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- June 6, 2020 at 12:49 pm
Respected Sir,
My study text states that “in the event that the amount of tax already paid under PAYE is greater than the liability, a refund will be given via the self-assessment system.”
How is this possible sir? how can the income tax paid on Employment income be more than the SUM of all other sources of income including employment income itself? Can you give an example wherein the aforementioned scenario will take place?
June 8, 2020 at 2:44 pmMost employed persons have little or no other sources of taxable income in real life (not in exam questions of course!) so that they only have employment income, but the circumstances of an employee may change – they might become redundant, they may change jobs and have a lower salary, or an individual may no longer qualify for a benefit such as a car, meaning that the PAYE code being used had anticipated a higher level of income that does not then arise resulting in an overpayment of tax.
Once again however this is an irrelevant issue in terms of you passing this exam.
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