Emergency tax help please ?

shaneym

Hi there, was wondering if you can help me as Im not too clued up on this. I started a new job in April after not working for the previous 12 months. Since I started I have always been on emergency tax code 647L W1, and I have now been paying tax now for 3 months.

Someone has told me I am allowed to earn £6475 a year before I start paying tax, so my question is, am I eligible for a rebate on the tax I have paid the last 3 months ? Also, is it up to my employer to sort this or do I need to contact the tax office themselves. Lastly, how do I get put onto the correct tax code.

Thanks for any advise or help you can give, as I have tried to look online for help but it all seems very confusing.

Many thanks.

Meadows

You will get any tax back that you shouldn't have paid.

Did you give your new employer a P45?

You don't have to give it to them you can send it directly to the tax office.

Try contacting the tax office to see when you will be put on a normal tax code.


http://www.hmrc.gov.uk/incometax/emergency-code.htm

http://www.hmrc.gov.uk/incometax/emergency-code.htm#5

jem16

shaneym wrote: »

Hi there, was wondering if you can help me as Im not too clued up on this. I started a new job in April after not working for the previous 12 months. Since I started I have always been on emergency tax code 647L W1, and I have now been paying tax now for 3 months.

Did you start the job before or after April 6th?

Someone has told me I am allowed to earn £6475 a year before I start paying tax, so my question is, am I eligible for a rebate on the tax I have paid the last 3 months ?

You have a tax-free allowance of £6475 but it is split over the year and you get part of that allowance each month. It's not a case of paying no tax until you reach £6475 and then suddenly paying tax. Basically if you earn more than £539.58 each month you will pay tax.

Also, is it up to my employer to sort this or do I need to contact the tax office themselves. Lastly, how do I get put onto the correct tax code.

When you started work you should have either handed in a P45 from your previous employment or completed a P46.

McKneff

Your friend is partly right but the 647L (ie £6470) allowance is spread out on a weekly/monthly basis through out the year so if you divide your £6470 by 52 weeks you have an allowance of £124 per week that you do not pay tax on. Anything earned over that is taxable and will be for the rest of the tax year. So no, you are not due a tax rebate. All £s i have quoted are approximate.

fengirl_2

If you started work in April, you should not be on emergency code. Employers have instructions to put new employees on 647L cumulative if an employee starts near the beginning of the tax year. The tax office will not issue a code because they are assuming your employer is operating the correct code. You ned to contact yuor payrol dept. and point this out to them.

Pumpkinface_2

McKneff wrote: »

Your friend is partly right but the 647L (ie £6470) allowance is spread out on a weekly/monthly basis through out the year so if you divide your £6470 by 52 weeks you have an allowance of £124 per week that you do not pay tax on. Anything earned over that is taxable and will be for the rest of the tax year. So no, you are not due a tax rebate. All £s i have quoted are approximate.

It is only spread out in the administration of PAYE, but it is an annual allowance not a weekly allowance. If somebody only worked for six months or even 1 day they are entitled to the full £6,475 and it would be spread over the 26 weeks or could be used up in one day.

Thus if the OP didn't start work until October and were being taxed on week 1 basis they would almost certainly be overpaying tax. However as they started work near the beginning of the tax year it is unlikely that anything is due back. Nevertheless it would be a good idea to get a cumulative tax code.

Any

Pumpkinface wrote: »

It is only spread out in the administration of PAYE, but it is an annual allowance not a weekly allowance. If somebody only worked for six months or even 1 day they are entitled to the full £6,475 and it would be spread over the 26 weeks or could be used up in one day.

Thus if the OP didn't start work until October and were being taxed on week 1 basis they would almost certainly be overpaying tax.

Yes, but that is not that case is it? You are just picking on McKneff now. The OP stated APRIL on so McKneff gave reply based on April. And if someone is paid weekly then the allowance will be applied weekly.

As she started to work in April - which is the beginning of tax year I agree it doesn't matter whether she is on wk1/mth1 basis. Yes, it shouldn't have been done that way at all, but it is highly unlikely you overpaid tax.

If you completed P46 - employee without P45 or handed in P45 HMRC will send out the tax coding notice soon.

Any

fengirl wrote: »

If you started work in April, you should not be on emergency code. Employers have instructions to put new employees on 647L cumulative if an employee starts near the beginning of the tax year. The tax office will not issue a code because they are assuming your employer is operating the correct code. You ned to contact yuor payrol dept. and point this out to them.

They ask you which code are you using when you submit the P45 or P46... so they won't assume anything. They will know and correct it.

At least they always ask me when I complete it on-line.

Pumpkinface_2

Any wrote: »

You are just picking on McKneff now.

Why would I do that?



I was clarifying the statement that personal allowance is not divided by 52. I didn't not think it was clear that it was being said it was because it was April. I am just trying to be helpful.

Please don't try to pick arguments, I am really not.

Valli

shaneym wrote: »

Someone has told me I am allowed to earn £6475 a year before I start paying tax, so my question is, am I eligible for a rebate on the tax I have paid the last 3 months ? Also, is it up to my employer to sort this or do I need to contact the tax office themselves. Lastly, how do I get put onto the correct tax code.

Thanks for any advice or help you can give, as I have tried to look online for help but it all seems very confusing.

Many thanks.

Just to clarify this for you OP (although it has been mentioned) the first £6475 of your TOTAL ANNUAL EARNINGS are tax free (if your tax code is 647L). Over and above that you start paying tax...
but it's split over the year. If, at the end of the year you have overpaid tax (for instance if you stopped working after 4 months having earned an annual salary of £12K) then you would get a refund.

Incidentally your tax code isn't an emergency one if it's 647L!

Any

Pumpkinface wrote: »

Why would I do that?



I was clarifying the statement that personal allowance is not divided by 52. I didn't not think it was clear that it was being said it was because it was April. I am just trying to be helpful.

Please don't try to pick arguments, I am really not.

Fair enough