Tax and Carer's Allowance

claire23

Hope someone can help.

My Husband was receiving Carer's allowance for our daughter from April until Nov 2005. (£45.70 per week).

He started working for an agency in Nov and was taxed from the start
(His tax code was 489LX) - Is this right. With the amount received in Carer's allowance he wouldn't have earned his tax allowance for the year. He now has a full time job (started Jan) and is still on Wk1 (emergency) basis. He has filled in a P46 AND handed in his P45. What will happen to any tax he has paid, how is it worked out?

Thanks in advance.

Claire

CIS

If he has paid too much tax he can claim it back after the year end, write a letter or telephone your local tax office.

£489L is the standard tax code, so that sounds right.

When you start employment part way through the year, they don't look at what you've already earned, thats between you and HMRC.

The tax each month would be taken as 1/12th of the annual rate based on his salary, so if his total annual tax was £1200, they would take £100 per month.

claire23

Hi
Thanks for the quick reply. We were informed by the tax office that the X after the tax code (489L) implied emergency tax.

Will it be sorted when correct tax code entered into payroll system?

I recall that when I started a full time job in the november one year I didn't pay any tax until the new tax year (hadn't worked from April to Nov)
Just wondered if Carer's Allowance counted towards your Tax allowance.

CIS

I was wondering about the X, but the amount £4895 is the normal rate.

AFAIK the only way the overpayment wll be sorted is by a refund from HMRC after the year end.

Carers Allowance is counted as taxable income along with his income.