Shouldn't every FT worker get a tax rebate?!

[Ch0cDr0p]

Am I being an idiot? I can't get my head around it. I work FT and salaried. I earn above the £12,570 tax threshold like many, shouldn't we all get a tax rebate each year if we are paying 20% on all of our earnings above the 12570?

Has she been paying emergency tax?

Sounds like your dc has been given an emergency tax code which doesn’t have personal allowance deducted (given where it’s a second job for example) - if that’s the case they need to get onto HMRC and fix it, and yes they will get the money back, either via PAYE (correction of tax code) in subsequent months or at the end of the tax year if not sorted in time to receive it all back.

Your personal allowance is tax free and this is determined via your tax code for PAYE, so no, every full time employee does not get a rebate! However if you earn over £100k your personal allowance is tapered down 😡

If she’s on her 3rd job this year is it because she’s already had her tax free allowance?

i.e if she’s earned 12570 in job 1 and 2, not paid any tax, so in job 3 that takes her over the allowance and will pay 20% on the full amount until march when the next tax year kicks in.

This

If they are being taxed on all of it sounds like an issue with tax code maybe

I agree with @RaspberryRipple2 . It sounds very much as though they are on an emergency tax code. This will be corrected after a couple of months if you stay with the same employer but if you move about a lot then there won't be time to do it:

"...who isn't salaried and in first year of employment and in their 3rd job this year (seasonal work for summer, pocket money job and just started an apprenticeship)"

Now that they have started an apprenticeship it should be sorted out reasonably quickly. If they are still on the emergency tax code after three months then they should contact HMRC.

The normal tax code is 1257L if there is no other employment. Your personal allowance of £12570 is split over 12 months, meaning that you don't pay any tax on the first £1047.50 of earnings each month. So you get the allowance as you go through the year, hence we don't all get tax rebates at the end of the eyar.

If the code is BR or 0T then they will be paying 20% on everything. Your DC should have been asked to complete a Starter Statement when they started, if they did not have a P45 to hand over. If they ticked the box that says they have had another job, then they will be on some sort of emergency tax code.

If they contact HMRC they can discuss if its their only job or whatever, and get their tax code changed. A tax code can also be split between 2 jobs if both are still under your personal allowance.

I'm going to bet her payslip shows a tax code of "BR". This is what we used to call "emergency tax" whereby either HMRC or the employer don't know what code to use, so use this in an "emergency" to ensure tax is deducted.

My DM ended up on a BR tax code for 3 years before I realised, and I got her a whopping tax rebate back. This was before it was all digitised though, so it shouldn't happen now.

I'm also going to guess that your DC has had at least one other temporary job before, which they might never officially have left - a zero hours contract maybe?

HMRC will apply the 12,570 personal allowance to the first job, then any subsequent job gets a BR code, at least initially, until they either realise or are told otherwise.

Your DC should call HMRC (0300 200 3300) and say you think the tax code is wrong. Be prepared with information about what they've earned so far this year and what their salary is likely to be for the remainder of the tax year. They should then adjust the tax code accordingly.

Ah - added the point about them having another job beforehand before I read all your posts OP.

This will be the problem. HMRC are applying her 12,570 personal allowance to the wrong job.

Give them a call and they'll sort it out, but they will be due a rebate. It will likely come back through their payslips for the remainder of the year though.

You only get a rebate if you've overpaid tax.

If they pay too much tax because their tax code is wrong it will either be taken off next year's tax or repaid.

Well in that case, they are probably still on an emergency tax code.

If the tax code is wrong it will get sorted out after April next year and a rebate issued.
You can check on Gov Gateway.

I took early retirement a couple of years ago and was briefly working at a little PT job. I quickly twigged that I was paying tax on the whole of my pension and the job. By the June of the following tax year the Inland Revenue notified me I had overpaid and a look on Gov Gateway showed the figures. I entered my bank details and the rebate (several £k) was repaid a couple of days later.

You can ring them and apparently they are very helpful but I was content to let it sort itself out.

Do you understand what a tax code is OP? I'm not sure that you do.
It basically tells your employer how much you can earn before they have to deduct tax from your pay. If you get the standard personal allowance then your tax code will be 1257 (ie £12570 without the 0 on the end). Once you earn over that amount you will be taxed on anything above that figure. Your earnings up to £12570 won't have any tax deducted from them. Therefore, unless your employer makes a mistake, or you have 2 jobs with spilt tax codes, you are unlikely to get a tax rebate as you've been taxed the correct amount through PAYE.