Confusion over tax overpayment advice

Triangle

Hi all - apologies if this is an often asked question!

I started my employment on 4th July. Prior to this I was a student for two years. During this time, I worked occasional 'bank' shifts at an old job I left in 2007 to get some extra pennies (I was in another job from 2007-2009).

At the end of July, my payslip showed that I was an emergency tax code. Contacted payroll, they advised I send a P46 and stated the overpaid tax would be returned to me at the end of August. I have subsquently sent a P46 ticking the B box as I have worked 10 shifts at my old employer since April.

Payslip arrived today, all correct but the overpaid tax has not been returned. HR advised that I needed to contact the tax office as I was on a 1month/1 year thing - they advised I request to have a cummative tax code.

However, the guy at the tax office advised me not to do this as it would then result in the 10 shifts I worked at my old employer having a 20% tax levy placed on them, which would very likely mean that come April, I would be owing tax rather than having any returned. He also stated that my July overpayment will be returned in April, once the codes /figureshave sorted for the tax year.

Does this sound about right? Do I need to let payroll know this? I find all of this very confusing so any help will be much appreciated.

T

CLAPTON

so you worked between 6th april and 4th july?
did they give you a P45?
what does it say?
what taxcode were you on for that job?

Triangle

Yes, I did occasional shifts between 6th April and 4th July, which is why I ticked the B box on the P46 for my new employer. I have not got a P45 as I guess offically I am still on their books so to speak. I received a P45 from them when I left in 2007 but I came back spordically to do occasional shifts.

The tax codes on my payslips in April and May is 747L. In April I paid £29.60 tax on £772.20 gross, this amount was refunded at the end of May on £175.20 gross.

Thanks.

dori2o

OK so you effectively have 2 jobs. The 'Bank' work you have been doing seems to have had a 747L tax code operated against it, and when you started your new job they were originally deducting tax at the Basic rate or using tax code 0T.

The problem now is that you want your allowance set against your 'main' employment that you started on 4th July. The problem is in order for HMRC to do that, and for you to be repaid any tax you may have overpaid in the current year they will need to know the details of what income you have received, and tax you have paid from the 'Bank' work job. This is only confirmed to HMRC via a P45 during the year, or on the P60 at the year end.

So, unless you leave the Bank job it will not be possible for HMRC to allocate a cumulative code to your 'main' employment. The HMRC advisor is quite right. Allocating a cumulative code at this time without p45 details will result in you being underpaid at the year end.

The best option for you at the moment, and until such a time as you end your 'Bank' work employment, is to ask HMRC to issue a 747L week 1/Month 1 tax code to your main emplyment, and issue a BR week 1/month 1 tax code to the 'Bank' job.

At the end of the year once you have received your P60's you can telephone HMRC and request a repayment of overpaid tax.