New Tax Code OT W1, Very Confused, threshold?

jem16

*speed-queen* wrote: »

Aha,
very useful
I completed a P46 form for when a student goes over their personal allowance a couple of weeks ago

So have you also been completing a P38 form?

chrisbur

*speed-queen* wrote: »

Aha,
very useful
I completed a P46 form for when a student goes over their personal allowance a couple of weeks ago
Ticking box A
'– This is my first job since last 6 April and
I have not been receiving taxable Jobseeker's
Allowance, Employment and Support Allowance
or taxable Incapacity Benefit or a state or
occupational pension.;

Apparently when you tick box A they 'start deducting tax using the code OT on a week 1/month 1 basis'

so thats right then as far as that form is concerned.....

I suppose it makes sense, but If its not what tax code I'm supposed to be on as far as HMRC are concerned, I dont want it to come back and bite me in the bum

but I'm still confused,
It would have been nice to inform me what the forms/ changes meant, and why I needed to do them

will try go through it all with my boss next week

Problem is that this procedure is only for students working during holidays, you should never have been on NT code in the first place. Even allowing for this it has been applied wrongly, the OT week 1 code should be used when the student has a payment that would take them over the £6475 tax allowance. This results in the tax being paid at the year end being about correct. In your case it has been applied at a much lower figure.
If you are left on OT week 1 untill the year end you will be overtaxed.
If you are left on OT week 1 untill you tax paid is about equal to what it would be on 647L cumulative you can then be put onto 647L cumulative and your tax will be correct for the year.
Only the person doing the payroll can tell you what their plan is.

patanne

This is now the second year your payroll person has got it wrong and whoever it is they have tried to avoid you having a week without pay, so that is a good thing (although it shouldn't have happened at all). You now need to watch that by mid February you are put on 647L and by that I mean not on 647Lwk 1, by then your tax should be up to date. To make sure you don't get the same thing happening all over again next year, you need to check the tax code you have on the first payday after 6th April. This should be going up by 100 to 747L unless there are any other changes.

jem16

Perhaps they need to stop treating her as a student only working in holiday time which clearly she is not.

Mikeyorks

*speed-queen* wrote: »

but I'm still confused,

I'm not surprised.

As HMRC have already issued a Code 647L (and say they will confirm that in writing) .... there would appear no rationale for a P46. And a P38 is equally not applicable.

Your payroll lady appears to be operating in a time warp and making things difficult for both of you. You need to get it across to the boss that he's likely to come under HMRC scrutiny if he continues to allow PAYE to be operated haphazardly.