Need help on Tax query!!

frasermurray

Hello

So my US wife recently transferred to the uk with her company. Her annual wage is 48000 per year but she only takes home 2400 per month. Her tax code is OT N. She only has one job.

Do you think this is right? I feel she is getting taxed too much. Is there anyway to change the tax code and apply for a refund?

Thanks.

jem16

No her tax code should not be 0T - this means she is receiving no tax-free personal allowance and will be paying tax on everything, some at 20% and some at 40%.

Not exactly sure if transferring over from the US would make any difference but normally she would have filled in a P46 when starting a job in the absence of a P45.

It's probably too late in the tax year to do anything about changing her tax code for this year - she should definitely apply to HMRC for a refund once she receives her P60 though.

As the new tax year starts on April 6th she should make sure she gets a normal tax code. I would advise finding out about the P46 route.

frasermurray

Ok so she should talk to her company about recieving a p46 then apply for a refund, will she get everything back for what she paid over?

One of my friends told me that she is going to pay UK tax on the remittance basis she gets no personal allowance so this may be the correct code...

Is this true?

Thanks

jem16

frasermurray wrote: »

Ok so she should talk to her company about recieving a p46 then apply for a refund, will she get everything back for what she paid over?

That depends on what you are saying below.

One of my friends told me that she is going to pay UK tax on the remittance basis she gets no personal allowance so this may be the correct code...

Is this true?

It could well be - I don't know enough about it.

http://www.hmrc.gov.uk/nonresidents/coming_to_the_uk.htm

fengirl_2

Yes, she needs to complete a P46, but whether or not this code is correct depends on her residence status. This can be determined by downloading form P86 from www.hmrc.gov.uk and sending it to her tax office.