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Tax Credits and Emergency Tax

how to claim emergency tax back

What are Tax Credits?

Under the tax credit system every individual is entitled to tax credits depending on personal circumstances. Every individual can claim a personal tax credit. PAYE taxpayers can also claim a PAYE tax credit.

For details of the main credits see information leaflet Leaflet IT 1 (Tax Credits, Reliefs and Rates)

What must I do to get my Certificate of Tax Credits and Standard Rate Cut-Off Point?

When you start work for the first time, complete Form 12A (PDF, 624KB) (Application for a Certificate of Tax Credits and Standard Rate Cut-Off Point), send it to your tax office and you will receive a Certificate of Tax Credits and Standard Rate Cut-Off Point.

How do I get the benefit of my Tax Free Credits?

Your tax credits are given to you for

a full tax year. So, whether you start work in the first week of the tax year or six months into the tax year, you still qualify for a full year's tax credits. As tax deductions are spread evenly throughout the year under the PAYE system, the total due is divided into 52 weekly/12 monthly amounts, depending on frequency of pay. Your employer grants these credits against your gross tax to arrive at your tax payable.

What happens if I don't follow the procedures above?

If an employer does not get either a:

he/she is obliged to deduct tax on the emergency basis when paying an employee's wages or salary. Under the emergency basis. a temporary tax credit is given for the first month of employment but tax deductions are increased progressively from the second month on.

Category: Taxes

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