What is tax code 647L?

chelsey24

Hi there - firstly thank you so much for your helpful comments on understanding my 647L tax code. Hopefully you can clarify my question on tax refunds. :mad:

My husband and I have been working in the UK for only a few months (came here from New Zealand), and will be leaving at the end of the month. Up to the date we finish work, my husband will have earnt less than the 6475 tax-free allowance, although has been paying tax each month. After filling out a p85 etc. will this tax be returned to him since he has not earnt over the allowance?

Currently, I have earnt 5,864.10, of which 524.80 has been taken in tax. I expect my earnings to be 6989.10 by the time I leave. Obviously this is over the limit, so will I qualify for a refund up to the tax-free limit? Say, for 539?

Also, when filing for a refund, will they send it to an overseas address if I write it on the p85 form?

Thanks again for your help

Lokolo

Yes you can get a refund on tax you are due. If you are expected to have earn £6989.10 over a tax year you should have paid £102.82 in tax (remember, NI is not tax!). So anything over this can be refunded.

No idea about the overseas address.

John_Pierpoint

I've no idea about any tax treaty between UK & NZ.
I have a feeling that the mobile workers of the global economy can manage to earn the minimal tax free income in several countries.
However reclaiming seems to be quite an industry in the back pages of the travel mags. given away in London.

http://www.taxrebateservices.co.uk/overseas_visitors_tax_rebates.html

ishy222

Just a quick question....

My husband arrived in the uk earlier this year and has so far only been able to get employed with an agency doing temporary jobs here and there.... ( since june 4x night shifts and 3x day shifts )

His tax code on his P45 was listed as 647L and his first pay he wasnt taxed anything.... ( earned £152 )

However the last job he did he earned around £200 and was taxed + NI of more than £50.... he hasnt even earned more than £700 this year... and the agency are saying that the tax is correct....

Should my husband contact the local tax office for a refund or is this a fault with the employer ( agency ) ?

John_Pierpoint

National Insurance is a weekly tax, not a yearly tax, so it cannot be reclaimed.
You need to split out the "stoppages" into a figure for Income Tax and a figure for National Insurance.

ishy222

Im fully aware that NI can not be reclaimed, im asking about the tax

I said that the amount that was taken off was £50+ including national insurance

NI is about £12

Which still leaves about £40 which they took off in tax ( his pay should have been around £203 before NI + tax)

dzug1

Sounds like his tax code is not 647L but 647L M1 (or W1)

He needs to fill in a form P46 and hand it to the employer - they should really have given him one in the first place but you can download it

Once they've processed it correctly he'll get any refund due.

CLAPTON

ishy222 wrote: »

Im fully aware that NI can not be reclaimed, im asking about the tax

I said that the amount that was taken off was £50+ including national insurance

NI is about £12

Which still leaves about £40 which they took off in tax ( his pay should have been around £203 before NI + tax)

looks like tax code BR is being applied... what does his payslip say his tax code is?

ishy222

dzug1 wrote: »

Sounds like his tax code is not 647L but 647L M1 (or W1)

He needs to fill in a form P46 and hand it to the employer - they should really have given him one in the first place but you can download it

Once they've processed it correctly he'll get any refund due.

He filled in a P46 before he started the work... its all been for the same agency.

- so he needs to talk to the agency and make sure they have him on the correct tax code?

looks like tax code BR is being applied... what does his payslip say his tax code is?

His first pay slip said 647L ( and nothing was taken off - only NI ) and were waiting for the current one.

We got a P45 from the same agency last month, and the same on there 647L

nattywba

I have been working at a pub for a couple of months now and I'm on basic rate (BR) tax code, i'm being taxed on wages as little as £25 (for a 4 hour induction I had to do) I got about £16 for it, surely I shouldn't be paying income tax on an amount as little as that? I'm not sure. I've been told by a few people I'm on the wrong tax band. I mentioned it to work they basically told me to sort it myself, which is helpful. My tax code from my last job was 647L which from reading through this thread I've found is a personal allowance code. Do you think I should be on this? I'm really not sure!

I've just read above and I'm in a similer situation to the lady's husband. I'm having £40-60 in taxes (both income and NI) taken off my weekly wages of which there aren't a lot as it is!