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  • FIRST POST
    • oscart1111
    • By oscart1111 30th Nov 17, 3:57 PM
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    oscart1111
    Urgent p45 issue
    • #1
    • 30th Nov 17, 3:57 PM
    Urgent p45 issue 30th Nov 17 at 3:57 PM
    Hi everybody.

    I am just recently graduated from University in the summer so I have been working Part time to fund my job search. I have been offered a role at Santander pending successful reference/background checks. I have one URGENT issue, this being they require a P45 and contract letter or first and last payslips or bank statements.

    As a desperate student I was working at a chippy cash in hand part time on the weekend thus I did not meet minimum taxable income for the year. They did not register me on their books, even though they absolutely intended to. I provided them all of my details including NI etc, but having rung them today to provide me with a P45 they stated that they couldn't provide me with one for my crucial reference check because they had not put me on the books.

    Now I am in a predicament whereby I cannot provide a P45 to the Santander reference team, I understand I have done absolutely nothing wrong as I assumed I was on the books. But having only found out now (four months into this part-time work) that I am actually not on the books seems to be a genuine problem.

    Does anyone know how I can overcome this hurdle? I want to be honest with the referencing team but I am extremely worried that they will dismiss it and ultimately affect my chances of landing the job. I cannot provide payslips due to cash in hand payments, which I wasn't aware was actually illegal (I am still unsure as to whether it is if I am earning below the taxable income threshold). My employers have absolutely no problem writing a letter or confirming via phone to demonstrate that I have worked there but I am worried this won't be enough.

    Could someone please advise me on what to do? Long story short: On my CV I truthfully declared that I have worked there for four months as a part-time. Though I cannot obtain payslips or bank transfers as I have been paid cash in hand. Nor can I obtain a P45 as my employee also stated that as a 'casual worker' earning less than 113 a week I was not added to payroll and that any new employers can sort me out a temporary tax code when I start.

    Thank you in advance, sorry for waffling.
Page 1
    • Neil Jones
    • By Neil Jones 30th Nov 17, 6:21 PM
    • 1,011 Posts
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    Neil Jones
    • #2
    • 30th Nov 17, 6:21 PM
    • #2
    • 30th Nov 17, 6:21 PM
    If you don't have a P45 you'll typically need to fill out what used to be called a P46, now the Starter Checklist which looks like this and is usually given to you to fill out after your references/checks are done.
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/513621/Starter_checklist_v1.0.pdf

    If you don't have a P45 you don't have a P45, can't send what you don't have, its not the end of the world. Worry about it later, if the worse comes to the worse just say you've lost it/Royal Mail lost it/the dog ate it - you're not the first to change jobs without a P45 and you won't be the last. That's what the old P46 was for for a no P45 situation.
    • oscart1111
    • By oscart1111 30th Nov 17, 7:32 PM
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    oscart1111
    • #3
    • 30th Nov 17, 7:32 PM
    • #3
    • 30th Nov 17, 7:32 PM
    Many thanks for the reply! Sorry if this appears to be a silly question but is P45 solely for tax purposes only? It shouldn't impact majorly on any job offer I imagine? As this was asked for by the referencing team.
    • oscart1111
    • By oscart1111 30th Nov 17, 7:34 PM
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    oscart1111
    • #4
    • 30th Nov 17, 7:34 PM
    • #4
    • 30th Nov 17, 7:34 PM
    Also would the cash in hand be an issue at all? As it is under taxable income threshold too.
    • Neil Jones
    • By Neil Jones 30th Nov 17, 7:55 PM
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    Neil Jones
    • #5
    • 30th Nov 17, 7:55 PM
    • #5
    • 30th Nov 17, 7:55 PM
    All a P45 does is tell your new employer your tax code and how much you've been paid and how much tax you've paid in the current tax year.

    Without it all that usually happens in the short term is that you ultimately end up paying more tax out of your new pay packet, called the Emergency Tax code. In theory this could be as high as half your pay but in reality is more likely to be closer to 20% and this can last for a month or two. If you do end up overpaying tax this way at the end of the tax year you'll be entitled to the holy grail - a cheque from the taxman.
    • oscart1111
    • By oscart1111 30th Nov 17, 8:00 PM
    • 12 Posts
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    oscart1111
    • #6
    • 30th Nov 17, 8:00 PM
    • #6
    • 30th Nov 17, 8:00 PM
    Thank you, Neil. Your advice is much appreciated. But look I said I only earn £90 a week on PT pay here. As I am aware, this isnít taxable as it is part time and under the threshold. Would I still need to overpay any tax on my new job?
    • Dazed and confused
    • By Dazed and confused 30th Nov 17, 8:20 PM
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    Dazed and confused
    • #7
    • 30th Nov 17, 8:20 PM
    • #7
    • 30th Nov 17, 8:20 PM
    You are getting yourself confused. If you have a part time job the income will be taxable.

    It might not be enough for you to have to pay tax but it's still taxable and can't just be ignored because it's a small amount.

    You need to ask your new employer for a new starter form. Sign statement B and you will be put on what is known as the emergency tax code. This is actually the exact same tax code as most people have and means you can earn £958/month before being taxed.

    20% tax should only be deducted if you don't bother with the new starter form of your payroll office isn't very good.

    How much do you expect to earn in total from every job you have had, or are going to have, between 6 April 2017 and 5 April 2018?
    • oscart1111
    • By oscart1111 30th Nov 17, 8:40 PM
    • 12 Posts
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    oscart1111
    • #8
    • 30th Nov 17, 8:40 PM
    • #8
    • 30th Nov 17, 8:40 PM
    Thank you for your response, it is much appreciated. I was told by the current PT employer that as my income is part time and less than the threshold I don't need to worry about tax hence the cash in hand. Guess I have been lied to.

    Based on my current PT job (started in August) and my potential earnings from my new role (starting from January 2018) the amount will be approx £10,000 between April 2017 - 2018. What is the significance of this?
    • Neil Jones
    • By Neil Jones 30th Nov 17, 9:21 PM
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    Neil Jones
    • #9
    • 30th Nov 17, 9:21 PM
    • #9
    • 30th Nov 17, 9:21 PM
    £10k is below the personal threshold so it takes you out of Income Tax altogether. For National Insurance payments its not payable if your take home pay is less than I think £160 a week, otherwise its, again I think 12% of the amount over the lower figure. In the case of £10k a year that's about £192 a week so it will have to have NI deducted from it.
    • oscart1111
    • By oscart1111 30th Nov 17, 9:37 PM
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    oscart1111
    Yes, I understand for this tax year I will earn under the threshold for sure. But is there a way to prove this though when I start up my new job? to avoid being overtaxed? As for NI, I have no clue as to how that gets deducted.
    • Neil Jones
    • By Neil Jones 30th Nov 17, 11:20 PM
    • 1,011 Posts
    • 559 Thanks
    Neil Jones
    Yes, I understand for this tax year I will earn under the threshold for sure. But is there a way to prove this though when I start up my new job? to avoid being overtaxed? As for NI, I have no clue as to how that gets deducted.
    Originally posted by oscart1111

    One of the benefits of the PAYE scheme is you don't need to worry about the NI deductions, that's handled by the employer.

    Realistically the income thing comes down to what you say it is, you just don't have anything to to prove it. Your old employer should, if they tracked things properly, have documented the payments to you whether it came out of petty cash or wherever. In theory if you really needed those details the chippy should be able to provide them by going back through its records - they'd need to document all that anyway for either self assessment or Companies House reporting.

    Failing that then assuming you banked all you were paid that may work.
    • General Grant
    • By General Grant 1st Dec 17, 2:37 AM
    • 666 Posts
    • 776 Thanks
    General Grant
    If it is the referencing team who are asking, is it that they want to check the employment record?
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