Income Tax

nannytone_2

Ok, probably not the right place for this post, but I didn't know where it should go!

My step sons girlfriend spoke to me this morning.......here is her siituation.

works for an agency since November last year, and has worked exclusively in the same place since then ( rehabilitation centre for people with brain injuries)

she has filled out a P46 and given it to the angency ( first job)

she has paid emergency tax since starting ( earnt 5k, paid 1k tax)

she hasn't received a P60

Today she was paid ( first wage of the new financial year) and is still on the 'BR' tax code.
The agency say they have passed her P46 on to HMRC and have told her to take it up with them. Hmrc are a nightmare to get hold of, but this morning I took her into the tax office to try to sort it. They say with no P60 and while she is still on @emergency Tax' they cannot issue a tax refund, but had no real answers why it isn't being sorted.

They live with my partner and I, and we are having to fund them, which we can't afford.

What should the next step be?
any advice appreciated.

MrsManda

Has she received a coding notice from the HMRC for 2011/12?
She should've received one at some point in the last few months.

Her employer has until the end of June to provide her with a P60. Once she has this she'll be able to apply for a tax refund from the HMRC.

http://www.hmrc.gov.uk/incometax/overpaid-thro-job.htm#3

http://www.hmrc.gov.uk/incometax/tax-codes.htm

chrisbur

Which section was selected on the P46. There are three options A, B or C. The tax code used by the employer will depend on which box is selected. They should only use BR if option C is selected or if no option is selected, or if the employee declines to fill out the P46. If option A or B was selected then they should have used the emergency code (last year 647L) on either a cumulative or non-cumulative basis.

If the employer has used the wrong code and does not understand the P46 procedure, I think that you would be best to contact the tax office as they may well assume the correct code is being used from the way the P46 was completed and that they do not need to issue a code.

nannytone_2

she's received nothing at all.

she started uni last september and quickly realised it wasn't for her. OK it was a silly thing to do but, she took out a 'student' interest free for a year credit card. now the year is up in September. the annoying thing is that the tax refund she is owed will pay it off. but getting it back is another story!

as a couple, they needed a car. we live in a rural are, and my step son is a football coach. he has several paid sessions a week amounting to about £500 a month. the problem is, because she's on a BR tax code, their outgoings with the car loan, insurabce and fuel are above their incomings.

theyre not looking for 'something for nothing' but the whol;e tax situation is making them increasinngly in debt!

'on pper' the steps to take are easy. but in practice it's proving a whole lot more difficult.

nannytone_2

chrisbur wrote: »

Which section was selected on the P46. There are three options A, B or C. The tax code used by the employer will depend on which box is selected. They should only use BR if option C is selected or if no option is selected, or if the employee declines to fill out the P46. If option A or B was selected then they should have used the emergency code (last year 647L) on either a cumulative or non-cumulative basis.

If the employer has used the wrong code and does not understand the P46 procedure, I think that you would be best to contact the tax office as they may well assume the correct code is being used from the way the P46 was completed and that they do not need to issue a code.

I don't know which parts she filled in and, i suspect, that she won't know either. she's only 19 and kids arent reliable with this kind of thing lol

i'll get hold of her at 6 when she's in from work and try to make sense of it.

evenasus

There may be some helpful information on this website...

http://www.payroll-help.com/faq/how-does-my-employer-know-my-tax-code/

No P45?
What happens if you don’t have a P45 to give to your new employer? There are a number of reasons why you may not have a P45. You may not have worked before, or have been self-employed. You may never have worked in the UK before. Your previous employer may not have given you the P45 yet. Or you may simply have lost it. Whatever the reason, if you cannot give your new employer a P45, the employer must give you a form P46 to complete.

There are two exceptions to this.

(1) If you will be working for the employer for no more than one week in the tax year, you do not need to complete a form P46. If your employer knows you have another job, your tax code will be BR. If your employer does not know whether you have another job, you will be given the emergency tax code, i.e. 647L for 2009/10, applied on a ‘W1′ basis. (See What does the ‘X’ (or ’1′, or ‘W1′ or ‘M1′) after my tax code mean?

(2) If you are a student and meet the conditions for being paid without the deduction of tax (see I am a student at college or university. How can I be paid wages without paying tax?), you do not need to complete form P46. Your tax code will be NT.

Completing form P46
If those two situations do not apply, you must complete Section 1 of form P46. There are three statements and you must tick one of them and then sign to confirm that the one you have ticked describes your current circumstances. The statements are:

Statement A: This is my first job since last 6 April and I have not been receiving taxable Jobseeker’s Allowance or taxable Incapacity Benefit or a state or occupational pension.

Statement B: This is now my only job, but since last 6 April I have had another job, or have received taxable Jobseeker’s Allowance or Incapacity Benefit. I do not receive a state or occupational pension.

Statement C: I have another job or receive a state or occupational pension.

Depending on the statement you choose to tick, your employer will allocate the appropriate tax code. If you ticked

Statement A, your tax code will be the emergency tax code, applied cumulatively, i.e. 647L for 2009/10. As you have only just started work, the assumption is that your have not yet had any of your tax free pay for the year. The emergency tax code applied cumulatively will give you your full tax free pay over the remainder of the tax year.

Statement B, your tax code will be the emergency tax code, applied on a ‘W1′ or ‘M1′ basis, i.e. 647LW1 or 647LM1 for 2009/10. The assumption is that you have already received some ‘tax free pay’ (see What does my tax code mean?) in the tax year to date, so you may only have the remainder of your tax free pay for the remainder of the tax year.

Statement C, your tax code will be BR. The assumption is that all of your ‘tax free pay’ (see What does my tax code mean?) is allowed against your earnings in the other job or against your pension, so you must pay basic rate tax on all of your earnings with this employer.

If you do not tick any of the statements, your tax code will be BR and you will pay tax at 20% on all of your earnings.

Other situations
There are some other situations where your employer may be told to adjust your tax code.

If you receive a form P2 Notice of Coding from your tax office giving you a new tax code and explaining how it is worked out, your employer will also receive a coding notice showing the same tax code (but without any explanation of how it is determined), with instructions to apply it on your next payday or, if it is too late for your next payday, to the payday after that.

Every year, the Chancellor increases the personal allowance and may make other changes in the Budget. These may also result in a change to your tax code from the start of the tax year and/or in May or June.

If you leave your employment and, sometime later, your previous employer has to make a further payment of earnings to you, your tax code for that payment will be BR. This is true even if you were paying tax at the higher rate (40%) before leaving the employment, or your tax code was D0.

nannytone_2

it would be so easy if i was speaking on my own behalf. but she's a kid.................what i'm getting from her is her own perspective................and that really isnt fact lol
her [EMAIL="employer@the"]employer@the[/EMAIL] agency' won't talk to me and the tax office seem as confused as we are!!!

just hope my shampoo and conditioner last the test lol