Tax Calculate

    Part-Year Employment Tax Calculator UK 2026/27

    Employment Details

    Enter your employment details for part-year tax calculation

    Part-Year Employment Scenarios

    Common Situations

    • Starting a new job mid-year
    • Career breaks or sabbaticals
    • Redundancy or job loss
    • Maternity/paternity leave

    Tax Considerations

    • Personal allowance is annual, not pro-rated
    • May result in lower effective tax rate
    • PAYE code adjustments may apply
    • Potential for tax refunds

    How PAYE Works for Part-Year Employment

    Cumulative Tax Codes (Standard)

    Most part-year workers have cumulative tax codes (e.g., 1257L). PAYE calculates tax based on earnings to date, spreading your £12,570 allowance across the year. If you start in October, you get 6/12 of the allowance (£6,285) for that period. When the new tax year starts, the calculation resets.

    Emergency Tax Codes (W1/M1)

    Without a P45, your employer uses emergency code 1257L W1/M1. This divides your allowance by 12 (£1,047.50/month) and doesn't give you cumulative benefit. If you started in October, you only get 3 months allowance instead of the full amount for the year. Always provide your P45 to avoid this.

    Tax Refunds After Leaving

    If you don't work again in the tax year after leaving a job, you may have overpaid tax. Submit form P50 to HMRC to claim a refund. If your total earnings for the year are under £12,570, you'll get back all tax paid. HMRC typically processes refunds within 2-3 weeks.

    Important Dates for Part-Year Workers

    Tax Year Dates

    • Tax year runs: 6 April to 5 April
    • 2026/27 tax year: 6 April 2026 to 5 April 2027
    • P45 issued when you leave a job
    • P60 issued by 31 May after tax year end

    Claiming Refunds

    • P50 form: claim after leaving if not working again
    • P53 form: for students/temporary workers
    • Self Assessment deadline: 31 January
    • HMRC may auto-refund via tax code adjustment

    Part-Year Tax Calculation Examples

    Example 1: Starting a New Job in October

    Sarah starts a new job on 1st October with an annual salary of £36,000. She works 6 months (October to March) in the 2026/27 tax year.

    DescriptionAmount
    Annual salary equivalent£36,000
    Months worked6 months
    Actual earnings (6/12 × £36,000)£18,000
    Personal allowance£12,570
    Taxable income£5,430
    Income tax (20% basic rate)£1,086
    National Insurance (monthly, non-cumulative)£937
    Net income for 6 months£15,977
    Effective tax rate11.2%

    With cumulative tax code, Sarah gets her full personal allowance despite only working 6 months. Her effective tax rate is much lower than someone earning £36,000 for the full year.

    Example 2: Leaving Job Due to Redundancy in September

    James was made redundant on 30th September after earning £30,000 annually. He doesn't work for the rest of the tax year and claims a tax refund.

    DescriptionAmount
    Annual salary equivalent£30,000
    Months worked (April - September)6 months
    Actual earnings (6/12 × £30,000)£15,000
    Tax paid during employment (PAYE to September)£1,743
    Correct tax on £15,000 annual income£486
    Tax refund due if no further income£1,257
    NI paid (non-refundable)£697

    James has only used half of his annual personal allowance by September through PAYE. If he does not work again in the tax year, the full annual allowance applies when HMRC reconciles the year, so he can claim a refund. National Insurance is not refunded because it is calculated separately for each pay period.

    Example 3: Career Break with Return to Work

    Emma took a 4-month career break. She earned £45,000 salary at Job A (April-August, 5 months) and £40,000 at Job B (January-March, 3 months).

    DescriptionJob AJob BTotal
    Months worked538
    Earnings£18,750£10,000£28,750
    Personal allowance£12,570
    Taxable income£16,180
    Total income tax due£3,236
    Total NI due£1,630
    Net income for year£23,884

    Emma gave her P45 from Job A to Job B, ensuring her personal allowance was correctly allocated. The calculator above models one salary period at a time, so for two-job years like this, run each job period separately for NI and combine the annual income tax position across both jobs.

    Tax Code Types for Part-Year Workers

    Understanding your tax code is essential for part-year workers to avoid overpaying tax.

    Tax CodeTypeHow It WorksBest For
    1257LCumulativeSpreads £12,570 allowance across the year. Adjusts based on earnings to date.Workers with P45 from previous employer
    1257L W1Week 1 (Emergency)Only gives 1/52 of allowance per week. No cumulative calculation.Temporary code - should be corrected
    1257L M1Month 1 (Emergency)Only gives 1/12 of allowance per month. No cumulative calculation.New starters without P45
    BRBasic RateAll earnings taxed at 20%. No personal allowance applied.Second jobs where allowance is used elsewhere
    0TNo AllowanceAll earnings taxed with no personal allowance. Used when allowance exhausted.High earners or those with benefits

    8 Tips to Maximize Your Tax Refund

    1

    Keep Your P45

    Always keep parts 2 and 3 of your P45 when you leave a job. Give them to your new employer or use them to claim a refund via form P50.

    2

    Check Your Tax Code

    Review your payslip each month. If you see W1 or M1 next to your tax code, contact HMRC to get it corrected to a cumulative code.

    3

    Claim Early with P50

    Don't wait until the end of the tax year. If you've stopped working permanently, submit form P50 to claim a refund within weeks.

    4

    Use Your Personal Tax Account

    Register for a HMRC Personal Tax Account online. You can check your tax position, view employment records, and sometimes claim refunds directly.

    5

    Claim Work Expenses

    Don't forget to claim tax relief on professional subscriptions, uniforms, and tools. This can increase your refund or reduce tax due.

    6

    Review P800 Calculations

    HMRC sends P800 tax calculations after the tax year ends. Check it carefully - if you disagree, you have 60 days to appeal.

    7

    Consider Pension Contributions

    If you have some earnings, consider making pension contributions to reduce taxable income and potentially get more refund.

    8

    Claim for Previous Years

    You can claim tax refunds for up to 4 previous tax years. Check old P60s and P45s to see if you're owed money from past years.

    5 Common Mistakes Part-Year Workers Make

    1. Throwing Away Your P45

    Your P45 is essential for correct tax calculation at a new job and for claiming refunds. Keep it safe - you can't get a replacement from your old employer.

    2. Not Checking Emergency Tax Codes

    Many workers don't notice they're on emergency tax (W1/M1) until they've overpaid for months. Check your payslip each month and query any code ending in W1 or M1.

    3. Assuming HMRC Will Automatically Refund

    While HMRC does reconcile at year-end, refunds during the tax year require you to claim via P50 or Personal Tax Account. Don't wait if you need the money.

    4. Forgetting About National Insurance

    Unlike income tax, National Insurance cannot be refunded just because you worked part-year. It's calculated on each pay period separately with no annual reconciliation.

    5. Missing the 4-Year Claim Deadline

    You can only claim tax refunds for the last 4 tax years. If you think you overpaid years ago, check and claim before the deadline passes.

    Part-Year Employment Scenarios Guide

    Starting Your First Job

    If this is your first job, you won't have a P45. Your employer will ask you to complete a starter checklist (previously P46). Choose statement A if you have no other income, which gives you your full personal allowance.

    You may initially be put on an emergency tax code, but HMRC should correct this within 2-3 months. If not, contact them directly.

    Returning from Long-Term Illness

    If you received Statutory Sick Pay (SSP) or Employment and Support Allowance (ESA), these may have used some of your personal allowance. When returning to work, check your tax code reflects your current situation.

    Your new employer should receive a P45 from your previous employer or benefits agency. If you're returning to the same employer, they should continue using your existing cumulative tax code.

    Graduates Entering the Workforce

    Starting your first job after university in September means you'll only work about 6 months of the tax year. Your full £12,570 personal allowance still applies to your annual earnings.

    Student loan repayments begin in April after you graduate and only apply when you earn above the threshold (currently £29,385/year for Plan 2). If you start mid-year, check your payslip to ensure repayments are correct.

    Returning from Overseas

    If you've been working abroad and return to the UK mid-year, you may be able to claim split-year treatment. This means you're only taxed as UK resident from your return date.

    You'll likely need to file a Self Assessment tax return to claim split-year treatment. Bring records of your overseas income and any foreign tax paid for potential double taxation relief.

    Essential HMRC Forms for Part-Year Workers

    Form P45

    Issued by your employer when you leave. Shows earnings and tax paid to date. Essential for new employment or refund claims.

    Form P50

    Claim a tax refund if you've stopped working and won't work again this tax year. Submit with parts 2 and 3 of your P45.

    Form P53

    For students or temporary workers to claim back tax after a short period of employment. Similar to P50 but for specific situations.

    Form P60

    Annual summary issued by 31 May showing total earnings and tax paid for the tax year. Keep for 4 years for potential refund claims.

    Form P87

    Claim tax relief on employment expenses up to £2,500 without filing a full Self Assessment return.

    Starter Checklist

    Complete when starting a new job without a P45. Replaced the old P46 form. Tells your employer which tax code to use.

    Frequently Asked Questions

    How is tax calculated if I only work part of the year?+
    PAYE operates on a cumulative basis, so tax is calculated on your actual earnings to date (not projected annual salary). Your tax-free allowance of £12,570 is spread across the year (£1,047.50 per month). If you work 6 months, you get £6,285 tax-free allowance for that period.
    Will I get a tax refund if I leave my job mid-year?+
    Possibly. If you don't work again in the tax year (April-April), you may have overpaid tax because PAYE assumes you'll work the full year. Submit a P50 form to HMRC after leaving to claim a refund. If you start a new job, give them your P45 so tax is calculated correctly.
    What is a P45 and why is it important?+
    A P45 shows your earnings and tax paid to date when you leave a job. Give it to your new employer so they can tax you correctly from day one. Without a P45, your new employer will use an emergency tax code (often 1257L W1/M1) which might overtax you initially.
    I started my job in October - why am I paying so much tax?+
    Your employer likely used an emergency tax code (Week 1/Month 1 basis) which doesn't give you cumulative tax-free allowance. Request a tax code from HMRC or update your employment details in your Personal Tax Account. Once the correct code is applied, you should get a refund.
    Can I claim my full £12,570 allowance if I only work 3 months?+
    Yes, over the full tax year. If you only work 3 months, your final tax is based on your total income for the whole tax year, not the salary you would have earned over 12 months. If PAYE deducted too much while you were working, you can claim a refund through HMRC or wait for the year-end reconciliation.
    Do I still pay National Insurance if I work part of the year?+
    Yes, if you earn above the monthly NI threshold (£1,047.50 per month for employees). NI is calculated on actual monthly earnings, not projected annual earnings. If you earn £2,000 in one month, you'll pay NI on earnings above £1,047.50 that month.
    I had a career break - how do I calculate my tax?+
    Add up all earnings from all jobs in the tax year (April to April). Your tax-free allowance of £12,570 applies to total annual earnings regardless of employment gaps. If multiple jobs overlapped or you had gaps, check each P45/P60 and add them together for your total tax position.
    What if I work in the UK for only part of the tax year?+
    If you're non-resident for part of the year, you may be able to split the tax year and only pay UK tax on UK earnings during your UK residence period. This requires claiming split-year treatment. Most part-year workers remain UK resident for the full tax year and pay tax on worldwide income.
    How do I claim a tax refund during the tax year?+
    If you've stopped working and won't work again this tax year, complete form P50 and send it to HMRC with parts 2 and 3 of your P45. HMRC will calculate any refund due based on your total earnings and tax paid. Refunds typically arrive within 2-3 weeks. You can also claim through your Personal Tax Account online.
    What happens to my pension contributions if I work part year?+
    Pension contributions are typically calculated as a percentage of your actual earnings during employment. If you have a workplace pension with auto-enrolment, contributions only apply while you're employed. Tax relief on pension contributions is based on your actual earnings, not projected annual salary.
    How does maternity or paternity leave affect my tax calculation?+
    Statutory Maternity Pay (SMP) and Statutory Paternity Pay (SPP) are taxable income, but the amounts are usually lower than your normal salary. This means you may end up with unused personal allowance and could be due a refund. Keep track of all payments on your payslips and P60.
    I have multiple jobs in the same tax year - how is tax calculated?+
    Each employer operates PAYE independently. Your personal allowance is usually allocated to your main job (tax code 1257L), while second jobs use code BR (basic rate on all earnings). If you stop one job mid-year, give your P45 to your other employer to get your full allowance.
    What is split-year treatment for people arriving or leaving the UK?+
    Split-year treatment allows you to be treated as UK resident for only part of the tax year. You'll pay UK tax on worldwide income only for the UK-resident period. This applies when you arrive to live in the UK or leave permanently. You must meet specific conditions and may need to file a Self Assessment return.
    Can I claim tax relief on expenses if I only worked part of the year?+
    Yes, you can claim tax relief on allowable expenses for the period you worked. This includes professional subscriptions, uniform cleaning costs, and working from home allowances. The relief applies to the period of employment, not the full tax year. Claim via form P87 or Self Assessment.
    How do student loan repayments work for part-year employment?+
    Student loan repayments are calculated on actual monthly earnings, not annual salary. Repayments only apply in pay periods where you earn above the relevant plan threshold. For Plan 2, £29,385 per year is about £2,449 per month or £565 per week. If you don't work for several months, you won't make any repayments during that period.
    What should I do if I think I've overpaid tax but haven't received a refund?+
    After the tax year ends (5 April), HMRC automatically reconciles most PAYE records and issues P800 calculations by October. If you haven't received a P800 or think it's wrong, you can contact HMRC, use your Personal Tax Account to check your tax position, or file a Self Assessment return to reclaim overpaid tax.

    Related Tax Calculators

    Starting or leaving work mid-year affects PAYE, NI and student loan deductions. use the income tax calculator for a full-year comparison, use the National Insurance calculator for contribution checks and use the student loan repayment calculator for loan deductions in the year.

    Income Tax
    Calculate PAYE take-home pay
    National Insurance
    Employee & employer NI contributions
    Student Loan
    Plan 1, 2, 4 & postgraduate