Taxable earnings question

HollaHolla84

Hi there I think this should be the best place for this....anyway...

I was made redundant on the 20th of September and I returned to work on the 5th of January, Basically I got my first pay today and there has been no tax deductions. Obviously before my pay split my 6k approx tax free amount for every week ( I earned roughly 11k from April) Am I likely to get a few tax free weeks then get stung for a silly amount of money or will it just return to my old levels once its caught up? Help me please because I don't want to spend money if in a few weeks I'm going to be getting a crap wage because the tax man caught up with me.

ceeforcat

If your tax code is not week 1/ month 1 and you have handed in your form P45 your assumption of 'a few tax free weeks' is probably correct. Eventually you will start to 'return to your old levels' as you say. The reason is that you have yet to make use of your personal allowances for the months of October, November and December.

Impossible to say otherwise without more information.

chrisbur

Did you have any taxable earnings or benefits, eg jobseekers allowance, between these two jobs?

HollaHolla84

Hi there yes I was claiming benefits for around a month.

chrisbur

As you are not paying tax I assume you handed in a P45 with a cumulative code to your new employer. Was this P45 from the benefit office, if so you should be taxed correctly, if however the P45 was from your old employer then your tax at the moment will not be correct.

HollaHolla84

chrisbur wrote: »

As you are not paying tax I assume you handed in a P45 with a cumulative code to your new employer. Was this P45 from the benefit office, if so you should be taxed correctly, if however the P45 was from your old employer then your tax at the moment will not be correct.

Hi yes its the P45 from my old employer which are also my new employer. Will the tax sort it self out or am I likely to get a letter through in a few months demanding x amount of money from unpaid taxes?

chrisbur

You should have given the P45 to the benefit office and they would then have given you a new one to use when you started work again. As it is you are at the moment being taxed as if you had not received any taxable benefit while off work. When this will be adjusted I don't know, if the extra income is added before the end of this tax year it will cause a jump in your tax that week/month or it is possible the tax office may adjust for it in next year's code.

HollaHolla84

chrisbur wrote: »

You should have given the P45 to the benefit office and they would then have given you a new one to use when you started work again. As it is you are at the moment being taxed as if you had not received any taxable benefit while off work. When this will be adjusted I don't know, if the extra income is added before the end of this tax year it will cause a jump in your tax that week/month or it is possible the tax office may adjust for it in next year's code.

Ok thanks for that, I did hand in my p45 to the job centre but they gave me most of it back and they never sent me a new one. Ok I'll get in touch with them and see what they say. Thanks for your help.

chrisbur

That is strange, the only part of a P45 that should be returned to an employee is part 1A if that is handed in with parts 2 and 3. Part 1A is the employee's copy which they should keep for their records. This part should never be accepted by an employer as a P45.

HollaHolla84

chrisbur wrote: »

That is strange, the only part of a P45 that should be returned to an employee is part 1A if that is handed in with parts 2 and 3. Part 1A is the employee's copy which they should keep for their records. This part should never be accepted by an employer as a P45.

I definatly sent the part of the P45 which said "for your new employer" and I'm certain the job centre took part of it off me. Guess I'll ring them tomorrow and see what they say.