total salary, 12,500, should i pay tax?

P

paperclip

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hi, here's my situation, i'm currently on a career break from work.

i was given a lump sum, and including holiday's and first couple of weeks work in 2010, my total salary for 2010 is roughly 12,500.

i was taxed at the high rate, in my first pay cheque, then the 10k lump sum was taxed at almost 50%.....

I had a p50 filled out, and expected to get most if not all of my tax back... i just checked my account, I got a small refund, but am still down over 4k on what i expected....

my question, if my total earnings for a tax year is only 12,500... should i not be free from paying tax?

i'm not in the country, traveling, so am relying on the lump sum...

cheers
 
You'll have to with until the end of the tax year for your refund. Cause your credits cut-off are used on a weekly/monthly basis and therefore you can't use all your credits and cut-off in the first two months of the calendar year.

Presuming you don't work again in 2010, you will be due a large refund at the end of the year as your credits and cut-off will have built up unused.
 
If you intend to be away for the rest of the year, you can write to Revenue and explain the situation. Previously, they would process the refund on that basis.
 
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