Martin Lewis has appeared on This Morning and explained how you could be owed a tax refund if you’ve lost your job in the current tax year.
In response to a question from to ask if she was ‘entitled to a tax refund after losing her job in October 2020 and is yet to find another job?’
Martin’s response could help many people who have lost their jobs in this tax year and are still unemployed: “So, when you get paid and let’s say you earn £20,000 a year, you’re allowed to earn £12,500 tax free each year.
“So, when your employer pays you each month it assumes you’re going to earn the same amount each month over the year and so it takes roughly off the 20% or whatever the amount is that you should be paying tax on each month.
“It assumed that you would earn £20,000 for instance and it took the tax off as if you did.
“Now, if you didn’t earn any more half way through the year then it’s likely you paid too much income tax because your earnings over the year were lower than it was assumed that they would be – and so too much tax was taken.
“If that’s the case, and as long as you’re sure that you’re not going to earn any more this tax year, which closes on April 5, then I would get in touch with the tax office now and ask how to get a rebate because you’ve paid too much tax.”
You can claim a tax refund and find all the information you may need by heading to the gov.uk website.
