The rebate calculator is designed to give you an estimate and your final tax rebate may be more or less than the figure suggested by the rebate calculator.
There are many reasons why the tax rebate received may be different to the figure provided by the rebate calculator. These reasons include, among others:
– NHS payroll departments do not always deduct the correct amount of tax each tax year. If too little tax has been deducted previously, this will reduce the amount of rebate due. But sometimes too much tax has been deducted, especially if your payroll department has applied the wrong tax code to your salary.
– The tax rate entered into the tax rebate calculator may not be the correct marginal tax rate that your employment income is taxed at e.g. in certain tax years your income may be taxed at 20% rather than 40% especially if your claim includes years in which you were an FY1 or FY2, on maternity leave or taking time out of employment.
– Reducing your employment income by your professional expenses may bring your income from the 40% tax rate into the 20% tax bracket reducing the amount of rebate due.
– The calculator does not take into account any other sources of income which you may have and these can affect the amount of any tax rebate due. Note that only rates that apply to employment income are included in the calculator.