Reclaiming tax confusion!

xanthereanne

Hi,

I'm don't really understand much about tax codes/reclaiming tax and am wondering if anyone can give me advice (sorry it's a bit of a long story).

I worked through an agency from May last year and got taken on at the company permanently from 3rd December last year. I did not receive my P45 from the agency until last week so I got emergency taxed for January's pay. Payroll at my workplace put me on the tax code 647L M1 for February's pay so I didn't get emergency taxed (but I think I may have been taxed more than I should still.)

I've given my P45 to Payroll today and a member of staff pointed out that the tax code I was on whilst working through the agency from May-December wasn't 'cumulative' and I was on 'month 1' the whole time. I sort of understand what she means by this as she explained it, but does this mean I have been paying too much tax since May 2010? She said there may be a legitimate reason I was on this code, but she asked me some questions (eg. do I have a second job) and it doesn't seem like I should be on the code.

Also, how would I go about claiming this back if I am owed something, and how would I get back the emergency tax from January? The agency I worked for is based in Glasgow and the company I work for now is based in Leeds, so would I have to contact 2 different tax offices?

Sorry, I'm really not clued up on this sort of thing and it's all getting a bit confusing. Here's to hoping I am owed a nice chunk of money! Any help would be appreciated.

Thanks

dzug1

Yes you are due a refund. Too late to get it through your pay this tax year so you will have to write to the tax office at the end of the tax year (the one for your current employer will do), give details of your earnings and eventually you will get it. You may need to wait until you have your P60 to do it or at least before it can be processed.

You also need to get your tax code sorted out so that it's not on month 1. It won't make much difference in the new tax year unless you change jobs again.

The problem stems from the Agency - they will have put you on that code and should have given you a form to fill in - they either didn't, you filled it in wrong or it got lost. There will be some tax due back from then but probably not a vast amount

patanne

I doubt it will be a chunk of money unfortunately. If you didn't work or claim JSA during April then the rebate will be approximately one twelfth of the total tax you've paid. Unless, that is, you were paid a final payment from the agency in the same month as the first payment by your current employer. The agency should have asked you the same questions that your current employer did about other jobs & previous earnings. Did you give them a P45 from your previous employer? Agencies seem to be a little lazy about their employees tax affairs

xanthereanne

Hi, thanks for the replies!

I only just received the P45 from the agency I worked through from may-december and only received my P45 from the agency I worked through before May a few weeks ago!

I have just spoken to the tax office and the lady I spoke to has taken the fax number for my payroll department and said she will take me off 'month 1' and fax payroll my new tax code, so I should get back anything I'm owed in my next pay.

I'm a bit confused because the lady I spoke to at payroll said because I'm on 'month 1' on my last P45 she can't sort out my refund for the next pay day and I would have to get it direct from the tax office.

(Sorry if all this sounds stupid. I've only been in full-time employment since last year and can't get my head around all this tax and codes and forms business!!)

jennifernil

It will all depend on when you get paid.

The tax year ends on 5th April, so if you have another pay day due before then, and your employer has the new code far enough ahead of that to use it, then you would get any tax refund due.

xanthereanne

My pay day will be 1st April, and I think the cut off to make any changes is 15th of every month so hopefully I'll get it back.

Thanks for your help

Mikeyorks

Bear in mind 647L M1 - is emergency code. It gives you all your basic personal allowance. But it doesn't facilitate any refund being made if any is due for any reason (eg a period between jobs).

So I don't see any refund being due for the period May - December. But something may be due if you weren't employed in the April.