P45 after signing off JSA - correct or not?

thriftymanc

Question on behalf of a friend who has just signed off JSA. He has just received his P45 from them, and it says:

Tax code at leaving date: 647L
If week 1 or month 1 applies, enter X in the box below: X is entered

Should the X be in the box or not? My friend doesn't think so but can't get through to anyone at his tax office, it's always engaged every time he phoned. It's far away from him so he doesn't want to have to go in in person unless he needs to, so clarification would be nice if anyone knows the answer.

He had a P45 from his last job before he signed on (he was made redundant in summer). He thought the week 1/month 1 only applied if they didn't have this information i.e. didn't know how much you had earned so far in the current tax year and had to put you on emergency tax. Does this mean he will be taxed too much given that he has barely earned anything so far this tax year?

Thanks!

wajoda2002

Hi,

did he start this tax year i.e april? also, did he supply a valid P45 or did he sign a P46? if he signed P46 then I am guessing he ticked box B which would put him on a week 1 month 1 code.
If he left in the same tax year then this is why. When he starts his new job, he will need to submit his p45. once they submit this to HMRC, the employer/ee will receive a P6 notice with the correct tax code. However, there is not much difference in 647l and week/month 1. depending when the he starts working again, he may get a little refund on his first salary - please don't take that as fact though as I din't have figures etc.

Gertie_Walker

If he didnt receive a tax refund from the DWP, then they have not used the P45 he gave them - not unusual. He will need to ring the tax office once he starts his new job and ask them to issue a code to the new employer to include both the pay and tax to the date of redundancy and the JSA received. New employer will then make the refund.