BR emergency tax code?

LauraLeah91104

my other half started a new job in april (16th) this year, and upon checking his pay slips two weeks ago, i realised on his payslip it stated BR in the tax code, i knew i had seen it somewhere before, so decided to check it out.
My OH went to the local tax office and after a rigmoral of it only been open 2 mornings a week he was told to look out for the refund in his pay.
He is earning approx £18k a year and the minimum tax he has paid was £260 and that was the first pay. the most he has paid was £360.
But i cant understand how they can refund his overpayment into his wages as surely A) he will get taxed more because his earning for the month the refund is issued will be alot higher than usual. and its the HMRC that owe him the moey, not his employer?
Is this correct, or will we have to go back to the tax office to claim a second refund after they have sorted out the first one?

Many thanks for reading this

Mikeyorks

LauraLeah91104 wrote: »

But i cant understand how they can refund his overpayment into his wages as surely A) he will get taxed more because his earning for the month the refund is issued will be alot higher than usual. and its the HMRC that owe him the moey, not his employer?
Is this correct,

Not correct, I'm afraid.

A) The tax isn't taxable ..... it doesn't get added back onto the gross pay that's used to calculate tax / NI. He may not get a 'refund' ..... it may simply reduce the tax he pays in the month the code number changes.

The employer deducts / refunds money (as appropriate) during the tax year (Apr - Apr). HMRC only do it for 'closed' years ..... so much better to get incorrect Code numbers sorted during the year ... as any refund is applied much more quickly.

dzug1

If his earnings for the month when he gets the refund are higher, then he is due to pay tax on those higher earnings. The refund will reduce that amount of extra tax.

But why will they be higher? The tax refund is not part of his earnings if that is what you are thinking.

His employer will work out his earnings to date, the right tax on that total sum, and take away the tax already paid. The resulting amount will be taken from or added to his salary.

number9

When he gets paid and the employer uses the new tax code simply ask the wages office to show how the tax on the payslip was calaculated to check it's correct. Alternatively, get your OH to ring HMRC - armed with the payslip with the new code on - and ask them to do a "tax table check". As per the other post, best to get money back in wages rather than claim at the end of the year and wait a very long time!