Tax dodge of the week: avoid paying during a career break

If you are in the PAYE system and take a year off, it is very likely that you will have overpaid tax in that year and be entitled to a repayment.

Millions of us unwittingly pay more tax than we need to, says Steve Lodge in the FT. The National Audit Office recently reported that we may have been paying £340m a year too much through the PAYE system and that processing errors left more than half a million taxpayers £290 out of pocket in 2006-2007.

Then there are the mistakes we all make: failing to reclaim tax deducted at source from savings accounts, erroneous entries on tax returns and, for higher-rate taxpayers, failing to claim the 18% tax rebate on pension and Gift Aid contributions.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.