? He's probably paid about £1k in taxes and it would be good to get some of that back.

Unless it would effect our US taxes next year, it seems a good idea to pursue this. 

What is his tax code? If he is employed by one employer, and does not have any benefits e.g. company car, then his tax code should be 747L. If it is anything else, then he possibly has overpaid tax. If he calls HMRC on 0845 300 0627 and explains, then he should have his tax code changed to 747L, if it is not already. This will give him an allowance of three quarters of his tax allowance (i.e. from April-November = 8/12 months) = £5606 tax free. The other £1868 - being the tax allowance for December-March will not be available to him through his tax code, however he will be able to get this refunded by filing P85 with HMRC. Thius will ensure that he gets back the rest of the money owed.

I don't remember what box I ticked when I started my job, I filled out so many forms and this was a few months ago so I didn't commit it to memory. My tax code on my wage slips says 747L1. I do make over £143 in a week though.

Thanks everyone for all the info. This is still all really confusing to me, but I really appreciate all the help!

747L1 means you are taxed on a Week1/Month1 basis (i.e. not cumulative). Therefore, you will not receive the personal allowance for the 3 months you weren't working (you said you started July, so April, May, June).

Therefore, call HMRC on 0845 300 0627, and ask to be put on a cumulative tax code (747L); this will give you the personal allowance for the weeks you weren't working. You should receive the money back in your paycheck.

747L1 means you are taxed on a Week1/Month1 basis (i.e. not cumulative). Therefore, you will not receive the personal allowance for the 3 months you weren't working (you said you started July, so April, May, June).

Therefore, call HMRC on 0845 300 0627, and ask to be put on a cumulative tax code (747L); this will give you the personal allowance for the weeks you weren't working. You should receive the money back in your paycheck.

Caution, caution, caution! Not everyone coming to the UK is entitled to the UK personal allowance (the law changed back in 2008).  If non-UK income including before arrival or from a rental property back home was greater than £2,000 than the personal allowance of £7,475 may not be available. Read HMRC6.