Change of Tax code

icevaner

Hi, earlier on the year I worked for 3 months and was taxed under code 601L...I was only getting the equivalent of 14k a year...I have been on benefits until Nov and they now want to tax me on the BR code. I would be taxed 100 quid a mnth more than normal.

I have read this code is applied if you have a pension or have two jobs. However, my new job which is 16k a year is my only job, I have never enrolled in a pension scheme with another company and haven't done so with my new employer.

I have read if you don't complete a P46 and P45 when starting a job you might be changed to BR as well. My new employer has not given me a P46 and the JobCentre haven't sent me my P45.

What can be going on and...would it be correct?

fengirl_2

First you need to chase the Job Centre for your P45. Meanwhile ask your employer for a form P46 - or you can download one from www.hmrc.gov.uk. This will at least make sure you are on emergency code. If the JC doesn't cme up with your P45 by the beginning of Jan, contact your tax office (employer will give you the number) and ask them to issue a proper code to your employer who will refund any tax overpaid. Code 601L is incorrect - they should issue code 647L.

icevaner

fengirl wrote: »

First you need to chase the Job Centre for your P45. Meanwhile ask your employer for a form P46 - or you can download one from www.hmrc.gov.uk. This will at least make sure you are on emergency code. If the JC doesn't cme up with your P45 by the beginning of Jan, contact your tax office (employer will give you the number) and ask them to issue a proper code to your employer who will refund any tax overpaid. Code 601L is incorrect - they should issue code 647L.

I was something ending in "L" so I must have got the number wrong.

icevaner

So far not a lot of good news in regards to this and things are kinda stuck. My employer has given me a P46 to fill in. HMRC say they need me to hand in a P45 for my benefits but the JobCentre is insisting they do not issue P45s for IS claims.

trevormax

A few things you should note.

1. IS is a non taxable benefit according to HMRC website here http://www.hmrc.gov.uk/manuals/eimanual/eim76190.htm This might explain why JC dont want to issue you with a P45 for the IS.

2. I am not sure if this is a recent thing but instead of HMRC classing taxable benefits (such as JSA) as income, they now deduct it from your tax code. E.g. you are on JSA from start of the tax year and you get £1,000 JSA. Then you start work in say September. HMRC issue a reduced tax code of 547T (or L) which is the standard tax free amount of 6,475 less the £1,000 JSA. Your new employer sticks you onto a cumulative tax code 547T with total amount earned as £0 whereas before it would have been code 647L with total amount earned £1,000. I think this is why HMRC might be reluctant to issue a tax code until they know how much taxable benefits you have had (if any).

I think when you came off of IS, the JC should have sent you a letter to confirm how much taxable benefit you have received in the tax year which you could then send on to HMRC (in your case £0 if it is all IS). Give the JC a call and ask them for this letter explaining the problems you are having with HMRC because of a lack of evidence of total taxable benefits received.

Since you have filled in the P46, you should hopefully be put onto an emergency tax code which is better than being on BR. However this means you will not get the benefit of all of the unused tax free allowance from April to today (£4,856 if it is applied in January) until you are put onto a cumulative tax code or the end of the tax year when you can claim any overpaid tax back as a rebate.

icevaner

Just found out that the problem is with the P45 of my JSA claim. This year I had another job but it finished on the start of April so the financial year was changing by then. Since then i've been on IS and on JSA until the 11th of August. I don't have a P45 for the JSA period. They did advise one was sent so there is no copies for that either.

I wondered from here how can the tax code be ammended and the overpayment claimed. (i.e.: if there is any way through the no P45 issue) - HMRC did mention to me something that tor that they can take the data electronically however I don't really know what they mean by that.

suso

Phone the job centre and ask them for the taxable benefit received in this tax year. They will either confirm it in writing or tell you over the phone (I suspect they might have to confirm it in writing.)

When you have the figure, phone your tax office and they will accept the figure over the phone and issue a cummulative code, once your employer uses it, it will calculate all your tax allowances since April and refund any overpayment of tax through your wages.