P46 query

martyp

Hi all,
I'm stuck on the above form with regards to 'Personal Circumstances'. I don't know whether to tick A or B:
A - This is my first job since last 6 April and I have not been receiving Jobseekers Allowance etc...
B - This is now my only job, but since last 6 April I have had anothe job, or have received taxable Jobseeker's Allowance etc...

My circumstances are that I have been doing a job on contract through an employment agency since before April 2010. I'm going permanent with the company doing the same job. If I'm doing the same job but going from being external (agency) to an internal employee what would that be for the above?
Many thanks in advance

rebeccak

B because you have had a taxable income since April - and it is another job because you are being employed by someone else on a different contract, even if the work is the same.

martyp

Many thanks rebeccak, I was thinking it might be B but just wanted to be totally sure as I was worried about ending up on basic rate tax or something...

Lokolo

You will do until you get a P45 from the temp agency.

I assume your previous employment was through the agency, whereas now its through the company.

liney

You tick statement B and you will be put on a week1/month 1 tax code (not basic rate) which basically gives you a weekly tax allowance but doesn't take into account previous earnings (non cumulative).

The agency will give a P45 and you hand that in to put you on a normal tax code and any adjustments will be made.

If you do not fill in the P46 you will be on BR (basic rate).

SeduLOUs

martyp wrote: »

Many thanks rebeccak, I was thinking it might be B but just wanted to be totally sure as I was worried about ending up on basic rate tax or something...

Tick box B as you have had previous earnings. You would only be put on a basic rate tax code if you tick box C.

From HMRC website:

If your employee doesn't have a P45 they'll need to complete form P46. (Read the guide 'Taking on a new employee' for more on this.)



In the Tax code used part of section two on the P46:

• tick box A, B or C in line with the box ticked in section one
• enter the tax code indicated in the table below

You should then enter this tax code in the 'Tax code used' field of your software or Box L on the P11.
Box ticked on form P46 Tax code to use
A 647L cumulative
B 647L week 1/month 1
C BR cumulative
None BR cumulative

martyp

Many thanks all, it's sorted now

markbass

What would happen then if you started a new job without a P45 and ticked the wrong box by mistake on the P46 that you gave your new employer, lets say B instead of A......?

liney

I would imagine that the tax office upon reciept of the P46 would look at your record, know you have been paying tax elsewhere, and correct the code which means clawing back any underpayment via your salary.