Calis Beach and Fethiye Turkey Discussion Forum
Property For Sale in Calis Beach & Turkey => Moving To Turkey => Topic started by: SteveandSue on February 16, 2006, 15:04:28 PM
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For anyone of you lucky people who are planning to move out to your dream home permanently, consider trying to finish work on 1st Oct. (6 months through the financial year). This way you can claim 6 months tax rebate from the tax office. They will tax you from 1st April as though you will work a full year, so Oct 1st seems the best time to finish to reclaim as much as you can.
Hope this information is helpful (and profitable) to as many of you as possible.
SnS
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That is spooky - because that is the date we decided on today but I had no idea about the tax.
Teresa
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Not necessarily true, it all depends on your earnings in relation to your tax allowances for the year. :)
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Stoop is not correct - it works like this. I am going to simplify it for the sake of example and assume a flat rate of tax of 22% rather than the actual sliding scale starting at 10% - but the basis will be correct.
Assume an annual salary of £20,000 with an annual tax allowance of £5,000 - this would mean that tax is payable on £15,000 - and the tax man, via the Notice of Coding PAYE system will collect the same each month (You don't earn the tax free bit first and then pay tax on every penny).
So - £20,000 monthly = £1,666.67
Tax free amount (in this example) £5,000pa = £416.67
Tax payable monthly on £1,666.67 less £416.67 = £1,250.00
£1,250.00 at 22% = £275 tax paid per month.
If you stop working 6 months into the tax year you will have paid £275.00 x 6 = £1,650 ..... B U T .... you have only earned £10.000.
The correct amount of tax due is £10,000 earned less £5,000 tax allowance = £5,000 taxable at 22% = £1,100.
£1,650 tax has been paid but only £1,100 tax is due - This person can claim back £550.
It does not matter when in the year you stop working as if you earn less than you have been taxed on you are due a refund.
I hope this clarifies the situation - as I said it is more complicated than this but these are the basics.
Now my brain hurts.
Dave Nicholson
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Dave,
Not bad for a first post -lol. I knew none of the numpties on here would know the correct answer.
I hold my hands up and admit I was wrong :o I must have been out of action too long:(
Stoop:D
ps - if anyone is upset by me calling them a numpty please accept my humble apology - IT IS A JOKE:D
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Originally posted by stoop
Dave,
Not bad for a first post -lol. I knew none of the numpties on here would know the correct answer.
I hold my hands up and admit I was wrong :o I must have been out of action too long:(
Stoop:D
Stoop
Does that make you a numpty aswell ?
(http://www.telmessos.co.uk/smilies/mybrainhurts.jpg)
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Sure does, Crabbit - in fact a BIGGER numpty than those who didn't know the answer and didn't post.
My twisted sense of humour I suppose.
http://www.rabbitinwriting.co.uk/numpty.htm
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Tax allowance from 6 april 06 is 5035. Work for a few months from April until you have earned roughly this amount and claim all your tax back. Anything over £5035 is taxed at the relevant rates. Linda
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Having read the above replies, my brain hurts now.
Why can't life be simple?
It just sounded logical my way.
So David, in your example of £20,000 p.a. When is the best time to stop work.
Teresa, watch this space as you may want to amend your final date accordingly.
SnS
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Don't worry, I will go when I go and the tax rebate is the least of my worries. If I get something then that is nice but it will not be holding me up.
Teresa X
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Good for you Teresa.
Hope everything goes well.
SnS
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Stoop I reckon you need a fag!!! lol
Best Wishes.
ps if your thinking of throwing yourself out the window
look out for the guy on the fifth floor hes got a shotgun!!!!
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(http://i7.photobucket.com/albums/y275/stoopo/numpty.gif)