Tax refunds may need to be requested for a number of reasons; one of which is being unemployed. Through this blog post, we will discuss the steps entailed in accessing a P60 form if someone is unemployed. Additionally, we will also discuss different situations under which tax refunds need to be made as well as review some basic concepts regarding tax deductions.

How Can I Get A P60 If I Am Unemployed?

If you are unemployed and need access to your P60 form, you can log in to your personal tax account and gain access to the information that you require. You can also print the page that appears on the screen.

If you have forgotten your login details, you can contact HMRC and request the desired information. 

To claim a tax refund using the P60 form, claimants will need to share the following details with HMRC:

  • their earnings in total
  • the amount of income tax that they have paid
  • the amount of income tax that they have paid in excess

Additionally, they must also provide details of their National Insurance number and employer reference number.

In the case that a taxpayer has overpaid their tax due to any of the following reasons, 

  • being put on an emergency tax code due to starting a new job,
  • becoming unemployed during the tax year
  • having two jobs simultaneously, or
  • switching from a full time to a part-time job

they can reclaim the amount from HMRC after the end of the tax year. Claims for overpaid taxes can be made up to four years. This means that an overpaid tax in 2022 can be claimed until 2026.

When you call HMRC about your tax refund due to overpayment, you must make sure that you have the following information available with you:

  • your personal details: including  your full name, address and date of birth
  • your National Insurance number
  • details of your employers or pension providers and their PAYE scheme reference number
  • Detailed estimates of your earnings and/or pensions from each source for the current tax year (with documentation)

You will also need your P60 form in the following situations:

  • to reclaim overpaid tax
  • to apply for tax credits
  • to serve as proof of income (if someone applies for a loan or a mortgage)

Tax refunds are usually paid by HMRC within 5 working days directly to the claimant’s UK account. If you do not claim it within three weeks, HMRC will send you a cheque through the post.

What Does A P60 Form Show?

A P60 form serves as a statement that shows details of a taxpayer’s income and paid taxes. It includes the following information:

  • The total amount of your income
  • The total amount of your tax deduction 
  • Your NIC contribution for the year
  • Your previous salary from an earlier employment
  • The total amount of previously deducted taxes
  • Statutory payments received by you (these may include maternity and paternity pay)
  • Your final tax code
  • Details of your student loan deductions (if any)

What Should I Do To Reclaim Overpaid Taxes On Pension?

To reclaim overpaid taxes while withdrawing funds from their pension, you can use the P55 introduced by HM Revenue and Customs for the tax year 2021-22. 

This form is only to be used if claimants:

  • do not have a P45
  • are not employed to work
  • are not claiming benefits

To access the P55 form online, claimants can use their Government Gateway user ID and password. If they don’t have one, they can register for the same.

The P55 form can be filled out online or by taking a printout and should be submitted to the HMRC by overtaxed individuals who fulfil the following conditions regarding a withdrawal from their pension pot: 

  • they have withdrawn a part of their pension
  • they will not be making regular withdrawals
  • their pension body has not made a refund

As a basic taxpayer, you would have been taxed at 40 per cent for making withdrawals from your pension. By filling in the P55, you are making a repayment claim to the HMRC to be repaid the excess tax deduction. If you fail to do so, you will have to wait until the end of the tax year for HMRC to pay back this amount. 

Can I Get A Tax Refund Through Wages?

Yes, if you have overpaid your tax paid through wages under the PAYE scheme, you can get a tax refund by contacting the HMRC. 

At the end of a tax year, HMRC sends all taxpayers a P800 form that outlines details of their incomes and tax deductions for the entire tax term. Sometimes, you will find through the P800 that you are due for a fund. If this is the case, you will also be told whether you will be repaid the amount through an online bank transfer or a cheque sent through the post.

If not, you can reconcile with your bank statements and books of accounts to make sure that the document does not carry incorrect data and then contact the HMRC. To calculate your taxes and income accurately before contacting the HMRC, you will need the following:

  • your form P60 and/or P45 from your employer(s) or pension provider(s)
  • your form P11D from your employer, if you receive taxable benefits-in-kind
  • details of taxable state benefits that you have received
  • bank statements and  Building society statements 
  • dividend certificates
  • details of rental income and expenses

The reason(s) why salaried individuals may overpay their taxes through a PAYE scheme may be classified as follows:

  • They started a new job and were assigned an emergency tax code on a temporary basis
  • Their employer used an incorrect tax code
  • They held a job for a part of the year (and not the entire tax term)
  • They had more than one job at the same time
  • They are a student who only worked during holidays
  • Their “other incomes” have been reduced
  • They stopped working in the middle of the year and had no taxable income or benefits
  • Their circumstances changed; such as moving from full time to part-time work

What Are Tax Codes?

Tax codes are a combination of letters and numbers that determine the amount of income tax due on an individual. While the letters indicate your financial position and how it relates to your personal allowance, the numbers tell your employer pr pension provider the amount of tax-free income that you are eligible for in that tax year. 

For instance, 1257L (currently the most common 2021-22 tax code in the UK) refers to the new Personal Allowance rate for 2021-22, which is £12,570 and the letter “L” indicates that the individual is entitled to this amount of tax-free income. Any taxes that are to be charged will be above additional amounts beyond this figure.

How Are Tax Codes Calculated?

Tax codes are a combination of letters and numbers that determine the amount of income tax due on an individual. While the letters indicate your financial position and how it relates to your personal allowance, the numbers tell your employer or pension provider the amount of tax-free income that you are eligible for in that tax year. 

The following steps are followed by the authorities while assigning tax codes:

  • Step 1: Your tax allowances are calculated. In most cases, this is an individual’s personal allowance added to any other allowances and job expenses.
  • Step 2: Your deductions are calculated. These are incomes for which tax has not been paid and may include any part-time work or certain state benefits.
  • Step 3: The deductions are subtracted from the tax allowances. The result is your pre-tax income. If this amount equals personal allowance, your income remains tax-free.

How Are Tax Identification Numbers Used In The UK?

Tax identification numbers are used to track and monitor the tax accounts of individuals. Although the term TIN Number is not specifically used in the UK in its strictest sense, the HMRC issues two TIN-like numbers to members of the public. The purpose and use of these are described below:

  • The Unique Tax Payer Reference (UTR): This is a ten-digit set of numbers issued by the HMRC to individuals and businesses who qualify for paying tax returns in the UK. 
  • The National Insurance Number (NINO): This includes two letters which are followed by six numbers and then only one of the letters between A, B, C and D. If you are an employee, you will find this number on your payslip and on a Statement of Account issued by HMRC. It links individuals to their records of national insurance contributions, tax payments, student loans and social security benefits.

Conclusion:

Unemployed individuals can easily gain access to their P60 either by accessing their personal tax account online or requesting the HMRC for it. In case of overpaid taxes, refunds can be claimed from HMRC after the end of the tax year. Claims for overpaid taxes can be made up to four years. This means that an overpaid tax in 2022 can be claimed until 2026.

FAQs: How Can I Get A P60 If I Am Unemployed?

How can I access my P60 online?

In order to view your P60 online, you need to login to your personal tax account, click on the Review tab in the PAYE Services section and enter the year to be accessed in the drop-down menu,

Can I request a P60?

Yes, you can request a P60 either from your employer or access it online through your personal tax account; or if nothing else finds any results, you can request the HMRC for a copy.

Can HMRC send me a P60?

When generated by HMRC, P60 forms are directly sent to employers. You can ask your employer for a copy of your P60 form. If you are unable to do so, you can then ask HMRC as well.

What Is A P60?

A P60 form is a statement that shows details of a taxpayer’s income and paid taxes. Mainly, it includes information on the total amount of your income as well as the total amount of your tax deduction and NIC contribution for the year.

What Are Tax Codes?

Tax codes are a combination of letters and numbers that determine the amount of income tax due on an individual. While the letters indicate your financial position and how it relates to your personal allowance, the numbers tell your employer or pension provider the amount of tax-free income that you are eligible for. 

References:

P60 tax refund examples – what do you need to know?

What Is A P60?.

P45, P60 and P11D forms: workers’ guide

Claim back a flexibly accessed pension overpayment – GOV.UK

How do I claim back tax I have overpaid through PAYE on wages or pensions? | Low Incomes Tax Reform Group

Claim a tax refund – GOV.UK

Estimate your Income Tax for the current year – GOV.UK

What if I pay too much tax?

Tax codes – GOV.UK

P45, P60 and P11D forms: workers’ guide

Claiming your tax rebate after losing your job | MoneyHelper

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