BR Tax Code - Claiming back overpayment

dizzyblonde82

Hi,

My husband has been working for his current employer for 4 weeks and has received 3 weeks wages today, his tax has been calculated at BR.

On his first day at his job he filled in a P46 as his previous employer couldn't issue a P45 until he had been paid his final monthly wage which was paid 3 weeks ago, as yet no P45 or final wage slip have been received by us so still chasing that.

Can this overpayment be sorted by his current employers payroll or will he need to contact the tax office.

I realise that it may be a small overpayment of approx £100 but at the moment we really need that money as he has had 2 months earning just half his regular wage due to a number of job changes in a short space of time.

I really hope we don't have to wait until the end of the financial year to sort out this problem.

Thanks
Sarah

chanveda

Hi Sarah,

This will be sorted automatically, when his previous employed submits P45. BR assumes that you have used his personal tax free allowance of £6475 in previous employement, which wont be the case as we are still in the middle of tax year. So, once he hand over P45 to new employer, taxes would be automatically adjuested for you.

Regards,
Chandra

dizzyblonde82

We are having great difficult in getting his P45 from his employer, he worked for a spirit group pub and moved jobs part way through a month to another spirit pub and at the end of September he stopped working for spirit group. He received his final wages from each pub separately on 10th October but still hasn't received his P45 or wage slips - we sent a recorded delivery letter to them asking for these to be forwarded to our home address but as yet nothing has arrived.

Is there anyway we can resolve this issue quickly?

chrismac1

I issue this to all new employees in my clients in order to explain their P46 to them.

P46 Question - Box on P46 - tax code - meaning of code is the order, it comes out better in Excel than on here. I've put the P46 statement and tax code in bold.

Is this your first job since 6 April and you've had no taxable benefits since 6 April ? A 647L
You will get your tax-free allowance in full from 6 April.



Is this your only job - but you've have had another job or taxable benefit or pension since 6 April ? B 647L W1 or M1 You will get your tax-free allowance in full from your starting date. But if you've had "gaps" between employments this tax year, you'll pay too much tax until you submit your P45.



Do you currently have another job or state pension income ? C BR You won't get a tax-free allowance in this job. It is assumed you get the full allowance - code 647L - on your other job or pension. You'll be taxed at 20% on all your pay in this job.



Form P46 has 3 statements - A, B, C above. The notes above explain how the answer given affects the PAYE tax deducted. Ask all new starters without a P45 to read this and circle A, B or C.

In my view, his employer should have him on Statement B for his P46 and therefore 647 M1 or W1 tax code, not BR.

dizzyblonde82

My husband has just brought home this months wage slip and he is still on BR tax code even though he checked with his employer that his P46 was completed correctly. I am unsure what the next step is as he has now overpaid tax by at least £200 and we can't afford to let this happen again next month

Mikeyorks

dizzyblonde82 wrote: »

he checked with his employer that his P46 was completed correctly.

It can't have been, I'm afraid. If he ticked Box 'B' (sole job .. but other employment since April?)........ then the employer should have put him on 647M1. I think he needs a word with payroll?

But if they don't retract on the 'BR' then the 647M1 won't generate a refund ....... until HMRC issue a revised cumulative code (eg 647L) ...... or instructions in lieu of the missing P45.

dizzyblonde82

Well the saga continues, we thought that he was still on BR this month but it turns out the 647L code has been applied but no refund has been issued through his wages.

After speaking with the tax office again they have confirmed that they have previous pay details from his 3 previous employers this tax year, my husband has only worked for 2 employers though. He has been working for pub chains the last 6yrs and the 3rd employer listed are not a pub chain according to the tax office (they can not confirm the employer name but are posting us details)

So it now looks like the overpayment due back to use has been taken to cover the underpayment from the mysterious job that has been recorded under his national insurance number!!

Horseunderwater

That happened to me way back in 1997. Was signing on at the time and someone with same name as my married name began a job down in plymouth and they sent my record down to there, even though NI numbers were different and it was obvious it was wrong. Lead to big problems with DSS (DWP now) as they stopped my benefit with immediate effect and an overpayment situation. Got it cleared up as I was lucky in that I'd worked for the tax office way back and knew how it all worked. Still took a week or two and we had to borrow money to eat. It will all come right in the end. Do you get working tax or child tax credit at all? You may be able to get more if that is the case for the lower income months? Just a thought that might be worth considering.