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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I earn 23643. I am single, and my tax code is 519L. I

Resolved Question:

I earn £23643. I am single, and my tax code is 519L.

I pay into my Local Government Pension Scheme (West Yorkshire - 6.5%). I receive an essential car allowance of £103.25 per month, which I understand is a taxable benefit (although this allowance is likely to be scrapped soon due to financial restraints). I also receive a milegage allowance (40p per mile, possibly to be increased to c. 60p per mile if essential allowance is scrapped).

If I take 3 months unpaid leave from work, does this alter my tax liability?
Submitted: 6 years ago.
Category: UK Tax
Expert:  Tony Tax replied 6 years ago.

When are you likely to take three months unpaid leave?
Customer: replied 6 years ago.

October, November, December 2011.

Expert:  Tony Tax replied 6 years ago.

When you take your unpaid leave you won't be using your personal allowance so when you re-start working in January 2012, you will have three months of unused personal allowance to use plus that for January 2012 so, depending on how much you earn to the end of September 2011 and what you earn when you get back to work in January 2012 you may get some of the tax you paid up to the end of September 2011 back.

Let me know if you have any queries.
Customer: replied 6 years ago.
Is this something i would have to apply for, or is this resolved through my PAYE? Plus given that I am unlikley to to received a pay increase in April 2011 (and therefore all figues are constant), could you estimate a likely amount of refund.

n.b To be clear i would not return to work until February 2012, as i would take January 2012 as annual leave.
Expert:  Tony Tax replied 6 years ago.
If you get a payslip for each month of your unpaid leave, you will probably get a tax repayment of about £124 per month.

If you get it all at the end of January because you have been take off the payroll for the duration of your unpaid leave, then you will get three times £124 off your normal monthly tax deduction.
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