My tax code - question

bk2006 · 24 July 2010 at 11:50PM

Hello.

Got my first payslip today - woop me! anyway I do not earn enough to get taxed and I was expecting an emergency tax code at the top of my payslip however it reads BR Non Cumul. Never had a job before nothing.

My question is simply - Is this the emergency tax code and If so what happens?

If not, what should one do!?

New to all this so any help would be GREAT!

PS. My national insurance also reads 0.00? I thought everybody had to pay that.

molerat · 25 July 2010 at 12:13AM

NI is only paid on earnings above £110 per week £476 per month.

Your tax code should normally be 647L which gives you a tax free allowance of £124 per week £540 per month. You have been taxed at 20% on all your earnings. Speak to your payroll to ask why they have used BR and then contact your tax office to get the correct code sent to your employer.

bk2006 · 25 July 2010 at 12:51AM

molerat wrote: »

NI is only paid on earnings above £110 per week £476 per month.

Your tax code should normally be 647L which gives you a tax free allowance of £124 per week £540 per month. You have been taxed at 20% on all your earnings. Speak to your payroll to ask why they have used BR and then contact your tax office to get the correct code sent to your employer.

right okay

I certainly am in the tax free allowance of £124 per week £540 per month.

My next questions are:

QUESTION 1

- I read online about filling in a P46 as I have not had a job before etc . Now I have not received this from my employer (despite online saying I should have) before my first pay day which was (Friday) Should I have to fill this in? and if so would I put an X in the box next to option A see here: hmrc.gov.uk/forms/p46 DOT PDF (sorry new, not allowed to post links)

Once I give this back to my employer and they fill in their section will this correct my tax code?

QUESTION 2

The tax they have taken on this payslip ...will I get it back? if so do the tax office automatically do this once my code changes?

Really appreciate the help - not a clue!

dzug1 · 25 July 2010 at 11:19AM

Q1 - yes you should fill the form in. Box A looks right from what you have said.

Q2 - eventually yes. Your employer should put you on the right tax code but with a month 1 restriction from the first payday after they receive the form - that means you will pay no more tax. Once the tax office lift the month 1 restriction you will get the tax you have paid back as well

chrisbur · 25 July 2010 at 2:55PM

If you are able to sign Box A then your employer can use the emergency tax code (647L) on a cumulative basis, this will allow them to refund any overpaid tax right away.

Speak to your payroll dept about this, they may be doing their P46s online so may not have a P46 for you to sign just ask you for the details.

Horseunderwater · 25 July 2010 at 3:34PM

bk2006 wrote: »

Hello.

Got my first payslip today - woop me! anyway I do not earn enough to get taxed and I was expecting an emergency tax code at the top of my payslip however it reads BR Non Cumul. Never had a job before nothing.

My question is simply - Is this the emergency tax code and If so what happens?

If not, what should one do!?

New to all this so any help would be GREAT!

PS. My national insurance also reads 0.00? I thought everybody had to pay that.

Hi
Congrats on the first ever payslip.
BR code means that on everything you earned in that week or month is taxed at 20% flat rate. Normally most employers will do this for at least the first 2 weeks or so. You need to fill out form P46 and sign it and give it back to your wages clerk so that they can send it to the tax office to obtain your proper tax code, which will be 647L for this year and 747L next year. This may well take some time to completely sort out as I have heard that there are significant delays in dealing with some stuff in the revenue. Meanwhile, if you do not know your Nat insurance number and have not been sent one for some reason, you can use the following forumula on the form: TN dd/mm/yy/A - you write your date of birth in that format on the form. What this does is locate the record you would have been allocated at birth by the DSS and can be used short term until the correct one arrives from the DSS (DWP?) now.
Also your wages clerk, will be able to alter your tax code to emmergency code month/week 1 which should look like 647L X - so that you will get tax deducted from the coding booklets at the starting rate each week or month. However you will see some extra money come back into your wage packet/slip when that happens and you may well get another adjustment once your correct tax code arrives via form P2. Both you and your employer should get one of these.
That is how it works. I should know as I worked there for 6 years. The procedure will not have changed, but it is all on computer these days, so in theory should be faster. In my day it was all done by hand! So you can imagine the chaos.
Hope this helps you to understand some of the basics.
Frances.

Mary_Hartnell · 25 July 2010 at 4:19PM

Your new job might just qualify for additional tax relief, if for example you have to wash a uniform at home.

http://www.hmrc.gov.uk/manuals/eimanual/EIM32712.htm

dzug1 · 25 July 2010 at 4:39PM

Mary_Hartnell wrote: »

Your new job might just qualify for additional tax relief, if for example you have to wash a uniform at home.

http://www.hmrc.gov.uk/manuals/eimanual/EIM32712.htm

But alas no help if earnings are too small to pay tax in the first polace

chrisbur · 25 July 2010 at 5:26PM

Horseunderwater wrote: »

Hi
Congrats on the first ever payslip.
BR code means that on everything you earned in that week or month is taxed at 20% flat rate. Normally most employers will do this for at least the first 2 weeks or so. You need to fill out form P46 and sign it and give it back to your wages clerk so that they can send it to the tax office to obtain your proper tax code, which will be 647L for this year and 747L next year. This may well take some time to completely sort out as I have heard that there are significant delays in dealing with some stuff in the revenue. Meanwhile, if you do not know your Nat insurance number and have not been sent one for some reason, you can use the following forumula on the form: TN dd/mm/yy/A - you write your date of birth in that format on the form. What this does is locate the record you would have been allocated at birth by the DSS and can be used short term until the correct one arrives from the DSS (DWP?) now.
Also your wages clerk, will be able to alter your tax code to emmergency code month/week 1 which should look like 647L X - so that you will get tax deducted from the coding booklets at the starting rate each week or month. However you will see some extra money come back into your wage packet/slip when that happens and you may well get another adjustment once your correct tax code arrives via form P2. Both you and your employer should get one of these.
That is how it works. I should know as I worked there for 6 years. The procedure will not have changed, but it is all on computer these days, so in theory should be faster. In my day it was all done by hand! So you can imagine the chaos.
Hope this helps you to understand some of the basics.
Frances.

Temporary NI numbers should not be used these days, from the E13 Day to Day Payroll guide ....
"Use the correct National Insurance number
HM Revenue & Customs will no longer accept ‘temporary’ NI numbers, for example TN220157M for a male born on 22 January 1957. This applies no matter which method you use to submit your forms and returns (for example paper, online) so in all cases you should try to obtain the correct NI number "

As advised previously provided that section A of the P46 can be signed then the employer can use 647L on a cumulative basis and any overpayment of tax can be rebated in the next payment made to the employee. From the E13 ...

On the form P46

Tax code to use