PAYE Tax Query - Please Help!

the_fonz

Hi there, I have a question regarding my tax. Basically I was a student until May last year, although I graduated in July. I had a part time job for the first year or two of my four year course, though I packed it in :S.

Anyway, I was in receipt of Jobseekers Allowance for two months or so after graduation, after a holiday of a few months. I then worked for my previous employer for a month October to November, where I was on code BR, due to not having a p45 or completing a p46.

At my current employer I filled in a p46 and was on code 603 L, non cumulative. I am now on 603 L cumulative and have had a letter through from HMRC saying this is my code for 6 April 2008 to 5 April 2009.

My paycheck for this month appears to have had no tax deducted, and the month before I received more money as well.

To cut a long story short, can anyone tell me why this is, and am I on the correct code???!!!

Any help from anyone more enlightened is appreciated, many thanks in advance.:beer:

Mikeyorks

603L is the basic tax code for 08-09 (Personal Allowance {PA} £6035) .... so that appears correct.

As we're 10 months through the tax year the 10/12th proportion of your PA amounts to £5029. So you're allowed to earn that since 6.4.08 before paying any tax at all. Which may explain why no tax deducted thus far?

Suspect

and the month before I received more money as well.

- that was possibly a refund of the amount deducted under BR? As HMRC - from the P46 - will have advised your new employer what start up details to use from the start of your employment with them.

More precise figures - would get a more precise answer?

anniecave

how much did you receive in job seekers allowance? (not sure if this is taxable or not)
how much did you earn at your october - november job?
If these amounts plus the amount you have earned so far in your current job is less than 6035 in total then it's all correct - because you only pay tax on earnings above 6035 in any tax year. So you get the benefit of not having worked for a few months before you start to pay any tax

From the next tax year you will get taxed each month (I assume you are earning over £500 per month)

anniecave

oh yes sorry realised you paid tax previously - so you should have had a tax refund - have you had this?
You probably are best to check your total earnings and tax paid at end of tax year - check it's all worked out correctly!

the_fonz

Excellent, thank you both for your help. I have had more sense from both of your posts than from speaking to HMRC over the phone, who were useless!!!!

All understood now, have a nice weekend! Thanks again.