Tax help!

leggie_2

hey all,

Right, I've never had a paying job until now so you're gonna have to bear with me!

Ok, so I was due to begin my graduate job this month, but have been deferred until December. This isn't all such bad news as I am due a 'goodwill' compensation payment of my first months pay in advance.

In light of this deferment, I have been temping recently and work only when required (this will not last as I am only required for another week) -I'm on tax code 647L

I've earned £560 to date, and tax this year is £50 - (July - gross £60 - paid no tax, August - gross £500 - paid £50 tax)

Ok, so I've now recieved my first payment (2 weeks pay) from my grad job mentioned earlier, Gross £777 and I've paid £155 tax on it on Tax code BR.

Having browsed about I've gathered that this tax code is used for those with 2 jobs. Technically I'm not working at my grad job yet and wont be until December and this is a one-off payment...I was just wondering whether there is anything I can do about this as it seems I've been taxed on the full amount.

As I say, I'm only due to temp one week further so I'm not really 'raking in the dough' as such surely to be taxed so much?

Also, with regards to my temp job, will I be able to claim the tax I have paid so far as I am under the monthly threshold? Or will I have to wait until April to work out my yearly income (at which point I will have started my grad job) before thinking about a claiming anything back?

thanks for any help!

fengirl_2

As you only have one more week left in your temp job, its too late to do anything about your tax code for that job.
The only way to get the tax on your new job refunded is to get yourself on 647L cumulative (you are on a week 1 basis at the moment) and give them the P45 from the temp job. Once they run you through the payroll, this will refund the tax on the temp job and the tax on the advance payment.
You will need to contact the tax office which deals with your new job once you have left the temp job and explain the situtation and ask them to issue a cumulative code to the new employer.
There is no guarantee your new employer will run you through the payroll until you start with them, but you can only ask.

Ray_Arman

Ensure that when you start your grad job that you give your new employer your form P45 from the temp job so that they can continue with appropriate tax deduction and tax free allowance. You can check your total tax paid at the end of tax year.. If then you see that you have paid more income tax, contact your tax office and get a refund.

fengirl_2

Sorry, I dont agree with ray's advice to reclaim your tax at the end of the year - it is not Moneysaving to let the government keep your money all that time!
Sort out your code as son as you can after you leave this temp job. If you wait until the end of the year, you will be in a long queue with thousands of others in the same boat.

leggie_2

Thanks so much for your help! I'll give the tax office a bell when I leave this job. Is it as simple as just ringing up the tax office and explaining the situation as I have on here + asking them to change my code, then repeating with my grad job and then everything will fall nicely into place when I receive my next pay with the grad job with the tax being refunded?

Ray_Arman

From what I understood, code 647L was already being applied to the temp job which will therefore be shown on the Form P45. This form P45, when given to the grad employer should be used to deduct the appropriate tax rather than code BR. Hopefully, then the graduate job will adjust for the tax you have already paid at code BR.
If however, the grad job does not apply code 647L cumulatively then you will have to contact HMRC.

fengirl_2

No, the OP is on emergency code - see his first post. This is why I have given the advice which I have.

Seanymph

Ray is right. Your allowance is being used by job a, giving job b no option but to tax you on an emergency basis because they don't have a code provided to them.

As soon as you hand them your P45 they will update to be able to use your tax allowance and also input your previous figures - which will mean that the first payment they make after that date will refund the additional tax taken.

fengirl_2

Sorry, I dont agree with Sean, you have again misunderstood the infor given by the OP. The OP is on emergency code with the temp agency and therefore the P45 from them will also show E code. This is why the OP needs to contact the tax office to get himself on the right code with the new employer so they can refund his tax!
Please read the quesitons!

Seanymph

I have been temping recently and work only when required (this will not last as I am only required for another week) -I'm on tax code 647L

Fact 1. The temping agency is using the tax allowance to calculate their tax deductions.

Ok, so I've now recieved my first payment (2 weeks pay) from my grad job mentioned earlier, Gross £777 and I've paid £155 tax on it on Tax code BR.

Fact 2 - the graduation job has now started a payment, but as the OP is STILL temping (for one more week) they have no P45 and are therefore being taxed on an emergency code.

Obviously the OP needs to come back and clarify. But two of us read it the same way.

Temp job has code 647 - no P45 issued because haven't yet left - new job made a payment and therefore had to tax on emergency.

Perhaps the OP can clarify? It makes no sense at all for the initial job to be on BR and the NEW job to already have a tax code in place. It makes far more sense for it to be the other way around.

leggie_2

Seanymph wrote: »

I have been temping recently and work only when required (this will not last as I am only required for another week) -I'm on tax code 647L

Fact 1. The temping agency is using the tax allowance to calculate their tax deductions.

Ok, so I've now recieved my first payment (2 weeks pay) from my grad job mentioned earlier, Gross £777 and I've paid £155 tax on it on Tax code BR.

Fact 2 - the graduation job has now started a payment, but as the OP is STILL temping (for one more week) they have no P45 and are therefore being taxed on an emergency code.

Temp job has code 647 - no P45 issued because haven't yet left - new job made a payment and therefore had to tax on emergency.

All of the above is correct, apologies for any confusion fengirl!

I am currently working at the temp job with code 647L

I have not worked a day at my grad job yet and only received this advance pay after I had already been tempting so I assume this is why it is on BR

Since I am still temping I have not received any P45 just yet to pass onto my grad firm.