Emergency Tax??

Zezu

Hi guys...bit confused, have contacted my works finance dept but while I wait.

I began a new job in Dec08...and have handed in my P45 and my P46.

But this month i've been taxed almost a third of my wage...my tax code is 592L.

Am I being emergency taxed?

dtaylor84

Emergency tax code for 2008-09 is 603L. http://www.hmrc.gov.uk/incometax/emergency-code.htm

Bit confused why you handed in both a P45 and P46 -- the P46 is for employees without a P45.

592L essentially means "they" think you are a basic rate tax payer with an unused personal tax free allowance of 592 * 10 / 12 = £493/month.

Assuming I've got it right, you should be taxed 20% of (wage - £493). Then add NI, pension contributions and student loan deductions, etc.

To work out if your tax code is right you'd really need to know what allowance you are entitled to, then (should be on the P45) how much you've earned and how much tax you've paid.

Zezu

I handed in a P46 as part of my intro pack to the business...while I was waiting for my P45 to come through from my previous work.

CLAPTON

The normal tax code is 603L (without anything like M1 Wk1 after) so if yours is 592L then although its not an emergency code it is not standard either.

Usual reaons for codes like that are... benefits in kind (health insurance etc) or if you owe tax from previous year.

When you say taxed .. do you mean tax or total deductions (tax, NI, pension, student loan etc.)
If you want to post up all the details I'm sure people could check it for you.

chrisbur

Can you advise the details that appear at items 6, 7, and 8 on your P45. Also gross, tax, and tax code with basis and week or month number from all payments made in your new employment.
A common cause of this sort of thing is that payments from your old employer and your new employer overlap and so you get allowed extra tax free allowance. When your P45 is put on by your new employer this is corrected and extra tax is taken to adjust. If you can give the above details I can tell if this has happened.

cally6008

Sorry to jump on your thread but its about a similar problem.

I started working end of Sept 2008. I gave them my P45. We are paid monthly at the end of the month. My tax code is stated as "BR" with a note on the bottom of my payslip saying "Timesheet weeks blah blah, Tax office Ref No bla h blah, call Tax office with your NI number".

I called them middle of November and was informed letter would be sent to me with my tax code on (which is 603L) and that letter would be sent to my works payroll department as well.

My boss called Payroll last monday to be told that they hadnt received any letters with my tax code on from the tax office. I rang the Tax office on tuesday and a letter was sent out to me and got here by friday.

My boss says that faxing the letter (that I got) to Payroll isn't good enough for Payroll to accept and that I should phone Payroll myself on tues/wed time to see if they have this second letter thats been sent to them.

I'm getting rather peeved off with this all now. Its taken till this month (4 months) to get my basic pay and additional hours paid at the correct rate due to a "glitch" with my account on the payroll system.