Emergancy tax help

lugi86

Hi hopeing for some advice, I haven't had a job for past 2 years and therefor no p45 or any other docs. Now I've got a new job and obviously I'm going to have to go on emergency tax, How is this worked out I've seen on HMRC site that its 747L or 747L W1 but on other sites I've seen it BR which is the case? and how much on a £900 a month wage would i be taxed?

Many Thanks in advance

luigi86

dtaylor84

You should fill in a P46 and state you have had no other jobs in the current tax year.

You will then be put on tax code 747L, which is the correct code for you (unless your circumstances are unusual, or you get any benefits with your new job - e.g. a company car).

You would then normally have 7470/12 = £622 tax free allowance each month, so you would pay tax on £278 at 20%, or about £56/month.

However, as you haven't worked for the first five months of this tax year, you have about £3000 of unused tax-free allowance to use up first. If your tax code is 747L, you won't pay any tax for the first 4-5 months, until you exceed the tax-free allowance. However, if you're given a "week 1" code (747L W1) you will pay tax as normal and would need to claim back the overpayment at the end of the year (or get moved on to a non-"week 1" tax code and any overpayment would be refunded in your next pay).

If you somehow ended up on the BR tax code, you would be taxed on all your income at 20%, and would pay £180 tax per month, and again would need to reclaim the overpayment at the end of the year (or get moved on to a non-"week 1" tax code)

chrisbur

The emergency tax code is 747L, depending on your circumstances it can be applied on a cumulative or month 1/week 1 basis. The BR code is used if you have another job or income as well as the new job. or if you do not fill in the documents required to get an emergency tax code.

You need to complete a P46 or your new employers own form that they may use instead. The form will ask you to put a cross in one of three boxes. If you can select box A you will be put on 747L cumulative, box B you will go on 747L month 1/week 1 and box C you go on BR or OT.

A P46 that you can look at and download is here........
http://www.hmrc.gov.uk/forms/p46.pdf

It is as well to ask your new employer for a P46 or even perhaps print one off to take with you, as there are some employers who are not very reliable about handing them out.

In due course the tax office will look at your details and if a code different to the emergency code you are on is needed they will send it to your employer.

lugi86

Ok think i understand it! so on the p46 forum i should select A then yes? in which case i should be on 747L? What about the bottom A, B or C i.e. cumulative or non cumulative?

Thanks for the replays
luigi

ceeforcat

Tick Box A on page 1 of the form if you have not been in receipt of any taxable benefits, otherwise tick B.

Page 2 of the form is for your employer to complete.

lugi86

So which box would my employer tick just so i know! i haven't been receiving any benefits!

ceeforcat

The corresponding box. If you tick box A, your employer must apply 747L cumulative and, by ticking box A, informs HMRC thus.

As a result, you will not pay any tax until April payday, just National Insurance of about £15.60 per month.

lugi86

and then after april payday ill be on a normal tax code?

ceeforcat

Yes , although the code should change to 847L and your tax would only be about £39 per month.

lugi86

will my employer defiantly need to get me to fill in a p46 and no other form? just want to be prepared many thanks for help so far!

ceeforcat

That is the only form which is required for HMRC and you complete it for one reason only - because you have no form P45.