BR Tax code help pls!

jig

Hi

I started a new job June last year. I have been on the tax code of BR. I earn more then £36k so therefore should be in the 40% bracket.

Have I paid to much or too little tax? What do I do next?

Thanks in advance

Jig

martind511

You will probably have paid too little tax - even with the tax free amount you are entitled too (depending on exactly how much you earnt) - best to contact HMRC and sort it out - this happened to me for three years and I am paying them back monthly although I am fighting with them about paying back interest - hopefully you should be able to get HMRC to collect this money back through your tax code.

Hope this helps.

CLAPTON

if your salary is only 36,000 you have paid too much tax ... (40% tax only starts over 40,000)

why are you paying BR... did you give your new employer your P45... if so speak to the payroll department, if not then did you fill in a p46?

jig

i did not give my new work anything?! I earn more the 36,000 so I fear I am paying/have paid less tax.

Can I keep quiet, or is it best to resolve as these things always have a way of coming back and biting you?

dmg24

No point in keeping quiet, this will catch up with you.

How much do you earn?

SKIPPY

I was under the impression that BR was Basic Rate tax, therefore you would not be receiving any allowances and paying tax on every single penny you earnt. The normal tax code for people is 543L meaning you are able to earn 5,430 before paying tax. Can't see why you should still be on a BR tax code over a year on. It is not a second job is it?

System

Many employers put new employees on a BR code when they first start working for them. However they should have given you a P46 form to complete which they would have sent to HMRC so that they could have gotten your tax code sorted out.
Providing you didn't have a second job and HMRC were so informed you should by now be on a 543L code which means your personal tax free allowance would be available to you. Since you are still on a BR code you are effectively missing out on that tax free amount.

Also to be liable for tax at 40% your income would need to be £34800 above that allowances ie- £5435 + £34800 = £40235 or above.

To claim any refund of tax due to you for the 2007/2008 tax year you need to submit your P60 to your tax office. Any overpayment of tax accrued since April 2008 would be paid back via your salary once your tax code has been corrected.

jig

Pam17 wrote: »

Many employers put new employees on a BR code when they first start working for them. However they should have given you a P46 form to complete which they would have sent to HMRC so that they could have gotten your tax code sorted out.
Providing you didn't have a second job and HMRC were so informed you should by now be on a 543L code which means your personal tax free allowance would be available to you. Since you are still on a BR code you are effectively missing out on that tax free amount.

Also to be liable for tax at 40% your income would need to be £34800 above that allowances ie- £5435 + £34800 = £40235 or above.

To claim any refund of tax due to you for the 2007/2008 tax year you need to submit your P60 to your tax office. Any overpayment of tax accrued since April 2008 would be paid back via your salary once your tax code has been corrected.

Thanks. So have I missed out on some cash or do I owe so cash? my salary is £55k.

Do I just fill out a p60, is there anything else I need to do?

How do I get of the BR code and onto a normal code?

jem16

jig wrote: »

Thanks. So have I missed out on some cash or do I owe so cash? my salary is £55k.

No way to tell without figures. However as you are getting no tax-free allowance chances are that you have paid too much tax.

Do I just fill out a p60, is there anything else I need to do?

A P60 is what your employer gives you at the end of a tax year to show your earnings and tax deducted. What you need is a P46 - ask your employer for one or download it from HMRC site.

How do I get of the BR code and onto a normal code?

As above.