Can I get tax rebate when unemployed or out of work sick?
You can get a refund of tax you have already paid if you were employed and find yourself unemployed or you are out of work due to illness. You can also get tax back if you are still employed but have paid more tax than you were liable for. For PAYE workers your tax liability is spread out evenly over the year. Your tax liability may be reduced because you are on unpaid sick leave or have become unemployed.
This means that when an employer calculates your tax liability, they actually calculate the total tax due from 1 January to the date which your most recent wages are paid. This means if your income is reduced, for example, by sickness or unemployment, you will have unused tax credits and may be due a tax refund.
You may also get a refund if your tax liability has been incorrectly calculated by your employer and you have overpaid tax. A tax refund may also be paid if you have purchased goods or services for which you can claim tax relief.
The amount of tax refund depends on:
- The length of time you have been unemployed
- The amount of tax you have paid
- The amount of tax credits you have used
- The amount of your weekly social welfare payment
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