BR Tax code question

owlfan100

Hi there,

I hope I'm posting in the right place!

I recently came off JSA to work on a two week rolling contract for a temp agency. HR at my new job placed me on a BR tax code, and last week I handed them my P45 so I expect my tax code to be adjusted (probably to 747L - I make £600 gross per week and am paid weekly) by my next wage slip.

My question is, have I overpaid? Also, if I have, will I be refunded any overpayments in my wage slip, or will I have to apply for a rebate at the end of the tax year?

I'm actually leaving the country to attend university abroad in a few weeks and so I won't owe ANY tax on my income overall this year. I simply haven't made enough money and won't now. I know I'll get that back, but it would be great to get any overpayment due to being on a BR rate in my pay before I leave. I need every penny at the moment!

Thanks for your help.

chrisbur

What happens to your tax as a result of the P45 will depend on what is on the P45.

If you have no X in the box after your tax code at item 6 then you will be put onto a cumulative code of whatever showing in item 6, earnings and tax showing at item 7 will be added onto earnings and tax in your current job and tax will be adjusted to correct.

If there is an X in item 6 then the code will be applied on a week 1 basis and no adjustment to tax paid before will be made untill a cumulative code is advised from the tax office.

owlfan100

Thanks Chrisbur,

I checked. There's no X and my code is 747L so that means I can expect any repayment back in my wages whenever HR get around to it. Is that correct?

claire16c

If you know you wont be working for the rest of the tax year you can fill in a P50 and send to your tax office.

http://www.hmrc.gov.uk/incometax/stop-work-refund.htm

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=1CVVZ8XMWiI&formId=764

Ive done this before when Ive stopped working half way through a tax year and got the money back in a few weeks. The send it by cheque though so dont know if you have someone at home who could pay it into your bank for you when youre away?

chrisbur

owlfan100 wrote: »

Thanks Chrisbur,

I checked. There's no X and my code is 747L so that means I can expect any repayment back in my wages whenever HR get around to it. Is that correct?

When your employer applies the P45 details your tax will be recalculated and any adjustments made. I cannot definately say this will result in a refund as I do not know all the figures.