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Question about income tax computation (F6 UK)

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Question about income tax computation (F6 UK)

What if employee salary is very small, say 6000 GBP, less than personal allowance (9440 GBP). Employer has already deducted income tax at source.
After computation, income tax payable would be negative. Will HMRC return to employee paid by employer tax?

October 10th 2014 AN ACCA USER 140 Points

2 Replies

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Yes HMR will reimburse

October 11th 2014 AN ACCA USER 140 Points 1 Flag
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The personal allowance is to deduct from the income received during a year and charge income tax thereafter.

If the salary is say GBP 6,000 (going by your example), the relief will be deducted i.e. 6,000-9,440=-3440. But the taxable income cannot be a negative and therefore will be NIL. And therefore also income tax is NIL.

HMRC cannot refund the person.

Regards,
Yagnik

October 25th 2014 AN ACCA USER 1,850 Points
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