P45s sent directly to tax office

moximc

I have three P45s for this tax year. I sent them directly to the tax office wih a letter explaining that I wanted them processed directly. Last week they came back with a letter saying, 'thank you for sending them, we are now sending them back'. Does that mean I've done everything I needed to do with them?

stoneystretton

Do you mind me asking why you sent them?

Mikeyorks

moximc wrote: »

I sent them directly to the tax office wih a letter explaining that I wanted them processed directly.

What does that mean?

You normally give the P45 to your new employer. And only via HMRC if you don't want the new employer to know about previous pay / tax. Or there is no new employer ..... and you're asking for a refund?

stoneystretton

Mikeyorks is right - if you think you have overpaid or underpaid tax then you have to complete forms. HMRC will have copies of your P45's in some shape or form, only problem may be if you have 3 different tax offices, as this can cause a delay in them reconciling your tax. Hopefully new computer system will sort this. Give us a bit more info ...

moximc

I sent the P45s direct as salary in my job varies, and I don't want my current employer knowing how much less I've worked for in the [recent] past. Just opening myself up for a pay cut, IMO. P45 part 2 has a note saying that you can sent forms direct to your tax office in this sort of case with a letter explaining and giving current employer details, which I did. I am definitely paying too much tax at the mo, and may have been overtaxed in other jobs the P45s refer to. My concern is, do I have to do anything else to get a tax rebate, now the tax office has seen the P45s. Sounds like I do, so let me know, and I'll get on to them tomorrow about form-filling.

cosyc

HMRC should issue employer with a P6. What ever hapens I think your employer will get to know the total of your previous pay either from your P45 or the notice the tax office sends to new employer P6 otherwise they can't work out your tax correctly. It is always done on previuos pay to date less previuos tax paid to date.

Say you earned £10000 and paid tax £800 up to december, then earn £1000 in january. if your employer knows your previus pay and pax details (from P45 or P6 notice) then he works out tax due on 10000 + 1000 = £11000 say that is £500 and you have already paod tax to date of £800 then he gives you a refund of £300.

So until he knows your previuos pay and tax you won't get a refund from new employer. hope this expalins it.

If you hand in P45 each time to new employer then when you leave next P45 is a total of everything you have earned and paid during the year. so if correct tax is paid at every job or a refund given automatically without involving HMRC.

System

If the P45's refer to the current tax year and there are no gaps in your employment then the P45's should allow HMRC to issue a cumulative tax code to your current employer and any overpaid tax would be refunded to you via your pay.

If there are gaps then HMRC would usually ask you to complete a P91 - http://www.hmrc.gov.uk/pdfs/p91_bs5_02.pdf before they would issue the cumulative tax code.


BTW it doesn't matter how many different tax offices deal with you any more. The new PAYE system was created to cope better with multiple employments and frequent job hopping and any tax office or contact centre will be able to deal with your affairs.

chrisbur

moximc wrote: »

I sent the P45s direct as salary in my job varies, and I don't want my current employer knowing how much less I've worked for in the [recent] past. Just opening myself up for a pay cut, IMO. P45 part 2 has a note saying that you can sent forms direct to your tax office in this sort of case with a letter explaining and giving current employer details, which I did. I am definitely paying too much tax at the mo, and may have been overtaxed in other jobs the P45s refer to. My concern is, do I have to do anything else to get a tax rebate, now the tax office has seen the P45s. Sounds like I do, so let me know, and I'll get on to them tomorrow about form-filling.

Under normal circumstances your new employer would have your tax code and details of your previous pay and tax. These details would either come from your P45 or the P6 that the tax office issues to them. To be taxed correctly your new employer has to have all these details. As you have requested that previous pay and tax are not disclosed then the tax office will have to issue a code to your new employer on a month 1 basis. You will then pay tax based on only what you earn each month with no adjustment for previous months.

Part 2 of the P45 where it tells you about sending it to them if you do not want your new employer to know your pay and tax details also warns that

"you may pay too much tax for a while as a result of this"

It may be that you will have to wait until the tax year end to claim for any overpayment from previous employment, you would need to speak to the tax office to confirm this.

You have not said what tax code you are on at the moment nor what your tax code should be, so it may be you will pay a lower rate of tax when the tax office issue your month 1 code but no adjustment will be made for the months before it is issued until after the tax year end.

moximc

Thank you everyone, it's very useful to hear all your comments. Chrisbur's advice about the tax office issuing a 'month one' code makes perfect sense and I now understand why the note on the P45 warns about paying too much tax if you send it direct to HMRC. I will get onto the tax office tomorrow about claiming for overpaid tax from this financial year, and hopefully things will be much more straightforward from now on!

Tarasam

The tax office is extremely busy this week, infact its the busiest week of the year, i'd wait till the week after if you can or be prepared to hold for a very long time.