Tax Office - Advice needed please

Stitch_3

My husband changed jobs in October 2008 and notified HMRC. He went back to his previous employer 3 months later on the same terms and conditions, again he notified HMRC.

However, despite monthly phone calls, 8 months later HMRC have still got him on the emergency tax code.

What happens when he finally gets his proper tax code? Will HMRC demand it as a lump sum? Do we have any redress as he has been keeping them informed every step of the way and chasing every month?

Any help / advice would be gratefully received.

System

When your husband changed his job in October his new employer should have used the details from his P45 Parts 2 and 3 so keeping him on a cumulative tax code. Similarly when he went back to his original employer he should have given them the new P45 Parts 2 and 3 and they would have continued to operate a cumulative code.

That's the way the system is supposed to work but obviously hasn't in your husbands case. That being the case I would advise your husband to write to HMRC (send it recorded delivery) and give them a full employment history from 6th April 2008 to the present day and enclose with the letter copies of the 2 P45 Part 1A he should have from when he changed his job twice.

Since he has been at the same employer from the beginning of this tax year (6/4/09) he should be on a 647L tax code. If he has been on a 647L W1/M1 code he should not owe anything for 09/10. If he has been on a BR code and assuming he is not a 40% taxpayer he should be due a refund via his employer. When HMRC get his letter they will review 08/09 re a possible refund too.

fengirl_2

He can't possibly be on emergency code this tax year if he has been with the same employer all year as the employer knows his total pay for the year.

Stitch_3

Thank you both for your replies. My husband IS still on an emergency tax code, so he obviously needs to sit down and write to HMRC ASAP. I gather that his present employer is still awaiting a coding notice from HMRC too.

jem16

Stitch wrote: »

Thank you both for your replies. My husband IS still on an emergency tax code,

What code does your husband have?

Stitch_3

jem16 wrote: »

What code does your husband have?

Not sure, it's a touchy subject! I know itsn't the 647L code as he has a company car. It is an emergency code. I will have to delve a little more, possibly tomorrow when he isn't tired! MEN!

I have just asked and he has raised his eyebrows and muttered something about a K code - like I say, I'll press for more information in the morning!

chrisbur

Stitch wrote: »

Not sure, it's a touchy subject! I know itsn't the 647L code as he has a company car. It is an emergency code. I will have to delve a little more, possibly tomorrow when he isn't tired! MEN!

I have just asked and he has raised his eyebrows and muttered something about a K code - like I say, I'll press for more information in the morning!

A K code is not an emergency code. What makes you think that the code he is on at the moment is not the correct code? Can you advise details on his current notice of coding?

jem16

Stitch wrote: »

I have just asked and he has raised his eyebrows and muttered something about a K code - like I say, I'll press for more information in the morning!

As chrisbur says, a K code is not an emergency code. A K code happens when your total allowances are less than your total deductions.

http://www.hmrc.gov.uk/incometax/codes-basics.htm

Stitch_3

Thanks for all your replies. I have now taken a look at his tax code and looked at the HMRC website. I now understand the coding.

Funny, DH has just got out all correspondance and has re-read it properly!!!!!!

I will stop worrying now and get him to calm down too!