Tax question

rawkinrich

All,

I'm daft when it comes to tax issues. Allow me to run this by you.

I resigned from my last job, last day March 31st 2011 (long story). I have just started a new job on the 21st of November in which I got paid on the 30th of November. The tax code is 747L.

Am I right in saying that as the tax year started in April, will I start paying tax from my new job straight away once the HMRC give me a new tax code? Or will I be 'exempt' from paying tax for a while due to "tax-free Personal Allowance" or something.

I am in part-time employment (I earn about £1,500 a year from this) which I am paying tax on.

If you guys could shed some light on this, I would appreciate it.

Many thanks!

CLAPTON

since 6th april have you claimed JSA?

when you joined your new employer did you have a P45 from the dwp or did you fill in a P46?

with a yearly income of 1,500 you should pay no tax

you say your tax code is 747L ; is there any letters after it, like NOCUM

have you been paid and if so were you taxed

rawkinrich

CLAPTON wrote: »

since 6th april have you claimed JSA?

when you joined your new employer did you have a P45 from the dwp or did you fill in a P46?

with a yearly income of 1,500 you should pay no tax

you say your tax code is 747L ; is there any letters after it, like NOCUM

have you been paid and if so were you taxed

Hi,

• Not claimed JSA.
• Gave P45 from last job.
• I haven't contacted them to change my tax-code, I presume I'll get a rebate on this?
• Tax code is 747L, only worked there since Nov 21st so not been there long.
• I have been paid for the days I worked (started late on in the month, obviously). I wasn't taxed.

Thanks for any info mate.

Richard

CLAPTON

a taxcode of 747L is correct for normal people

it means you can earn £7,475 this tax year without paying tax

your P45 was for last tax year so has no relevance to this tax year so you should have filled in a P46; but it seems you are on the correct code anyway

so just check you future payslips but it looks as if everything is OK

rawkinrich

CLAPTON wrote: »

a taxcode of 747L is correct for normal people

it means you can earn £7,475 this tax year without paying tax

your P45 was for last tax year so has no relevance to this tax year so you should have filled in a P46; but it seems you are on the correct code anyway

so just check you future payslips but it looks as if everything is OK

Should I talk to my employer about the p46 or should I leave it? Also, will HMRC sort the tax out for the part-time job or should I contact them about it?

Thanks again

Mikeyorks

rawkinrich wrote: »

• I haven't contacted them to change my tax-code, I presume I'll get a rebate on this?

That's a bit unclear as you're indicating you haven't paid any tax? So you can't have a rebate. If you mean for the previous year? Equally shouldn't be the case as your final pay was in Month 12 - so all allowances given.

As you passed an old P45 to this employer - the Code on your payslip should should be 747L. but have a '1' after it to denote emergency code. But you still won't pay tax unless your earnings in the month are above (£7475 / 12 £623

rawkinrich

Mikeyorks wrote: »

That's a bit unclear as you're indicating you haven't paid any tax? So you can't have a rebate. If you mean for the previous year? Equally shouldn't be the case as your final pay was in Month 12 - so all allowances given.

I've been paying tax on the part-time job in this tax year, and as I only earn about £1,500 and haven't gone near the £7,475 threshold (or whatever it is) should I get a rebate?

CLAPTON

sorry I'm confused

are you saying you have two jobs?

if so can you be say exactly what the situation is

rawkinrich

CLAPTON wrote: »

sorry I'm confused

are you saying you have two jobs?

if so can you be say exactly what the situation is

I am in part-time employment in which I earn about £1500 a year. I resigned from my last full-time job in March. I've just started full-time job in November.

So I now have a full-time job and a part-time job. Hope this clears up the confusion.

CLAPTON

ok


lets start again

On the part time job:
what is the taxcode on your parttime job
how much have your earned to date (gross)
how much tax have you paid


and on the full time job
is the tax code 747L?
what is the salary?
what is the tax code on your new fulltime job

AirlieBird

Your part-time job is likely to have a tax code of BR. You've stated that your full-time job has a tax code of 747L. This should be on a non-cumulative basis since you handed a P45 from the last tax year to your employer - does it have M1 after it?

If the two jobs are with completely different employers then there will be no tax refund within your pay packets. If what you get paid in your new full-time job by the end of the tax year is less than your personal allowance then you will need to claim the tax back from your other job after the end of the tax year. If it's higher then they'll be no tax to claim back. There is a note of caution here: As I said your tax in your new full-time job should be being operated on a non-cumulative basis and if this is the case and it is not converted to a cumulative basis before the end of the tax year (i.e. no M1 after the 747L) then you will not benefit from the full personal allowance and have overpaid tax in your new job too. This will also need to be claimed back after the end of the tax year.

The other way to do it is to split your tax code between the two jobs.