Tearing my hair out!!!

coffeeandfags

Which part of " i am in employment" do the tax office not understand??? :mad:

I have been paying a W1 code since June last year, and after numerous phone calls, filling in not one, but two P46s, sending in my P45 from my old second job as requested by the tax office ........ i get a letter this morning telling me what next years tax code will be IF I RESUME EMPLOYMENT

Dont know what to do next. They owe me about £400 in overpaid tax, and it should be simple, paid back through my wages, but they dont seem to be willing to accept that im in employment!

Help...where do i go next???

fengirl_2

I think your employer has failed to inform HMRC that you work for them - or the notification has been lost in the post.
Two choices - get your employer to ring the tax office, or ring them again and explain. If you could ask your emplyer for their tax reference, this will help HMRC to transfer your records.

coffeeandfags

jimmo wrote: »

Have another coffee and have another fag. If necessary, have another fag.
When you are calm enough try to identify which tax office deals with your current employment and the correct reference. That is the reference to use when you try again.
Also, can you identify which tax office and reference number dealt with your former second job? If that is the office which has told you what your code number will be if you resume employment and the code is BR, that is right if you resume a second employment.
So, the letter could make sense in the right context.
However, you do not need to argue about what might happen. You really need to speak to the office which deals with your current employment.
That’s the best sense I can make of what you have posted but if that doesn’t help then have another fag, coffee is optional and then try to explain here what your circumstances are in a bit more detail.

Ok, had a fag, had a coffee

Right, long story short is, at the beginning of this tax year i had 2 employers ..... Employer A i had code 543L, Employer B i paid BR.
I left Emplyer A and continued to work for Empolyer B. I filled in a P46 for Employer B coz they said it would be the easiest way to get my tax code changed from BR to 543L (yeahh, right :cool: ). However, it resulted in me being put on a W1 code instead.

TBH, i hadnt even noticed til i didnt get the £60 rebate in September.

The tax office (both employers used the same office BTW) told me to fill in another P46 and it would be sorted from there ....... this was nearly 3 months ago. Gave them a month or so, then phoned again and was told to send in the P45 from Employer A (the job i left) and it would be sorted from there ...... 2 months on and im still on W1. *insert coffee and fag break*

Then today received my tax code for 2009-2010 (647L which takes into account washing uniform backdated for 3 years) and informs me that this will be my code when i RESUME emplyment!!!

Dont know where to go from here, but what i DO know is they owe me money!!!

coffeeandfags

jimmo wrote: »

OK. My practical knowledge is a rather dated but I think that the use of the additional P46s has achieved all it can achieve and you need an alternative way forward. Just to explain briefly it would require your pay and tax from employment A to be added to Employer Bs records for you as previous pay and tax. However Employer B’s records for you for this year already start at week 1 or month 1 and there is no room to insert the previous pay and tax details. The explanation is a bit clumsy but I hope you get the drift.
In my days, and I see no reason why it can’t be done now, the correct procedure would be to balance the personal allowances used at employment A to the tax paid at employment A and then set the balance against Employment B.
As an example, if you earned £1,500 at employment A and paid £200 tax, then £200 tax represents £1000 of income which has been taxed at 20%. So you have actually used £500 of your personal allowance at employment A.
Employment A then balances as
Earnings £1500
Personal allowance £500
Chargeable to Tax £1000 @ 20%.
Ignoring the issue of washing of uniform your correct code number for this year should normally be 603L giving £6035 free of tax but you have already used £500 allowances at employment A.
Therefore your code at employment at employment B should now be:
Personal allowance £6035
Less used elsewhere £500
Available here £5535
Code number 553L.
If you can adjust those figures to match your circumstances then you will know exactly what code number you want to be operated against employment B and hopefully be able to convince the tax office that you know what you are talking about.
If in doubt post your P45 details here and someone can work it out for you.
I trust this still works but if I am out of date no doubt someone who knows better will let us know soon enough.

Ok,

Employer A ......... From April til July, my tax code was 543L, total pay for the time period was £1748. Zero tax paid

Employer B ...... from April til 2nd July, Tax code BR, total pay was £829.30, tax paid £165.80

Employer B ..... from 9th July til present, Tax code 603L W1, total pay (inclusive of earnings above at BR rate i guess) £4909, tax paid £347.20

HOWEVER, i was issued a new tax code after applying for the uniform expenses........that code being 624L ....... this code has NEVER been applied.

By my own calculations, at this point in the tax year, i should just about be breaking even on my personal allowances and only starting to pay tax at around this stage.
Would be really grateful if someone could check it for me though

coffeeandfags

jimmo wrote: »

As none of the more up to date people have shot me down in flames that increases my confidence that I am on the right track.
In job A no tax was paid and you have therefore used up £1748 of your personal allowance in that job.
The code number you now want for job B is calculated as:
Laundry Expenses £210 *
Personal allowance 6035
Total allowances 6245
Less allocated to job A 1748
= 4497
Code 449L

* Laundry expenses of £210 for a single year seems an awful lot but if it represents 3 years worth it is probably about right. However if you are getting 3 years worth this year you should only get 1 year’s worth next year.
So. That is what you want to achieve i.e. code 449L (cumulative) operated against employment B for this year.
The letter telling you what your code number will be next year “if you resume employment” sounds as if it has come from the records for employment A and that is still recorded as your main tax reference. Employment B is still regarded as a secondary source of income. In the language of my days Employment A is your GCD and Employment B is a sub source. Older, or more experienced, taxmen will certainly recognise “GCD” and sub source but maybe there are new names for them now.
Anyway, you do need to persuade them that Employment B should now be your GCD and that needs to be done to achieve stability but, for the time being, it is more important that you convince the tax office to issue code 449L (cumulative) to employment B as a matter of priority.
You probably need another fag and a coffee right now but if this makes sense you should try to speak to them again in the morning. Hopefully, with some insight into the taxman’s world, you will be able to convince them but you may well still need to be fairly close to your fag packet.

SO, all that said, was i right in saying that i should only be starting to pay tax on that 449L tax code now given the figures i told you?

I shall phone them tomorrow and tell them i spoke to my personal accountant

Seriously though, if they dont sort this out by April, will sending in the P60s give me the desired result? Or am i gonna be paying W1 forever? :eek:

coffeeandfags

*whole packet of fags consumed* ......... yeah you read that right "consumed" not smoked :eek:

This IS making a bit of sense to me, believe it or not , but can i clarify, on the calculation directly above ^^ , remember that £829 of that income has already been taxed at BR........... does this make it worse? :eek: Coz now that means ive only paid £181.40 on the W1 code for for employer B!