Will I be able to claim this tax back?

ohara09

Hi,
I'm a bit confused at the moment, have phoned up my local tax office, but it's not really making sense at the moment.

Up until 11th Dec I was working full time for an employer. My final pay in December was quite chunky due to outstanding holiday etc etc, and as a results, I was taxed a lot. Then in January, I had another pay from this company, as a pay adjustment from when they had underpaid me. This went through on emergency tax.

I am now working part time (about £60pw) in my local, which is on PAYE so will be taxed and NI. On this basis, by 1st April, I will have paid much more tax than I should have, and know I would be eligiable to claim back some tax - nice and simple.

HOWEVER! Since 12th January, I have also been working full time on a self-employed basis (which I've registered for with the local tax office, NI etc). Now, I know I won't have to pay tax on this until I do a tax assessment in the nexy financial year.

My question is, which I've not been able to get to the bottom of on the helplines, is will I be able to claim the tax I've paid whilst on payroll in 2008/09?

Many thanks to anyone can help with my befuddled mind!
ohara09

fengirl_2

I hope that the final payment you had from your last employer was taxed at basic rate rather than emergency code.
You need to hand the P45 from your last employer to your present employer. They will use your proper code number and previous pay and tax in order to calculate the refund due to you. You will get small refunds in your pay each week until 6 April, by which time you will have paid the correct amount of tax on your employment income. You dont need to claim this - your employer will do it automatically.

chrisbur

If you hand in your P45 to your new employer your tax should be correct and if any adjustment is due it will be in your wages.
Without knowing the exact figures or dates of employment it is impossible to tell if a rebate is due.
You say that your late payment in January was taxed as emergency tax, if this payment was made after your P45 was issued it should have been taxed at basic rate ie 20% tax deducted from it.

ohara09

Thanks chrisbur and fengirl, I really appreciate your replies - and I think I'm starting to understand.

chrisbur - it was after my P45 was issues and at a higher rate, so I assumed it was emergency tax? It was tax code BR / 1 (I'm usually L).

I'm still owed about £300 by my previous employers. I guess this will also be taxed at the basic rate?

So I should just sit tight and hopefully I should see an adjustment in my PT role and not be taxed as much, and I might get a rabate at the end of it (depending on numbers of course), and my self employed wage won't be taken into account for this year?

Thanks

fengirl_2

If you will earn more than 6035 this tax year, then the basic rate tax deducted by your previous employer from additonal payments will be correct. Yes, you will get refunds each week through your pay until the correct tax is paid by 5/4/09.
Your self employed profit for the year can only be ascertained once you have been trading for a year and your accounts are done. Any profit relating to the 08-09 tax year will be chargeable at 20% assuming your pay from employments exceeds 6035.

ohara09

perfect, thank you