0T MT tax code?

louiserer

I have just been paid from my new job with this tax code? What does it mean and do you think I'm going to get stung in the future?

Many thanks,

Louise

jem16

louiserer wrote: »

I have just been paid from my new job with this tax code? What does it mean and do you think I'm going to get stung in the future?

Many thanks,

Louise

It means you have been given no tax free allowance and all of your salary will be taxed at 20%, 40% or 50% depending on amount involved.

Did you have a P45 from your previous job? If so did you hand it in?

If you have no P45, did you complete a P46?

A P45 or P46 is the only way to get the correct tax code.

louiserer

I handed in my notice on 4/10/11 and was asked to go straight away so I started my new job the next day.

I am still owed pay for sept which I'll get 28/10/11 and October notice pay which I'm not sure when they'll pay.

The new job has paid me on that tax code.

When should I get a p45?

It's probably such a silly question but I don't change job very often!

jem16

louiserer wrote: »

When should I get a p45?

After your last pay from them.

Meanwhile you would be better completing a P46 and ticking Box B to state that you have had another job since April 6th but this is now your only job. At least that way you would be put on a 747L tax code on a non-cumulative basis. This would allow you to get the benefit of your tax free allowances but not take any previous tax information into account until the previous job's pay is sorted out.

You can download a P46 here and hand it in.

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

serious_saver

jem16 wrote: »

After your last pay from then.

Meanwhile you would be better completing a P46 and ticking Box B to state that you have had another job since April 6th but this is now your only job. At least that way you would be put on a 747L tax code on a non-cumulative basis. This would allow you to get the benefit of your tax free allowances but not take any previous tax information into account until the previous job's pay is sorted out.

You can download a P46 here and hand it in.

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

^ This is good advice ^

As you are clearly paid PAYE, once you are back on the correct tax code you should automatically be returned any overpayment in your first correct pay slip.

I was also confused when I first saw the OT tax code. In April 2011 it replaced the old BR tax code.

louiserer

Thank you for all your help.

I am confused as this is what I thought was going to happen,

I handed in my notice 3/10/2011 and was asked to leave immediatly (expected for car sales people)
I started new job 4/10/2011

I thought I would be paid 28/10/2011 for september pay from old job

Paid 25/11/2011 new job basic pay for October from new job

Paid 28/11/2011 old job basic pay for notice period (October)


However, I have been given a cheque today from my new job for October?! This is the one showing the 0T tax code?

jem16

louiserer wrote: »

However, I have been given a cheque today from my new job for October?!

This is obviously the pay run for yur new job.

This is the one showing the 0T tax code?

That would be correct as you have not given your new job your P45 or completed a P46 so OT is the code they must use.

As I said complete the P46 unless you think your P45 will arrive before your next pay day.

chrisbur

If you fill in a P46 and your new employer uses the emergency code while your old employer is still paying you then you will be undertaxed. You will in effect be getting two tax allowances for each month that both employers pay you. By all means complete the P46 but be aware that when the P45 is issued and given to your new employer there will be some extra tax to pay for any month when both employers have given you a tax allowance, and this will be collected from your first pay after the P45 is applied. If you leave it as it is paying on OT then assuming that you are not into the higher tax band your tax will be about correct while you are getting paid by both employers. If you are into a higher band then there will be some underpayment which will correct when the P45 is applied.

jem16

chrisbur wrote: »

If you fill in a P46 and your new employer uses the emergency code while your old employer is still paying you then you will be undertaxed. You will in effect be getting two tax allowances for each month that both employers pay you.

Chris is quite right here.

I was thinking of the situation where you had left your old job and been paid up to date but had not yet received a P45.

dawyldthing

i'm glad someone asked this as i'm in a similar position where i've been taxed the 0t i think the code is and thought i'd been taxed on the lot, so hopefully eventually it will be sorted. How long are you supposed to give employers to send you your p45 btw?

chrisbur

dawyldthing wrote: »

i'm glad someone asked this as i'm in a similar position where i've been taxed the 0t i think the code is and thought i'd been taxed on the lot, so hopefully eventually it will be sorted. How long are you supposed to give employers to send you your p45 btw?

The question is are you in a similar position? The OP is recieving pay both from their last employer and their new employer, if this is the same with you then your P45 will not be issued untill some time after you have had your last payment from your old employer.
If your old employer has finished paying you and you have not yet had a P45 I would chase them up and in the meantime do a P46 to get onto an emergency tax code.