Claiming Tax Back

Adam_W_2

Hi all Money saving experts!

Just a quick one, for which i have searched and havent found an appropriate solution.

I have just started a new job and received my 1st pay slip for the role, and as expected i have been charged too much tax. Although it is inline with the salary, because I have not been working up untill the start of dec (previously a university student) i will not earn enough this financial year up untill April 2009 to pay tax. The amount i earn falls just below the 6030 threshold i believe.

So, although i am going to be taxed for the next few months at the current rate, which i think is correct for the salary, how do i go about claiming back the tax at the end of the financial year?

Will the tax office contact me to let me know (I think unlikely) or do i need to send in a letter explaining this and hope the repayment is made quickly!

If it is the latter, is there anywhere that outlines a template letter to send? I tried a search on the site, as i found the bank charges letters really useful, but could not find a thing,

All help would be much appreciated

Adam W

MrsE_2

Wait till April & drop them a line saying that above.

Its really simple

Adam_W_2

MrsE thanks for the reply. Who is best to contact, or is it a case of sending a letter to the head office and hoping it is passed on to the appropriate department?

MrsE_2

Adam_W wrote: »

MrsE thanks for the reply. Who is best to contact, or is it a case of sending a letter to the head office and hoping it is passed on to the appropriate department?

Whichever tax office deals with you.

Your payroll dept will tell you.

CLAPTON

Did you have a P45 to give to your employer?

If not did you fill in a P46 when you started?

What is your tax code? It will be on your payslip

There is no need to wait until the financial year end, your tax code should be corrected to 603L soon and so the tax should be refunded.
If its not correted by Jan salary phone phone the HMRC and explain the situation.
You need to establish which tax office deal with your company.. it might be on the payslip, or your payroll people will be able to help you.

MrsE_2

CLAPTON wrote: »

Did you have a P45 to give to your employer?

If not did you fill in a P46 when you started?

What is your tax code? It will be on your payslip

There is no need to wait until the financial year end, your tax code should be corrected to 603L soon and so the tax should be refunded.
If its not correted by Jan salary phone phone the HMRC and explain the situation.
You need to establish which tax office deal with your company.. it might be on the payslip, or your payroll people will be able to help you.

Yes but he will still over pay tax as his tax allowance is divided out over 12 months & if hes only earning for 3/4 months then he will pay more tax than he should have.

Adam_W_2

Tax code according to pay slip is 603L. I understand this is the emergency code and so i will continue paying the tax until April, where i will need to contact the tax office to get a refund (unless the do it automatically).

I didnt have a P45 but i did fill in a P46 at the beginning of employment. I will look into which tax office deals with my employer and will contact them.

Thanks!

CLAPTON

what does it say after the 603L something like Wk1 or M1?

CLAPTON

MrsE wrote: »

Yes but he will still over pay tax as his tax allowance is divided out over 12 months & if hes only earning for 3/4 months then he will pay more tax than he should have.

If he is on the correct code i.e. 603L cumulative then it works like this:
each month he can earn 6035/12 = £502 before any tax after that he is taxed at 20%.

However the tax free amount is cumulative so if he earns nothing before December he then has a tax free allowance of 502 x 9 (months ) = £4526 which is offset against his salary
So unless he earned more than 4526 in december then he shouldn't pay any tax.

However he is probably on a 603L M1 code which isn't cumulative.
Once the tax code is changed he will automatically receive his tax back without any claim. (assuming before april that is).

Adam_W_2

Hi Clapton.

The full tax code is 603L M1. So this isn't cumulative?

What is the best solution then? As im not sure what my correct tax code is, do i need to contact the tax office?

There is nothing on the pay slip to identify the tax office, so i will have to speak to my employer.

MrsE_2

M1 means you are being taxed on a month 1 basis. NOT cumulative.

As you filled in a P46 the tax office will sort it.

However don't rely on the tax office sorting it all out quickly, write that note to them in April.

I had some messing about last year with my job change, but I kept on top of them & made them sort it pronto.+