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Basic Rate Tax

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I have just gone back to work on 16th July, and filled in a P46 before I started. I have been given a tax code of BR, which means I am paying 20% of my earnings each week. I expect to earn approx 7100 pounds this tax year. So I think I will overpay by about 1200-1300pounds(please correct me if I'm wrong).

As I am on a low income I am a little concerned about the reduction in my weekly income. Can anyone tell me what I should do? I knew it might take a while to sort out my tax, but can this be sorted out quickly, or will I have to wait till the end of the year to claim it back?

Sorry I am a bit clueless.:o

Comments

  • roger_c
    roger_c Posts: 320 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    You should call your tax office to explain, it may just take them a while to process the P46.

    HMRC contact details can be found on this site:

    http://search3.openobjects.com/kbroker/hmrc/locator/locator.jsp?type=1

    All you need to find your tax office is the 3-digit tax office code, this will be shown on your payslip under 'PAYE reference'. Hope that helps.
  • If you ticked box A or B on the P46, then you shouldn't have code BR.

    Go back to your employer and ask them what they are playing at.
  • trevormax
    trevormax Posts: 947 Forumite
    Part of the Furniture 500 Posts Name Dropper
    edited 9 August 2009 at 2:08PM
    If you ticked box A or B on the P46, then you shouldn't have code BR.

    Go back to your employer and ask them what they are playing at.

    Agreed, they should have put you on an emergency code such as 647L W1/M1 (at least until they sort out your cumulative tax code)
  • karent_2
    karent_2 Posts: 141 Forumite
    Part of the Furniture Combo Breaker
    Thanks for all the info everyone. I will check with employer first, then call tax office. I got a letter from HMRC with the tax code, so at least I have phone number!
  • Any
    Any Posts: 7,959 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    karent wrote: »
    Thanks for all the info everyone. I will check with employer first, then call tax office. I got a letter from HMRC with the tax code, so at least I have phone number!

    You got a tax code from HMRC? And the letter said BR? Which statement did you tick on your P46?

    Do you have any other source of income? (like pension or something?)
  • karent_2
    karent_2 Posts: 141 Forumite
    Part of the Furniture Combo Breaker
    I have no other income and ticked A on the p46. I am beginning to think the form hasn't been submitted. It's an agency job and my contact at the agency has had 3 weeks leave starting the day after I signed the paperwork. Wonder if it's in her desk!!!!

    I assumed all was ok because the first part week and the first full week, no tax was taken, just NI, then the 2nd full week I lost 20% of everything I earned previously! Got home and found PAYE Coding Notice from HMRC.

    I'll call her tomorrow, assuming she is back.

    Thanks
  • chrisbur
    chrisbur Posts: 4,251 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    karent wrote: »
    I have no other income and ticked A on the p46. I am beginning to think the form hasn't been submitted. It's an agency job and my contact at the agency has had 3 weeks leave starting the day after I signed the paperwork. Wonder if it's in her desk!!!!

    I assumed all was ok because the first part week and the first full week, no tax was taken, just NI, then the 2nd full week I lost 20% of everything I earned previously! Got home and found PAYE Coding Notice from HMRC.

    I'll call her tomorrow, assuming she is back.

    Thanks

    Having no tax deducted from your first two payments and getting a coding notice suggests that the P46 was used. For some reason the tax office then issued a BR cumulative code, which I assume is the code on your notice of coding. This notice of coding should show how this code has been arrived at, if it is wrong you will need to contact the tax office,
  • karent_2
    karent_2 Posts: 141 Forumite
    Part of the Furniture Combo Breaker
    My Coding Notice says
    " Your main HMRC office has worked out your tax code for your other employments or pensions but we both need you to check that our info about you is correct."

    Didn't make much sense to me before, but it appears they think I have another job or pension on which I am using my allowance? Not sure where that comes from though. I haven't worked since Feb 2004. I wasn't in the country from then till August last year. Been getting child tax credits based on zero taxable income since shortly after that!

    Will have to phone the tax office, but I am not sure which my main one is. This is from E Cheshire and S Lancs, and it appears from the letter that this is the tax office dealing with my new job through Rullion. I guess I will start with them and if need be I will ask them who my main one is

    Thanks again. At least the problem is now more clear. Now to solve it.
  • karent_2
    karent_2 Posts: 141 Forumite
    Part of the Furniture Combo Breaker
    I called the tax office today. They thought this was a second job, as I suspected after all your input. The man on the phone said he would issue my new tax code, after asking roughly what I expected to earn p.a. He said any refund due would go direct into my pay. Hopefully the process won't take too long.

    Many Thanks again.
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