Can someone explain taxes?

[Zahrah5]

Hi

I am new to this system and looking for some help as taxes are very complex issue.
1)
First time I got paid was in March 2014- last month of the tax year if I understand it correctly. My gross pay for the month was under 10k but I had couple of thousands taken out in taxes as I am supposed to pay 40% tax according to my year gross salary.

Do I understand this correctly that since this paycheck felt into last month of the tax year and in that year I did not make 10k which is tax free I should get all the tax I paid back?

2. As I said I am paying tax at 40%. Once I go to maternity, I am getting 6 months full pay and then 3 months SMP and then 3 months nothing, would it work this way that if my yearly earnings decreases under the 40% threshold due to some months being paid none or little I would only pay 20% tax? and how they will give me back the already 40% witheld?

yes. If your total income for the tax year is less than your personal allowance you will get the excess back. Phone them up.

1. yes you will be due a rebate if you had no other income in year

2. PAYE should now work in real time so your tax should be adjusted on a month by month basis, rather than receiving a rebate at the year end. However again it is calculated on a yearly sum so if you are taxed too much you will get it back. It should be sooner rather than later.

I am surprised you haven't had a rebate for 2014 however, you need to chase that up. I take it you had a coding notice for 14/15 - did that not mention anything regarding the previous year?

thanks

I am not sure guys, I haven't received anything from anyone here, no notices.
I have been living in US and could do my federal and state taxes on piece of paper there, but here I am just puzzled how it works.
Looks like there is no annual tax return to fill here, in US we fill out tax return where we list our earnings, taxes witheld, credits, allowances etc and calculate tax due and then we either pay more, if we underpaid or we get back if we overpayed. So I am not sure how to get it back here or what to do or how do they know they should give me back?

Actually my job gave me accounting firm to do taxes for me for the first year- the one month I mentioned above, but they are not really helpful, they gave me loads of stuff to fill out which became even more complicated.

This is my (very basic) understanding of how UK taxes work:
If you are employed by a company, then your employer has to calculate your taxes for you under 'Pay as you earn' (PAYE).
If you are self-employed or you have other income, then you have to fill in a tax return and calculate non-PAYE tax yourself.
If you think you have overpaid tax, then you can ask for a rebate (from HMRC) or you can wait and see if HMRC think you have overpaid and send you a cheque.