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How can you qualify for a PAYE (pay as you earn) refund often known as a p60 income tax refund? The p60 and p45 refer to the tax forms that you get from your employer. The form p45 is issued if you leave your employment before the end of the tax year and the form p60 is issued at the end of the tax year. The way the PAYE system works is that it is usually quite accurate for most straightforward situations but it does not handle very well anything that may be slightly out of the ordinary. Often if you leave your job part way through the tax year then you will not have had a full years worth of personal allowances utilised against your income. This is nearly always the case if you leave the UK before the end of the tax year so that you do not re-commence employment in the UK and even if you stay in the UK you do not have any other taxable income to use up your allowances then you will probably be due a tax refund. This could often be simply because you may be a student and work between terms. The other way that this often applies is for people starting employment part way through a tax year and perhaps then they have an emergency or month one code which quite often happens as employers' seem to be quite lazy in not checking if their new employee has a p45 or indeed in getting them to fill up the correct forms to get an updated PAYE code number. If you have been taxed on a month 1 code or an emergency tax code and have only worked part of the tax year you will probably be able to qualify for a paye income tax refund. You may also qualify if a benefit has been coded into your PAYE code that you are no longer receiving such as a medical or a car benefit. Often you may be able to claim for expenses that have not been reimbursed to you or have been reimbursed at a rate lower than that at which you can actually make a claim. This can be where you have to use a car to carry out your employment and either you do not receive a mileage allowance or one that is paid at a lower rate below what you can get tax relief on. If you have been in the same position for a number of years you may be able to make a refund claim going back for 6 years which could generate quite a large income tax rebate. You may also have equipment that you have purchased for you to properly carry out your employment that you have not claimed for. This can vary from trade to trade but one to mention is that of car mechanics where quite often they supply or buy their own tools. The Author writes many articles on reclaiming Income Tax in the UK and for further information one of his web sites is at Paye Refund
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