First income this tax year. Am I paying correct tax?

chrisbur

marcofoo wrote: »

My P45 would have been created in March 2009.

As the P45 was from last tax year then you would be put onto this year's emergency tax on a non-cumulative basis. As I said before you now have to wait for the tax office to issue a cumulative code before your tax is adjusted.
It might be worth having a word with your payroll dept to see if they would let you complete a P46 on which you select option A (from what you have said this seems to apply to you) which will let them use the current emergency tax on a cumulative basis and would result in you getting your tax back in the next payroll done after this was applied. They may not be prepared to do this as you handed in the P45, but worth a try.

Your present circumstances
Read all the following statements carefully and enter 'X'
in the one box that applies to you.
A – This is my first job since last 6 April and
I have not been receiving taxable Jobseeker's
Allowance or taxable Incapacity Benefit
or a state or occupational pension.
OR
B – This is now my only job, but since last 6 April
I have had another job, or have received
taxable Jobseeker's Allowance or Incapacity
Benefit. I do not receive a state or
occupational pension.
OR
C – I have another job or receive a state or
occupational pension.

A

fengirl_2

Why can't the OP just do what I said in the first place and ask the tax office to issue a code? Its obvious the P45 was going to be out of date. Only HMRC can now issue a cumulative code with nil previous pay and tax.

marcofoo

fengirl wrote: »

Why can't the OP just do what I said in the first place and ask the tax office to issue a code? Its obvious the P45 was going to be out of date. Only HMRC can now issue a cumulative code with nil previous pay and tax.

It appears as though this was the solution. :beer:

Mudd14

fengirl wrote: »

Why can't the OP just do what I said in the first place and ask the tax office to issue a code? Its obvious the P45 was going to be out of date. Only HMRC can now issue a cumulative code with nil previous pay and tax.

Not one to argue but is this correct? If he fills out a P46 stating its his first and only job since April he will be put on a cumulative code?

I would suggest speaking or emailing payroll and informing them you wish to alter you P46 from statement B to A as it is your first and only job this tax year. They can legally take this notification via email.

computershack

marcofoo wrote: »

It is my understanding that I should begin paying tax after I have earned £6475. So why have I paid £175 in tax this month? If incorrect, what should I do?

Thanks.

It is correct and it is your understanding of how its deducted that isn't. It is deducted at every pay packet so that the tax free amount is spread out over every wage packet throughout the year otherwise you'd get to 3 months into the year and then get a sudden 20% wage cut for the remaining 9 months.