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Do PAYE'ers get a rebate for working part-year?

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    Do PAYE'ers get a rebate for working part-year?

    I'm chancing my arm on a potentially stupid question here, but nothing ventured...

    I'm British, but was a non-resident until July last year when I started PAYE contracting via a brolly (Parasol). I finished up in February of this year, and plan to be not in the UK until after April.

    Should I be due a tax rebate for not working a full year?

    I ask because I *did* (eventually) get a rebate when I originally left the country half-way through 1999 after being a PAYE permie. Maybe it's changed since then...

    Oh sorry - I meant to say that I've called HMRC about this. The first guy I spoke to thought I'd likely be due a rebate, whereas the second said that being under PAYE meant that I wasn't.
    Last edited by tamper; 20 March 2006, 13:09.

    #2
    You should get a rebate. Parasol will have taxed you per month assuming you were going to work 12 months per year, so you've paid too much.
    Will work inside IR35. Or for food.

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      #3
      Whether or not you are due a rebate depends upon the amount of tax you have paid....

      However if the "correct" tax has been deducted then you are due a small rebate. Allowances are normally for an entire year not pro rata, but the PAYE system (which is only a form of advance payment) averages them to allocate them monthly.

      You can easily calculate the amount of tax actually due on you total income and compare this against what has been deducted. If you are due a rebate then you'd better ask for a tax return if you don't habitually get one.

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