Income tax, bloody confusing

Fay_elizabeth

Hi all,

So, In May this year I started working in a pub earning very little, I worked there until 1st August and earnt approx £2500 the whole time I was there. From April until May I was unemployed and although I registered at the job center and applied for job seekers allowance I was told I wasn't eligible because I hadn't paid enough N.I contributions. In August I moved back with my parents, quit my pub job and started working in a factory, I received my first pay check today and I was horrified to see that I paid £166 tax, £101 N.I and £22 to the student loans company, my net pay was £1405 but my take home was £1115.

Now, I'll only be doing this job up until Christmas and then I'll probably do another part time pub job which will downgrade my earnings significantly. So my question is, when can I claim this tax back if I can claim it back at all? I thought I would be allowed an allowance of £7000 or something before I was taxed? Confusing.

McKneff

You are allowed an allowance of £7475 per year (i think thats the figure) but if you divide that amount by 52, then that is the amount you can earn per week before you start to pay 20% tax. If you dont work one week then that weeks allowance is tagged on to the next week and so on and so on.

Did you hand your p45 to your new employer, if you didnt have one then you should have filled in a p46, only then can the HMRC work things out for you. Your employer will probably sort it out for you through payroll once the HMRC have given them the correct tax code to apply to your salary.

At the end of the tax year if you check to see if you have over paid tax you have to apply to the HMRC for a refund of any overpaid tax.

CLAPTON

it looks as if you have been taxed on a non cumulative tax code
i.e. 747L wk1 or 747LM1 or equivalent

when you started this job did you give them a P45?
or did you fill in a P46? ..if so which box did you tick?

presumably you are paid 4 weekly?

what is your taxcode?

Fay_elizabeth

Hey guys, thanks for your replies. I am paid 4 weekly yes, my tax code is 747L W1.

I didn't give them a p45 from my last job but I did fill in a p46. I'm not sure which box I ticked, what were the options likely to have been?

CLAPTON

Fay_elizabeth wrote: »

Hey guys, thanks for your replies. I am paid 4 weekly yes, my tax code is 747L W1.

I didn't give them a p45 from my last job but I did fill in a p46. I'm not sure which box I ticked, what were the options likely to have been?

see http://www.hmrc.gov.uk/forms/p46.pdf


however without the figures from your previous emplyment (P45) they would put you on a non cumulative tax code

so you need to phone the HMRC and explain the situation making sure you have your figures from the previous job