Tax code question

Oskar_2

Hi there,

Sorry to start a new thread to ask about this, but I've been running round in circles all morning trying to figure out if I'm paying the right amount of tax.

I've just started doing some full-time temp work. I earn £10 an hour and work 35 hours each week. From £350 I'm having £70 taken as tax and £26.40 as NI contributions. From what I can tell it looks like my tax code is the basic rate, is this right? I'm not working any other jobs and I sent off a P45 to the payroll department with my tax code listed as 647L...

Thanks a lot, I'm very confused.

System

You have been put on a BR code which is not allowing you the full use of your tax free allowances and so you are currently paying too much tax. Assuming the p45 is from an employment you recently finished then once your payroll start using the information from your P45 they should put you on the correct 647L code.

[Deleted User]

If your P45 was old and out of date (earlier than April 10) You should request a P46 to complete to get you on the right code.

chrisbur

Deleted_User wrote: »

If your P45 was old and out of date (earlier than April 10) You should request a P46 to complete to get you on the right code.

However old the P45 is (pre April 6 would be an old one) the employer does not need a P46 and code BR should not be used. The E12 (2010) PAYE and NICs rates and limits for 2010–11
has full instructions what to do, details below.

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Employee’s P45 has a date of leaving between [/FONT][/FONT]

[FONT=ICCID I+ IR Modena,IR Modena]

[/FONT]6 April 2010 to 5 April 2011

Employee starts working for you on or after 6 April 2010

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Use the tax code on the P45 and enter in Box L of the P11. [/FONT][/FONT]

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Employee’s P45 has a date of leaving between [/FONT][/FONT]

[FONT=ICCID I+ IR Modena,IR Modena]

[/FONT]6 April 2009 to 5 April 2010

Employee starts working for you during the period 6 April 2010 to 24 May 2010

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Use the tax code on the P45. Do not carry forward any week 1/month 1 markings and enter it in Box L of the P11[/FONT][/FONT][FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]. [/FONT][/FONT]Employee starts working for you on or after 25 May 2010 [FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Use emergency code 647L on a week 1/month 1 basis and enter it in Box L of the P11. [/FONT][/FONT]

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Employee’s P45 has a date of leaving before [/FONT][/FONT]

[FONT=ICCID I+ IR Modena,IR Modena]

[/FONT]6 April 2009

Employee starts working for you during the period 6 April 2010 to 5 April 2011

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Use emergency code 647L on a week 1/month 1 basis and enter it in Box L of the P11. [/FONT][/FONT]

It may be that an employee starting with an old P45 in some cases may be better not using the P45 and instead using a P46 but using an old P45 should not result in a BR code being used, nor is it right to say that an old P45 cannot or should not be used as I have seen said several times by other people in other queries on this forum.

In this case I think it is possible that the P45 (which may or may not be an old one) has perhaps been mislaid or just delayed getting to the payroll dept. so would be best to check with them.

Oskar_2

Guys, thank you so much. You've all been fantastic help!:T

Hopefully I'll be able to get all this sorted ASAP.

[Deleted User]

chrisbur wrote: »

However old the P45 is (pre April 6 would be an old one) the employer does not need a P46 and code BR should not be used. The E12 (2010) PAYE and NICs rates and limits for 2010–11
has full instructions what to do, details below.

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Employee’s P45 has a date of leaving between [/FONT][/FONT]

6 April 2010 to 5 April 2011

Employee starts working for you on or after 6 April 2010

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Use the tax code on the P45 and enter in Box L of the P11. [/FONT][/FONT]

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Employee’s P45 has a date of leaving between [/FONT][/FONT]

6 April 2009 to 5 April 2010

Employee starts working for you during the period 6 April 2010 to 24 May 2010

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Use the tax code on the P45. Do not carry forward any week 1/month 1 markings and enter it in Box L of the P11[/FONT][/FONT][FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]. [/FONT][/FONT]Employee starts working for you on or after 25 May 2010 [FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Use emergency code 647L on a week 1/month 1 basis and enter it in Box L of the P11. [/FONT][/FONT]

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Employee’s P45 has a date of leaving before [/FONT][/FONT]

6 April 2009

Employee starts working for you during the period 6 April 2010 to 5 April 2011

[FONT=ICCID I+ IR Modena,IR Modena][FONT=ICCID I+ IR Modena,IR Modena]Use emergency code 647L on a week 1/month 1 basis and enter it in Box L of the P11. [/FONT][/FONT]

It may be that an employee starting with an old P45 in some cases may be better not using the P45 and instead using a P46 but using an old P45 should not result in a BR code being used, nor is it right to say that an old P45 cannot or should not be used as I have seen said several times by other people in other queries on this forum.

In this case I think it is possible that the P45 (which may or may not be an old one) has perhaps been mislaid or just delayed getting to the payroll dept. so would be best to check with them.

Which is all well and good for small Employers or manual payrolls but if you have more than 50 staff it is now mandatory to file all documents online, but alas the software won't let you submit a P45 from a previous Year so it is just easier to get a P46. This is what I do however there is no clear guidance on how to deal with old year P45 so I do wonder how some people deal with them?

Gertie_Walker

If someone has left a job before 5 PAril, then its up to them to claim a repayment using a P50. HMRC would then issue a P45 from 6 April for handing to the new employer.