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    • Poetry
    • By Poetry 19th Jan 13, 9:33 AM
    • 20 Posts
    • 15 Thanks
    Poetry
    • #2
    • 19th Jan 13, 9:33 AM
    • #2
    • 19th Jan 13, 9:33 AM
    It just means he hasn't gotten any allowances as they don't know his employment history e.g. if he had a second job and they put him on a full code he could end up underpaying. Did he fill in a P46 when he started work? My brother tried to phone HMRC when this happened to him but his job wasn't even on their system at the time so they couldn't do anything. He got in touch with the companys payroll and they sorted it all out for him, he got the tax back in his next pay.
    • jem16
    • By jem16 19th Jan 13, 9:58 AM
    • 18,135 Posts
    • 10,718 Thanks
    jem16
    • #3
    • 19th Jan 13, 9:58 AM
    • #3
    • 19th Jan 13, 9:58 AM
    Is this correct?
    Thanks
    Originally posted by mumsonline
    It is correct if he has not handed in a P45 (unlikely if its his very first wage) or completed a P46.

    Basically he should have been given a P46 to complete by his employer.
  • nomunnofun
    • #4
    • 19th Jan 13, 12:36 PM
    • #4
    • 19th Jan 13, 12:36 PM
    If he did not hand in a P45, code BR on a week 1 basis is appropriate, not 0T. BR taxes everything at 20%, even if earnings are £50k. 0T (zero T) will tax at 20% up to the basic rate band and apply higher rates thereafter.
    • McKneff
    • By McKneff 19th Jan 13, 1:02 PM
    • 34,121 Posts
    • 43,751 Thanks
    McKneff
    • #5
    • 19th Jan 13, 1:02 PM
    • #5
    • 19th Jan 13, 1:02 PM
    Once his tax code is sorted he will receive a refund through the payroll.

    To clarify also.

    Tax allowance over the year is £8105. This is spread out over the year.

    So divide £8105 by 52 and any money earned over the figure you get then he will pay 20% tax on.

    If this is his first job, he may not pay tax at all until April because he may not have used up all his allowance.

    NI is also payable at 12% if he is earning over a certain amount.

    Tell him not to worry, he will get it back as soon as his tax code is sorted.
    No one can make you feel inferior without your consent
  • mumsonline
    • #6
    • 19th Jan 13, 2:06 PM
    • #6
    • 19th Jan 13, 2:06 PM
    Thanks for the replies!

    He hasn't filled in any P45/46 forms so we I'll just wait for it to sort itself out.
    Unfortunately 16 year olds don't have much patience when it comes to money.
    • McKneff
    • By McKneff 19th Jan 13, 2:42 PM
    • 34,121 Posts
    • 43,751 Thanks
    McKneff
    • #7
    • 19th Jan 13, 2:42 PM
    • #7
    • 19th Jan 13, 2:42 PM
    You could download a P46 and he could give his employer it when he next goes into work.

    Or he could ask his employer for a p46 to fill in when he goes to work.

    Don't wait for it to sort itself out. He will end up paying tax till April and then end up having to reclaim the whole lot directly through HMRC.

    Much easier to sort it now and its a good life lesson for him.
    No one can make you feel inferior without your consent
    • McKneff
    • By McKneff 19th Jan 13, 2:43 PM
    • 34,121 Posts
    • 43,751 Thanks
    McKneff
    • #8
    • 19th Jan 13, 2:43 PM
    • #8
    • 19th Jan 13, 2:43 PM
    show him this thread, he will at least know how the tax system is set up.
    No one can make you feel inferior without your consent
    • chrisbur
    • By chrisbur 19th Jan 13, 3:37 PM
    • 2,505 Posts
    • 1,363 Thanks
    chrisbur
    • #9
    • 19th Jan 13, 3:37 PM
    • #9
    • 19th Jan 13, 3:37 PM
    If he did not hand in a P45, code BR on a week 1 basis is appropriate, not 0T. BR taxes everything at 20%, even if earnings are £50k. 0T (zero T) will tax at 20% up to the basic rate band and apply higher rates thereafter.
    Originally posted by nomunnofun
    The tax code OT non-cumulative is the tax code employers are now required to use if no P45 is handed in and the employee declines to complete a P46, it was changed start of this tax year or last forget which. This code reduces the likelyhood of a high earner being undertaxed which can happen with a BR code.
  • nomunnofun
    The tax code OT non-cumulative is the tax code employers are now required to use if no P45 is handed in and the employee declines to complete a P46, it was changed start of this tax year or last forget which. This code reduces the likelyhood of a high earner being undertaxed which can happen with a BR code.
    Originally posted by chrisbur

    Thank you - I was not aware of this change.
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