P45 or P46?

Comstock

I started with a new employer on Monday. I filled in a P46 on the first day. However my p45 from the job centre came today.

It gives a tax code of 747L, my total taxable benefit in the period I was unemployed (2121.44) and there is an X in the week 1/month 1 box, with no total pay to date.

Should I take this form into work tomorrow, or just let the P46 stand?

chrisbur

Hand in the P45; remember to keep Part 1A. You will stay on emergency tax for the time being but handing in the P45 may speed up the issuing of details to your employer that will get you off the emergency code.

sarahk100574

Comstock,

P46 is fine in your case as both the P45 & P46 will put you on a tax code of 747L W/M1. There is no such thing as emergency tax, so don't worry.

Mikeyorks

sarahk100574 wrote: »

There is no such thing as emergency tax, so don't worry.

How would you define it then?

http://www.hmrc.gov.uk/incometax/emergency-code.htm

CLAPTON

a 747L m1 tax code may well mean you are charged too much tax
however that depends upon your total earnings since 6th april and the total tax you have paid

Savvy_Sue

Another vote for handing in the P45 as it should speed up getting your tax affairs straight.

sarahk100574

Mikeyorks wrote: »

How would you define it then?

http://www.hmrc.gov.uk/incometax/emergency-code.htm

I would define it as 'standard'..... emergency tax imo gives people the impression that they are paying an enhanced/higher rate of tax when this is not the case (these days).

In the op's case, both the P46 & P45 give him a tax code on M/W1 - and sending duplicate forms to HMRC will certainly not speed anything up. it is likely to cause delay, if anything, in my experience. Anyway, its all heresay... even if he hands it in the payroll dept. probs won't process it as they have already taken care of it with the P46.....

sarahk100574

CLAPTON wrote: »

a 747L m1 tax code may well mean you are charged too much tax
however that depends upon your total earnings since 6th april and the total tax you have paid

true.... but as DWP puts all claimants on M/W1 at the start of each year then his P45 will not put him on a cumulative code anyway.... his new employer will probs get a P9 before year end to change it back to !!!. but sending in a P45 won't make it happen any quicker....

Mikeyorks

sarahk100574 wrote: »

I would define it as 'standard'..... emergency tax imo gives people the impression that they are paying an enhanced/higher rate of tax when this is not the case (these days).

Basically agreed .......... so why not phrase it that way in the first instance and avoid, rather than creating, confusion in the minds of people less knowledgeable on taxation matters?

sarahk100574

Mikeyorks wrote: »

Basically agreed .......... so why not phrase it that way in the first instance and avoid, rather than creating, confusion in the minds of people less knowledgeable on taxation matters?

Ok, fair do's I should've made myself clearer... but it wasn't me that used 'emergency' tax, it was another poster who does understand tax and so should know better than to scare the be-jaysus out of the OP by even using the 'E' word lol!

chrisbur

sarahk100574 wrote: »

Ok, fair do's I should've made myself clearer... but it wasn't me that used 'emergency' tax, it was another poster who does understand tax and so should know better than to scare the be-jaysus out of the OP by even using the 'E' word lol!

As the poster who used the term emergency tax I would like to state that I did not intend to scare anyone, in fact only someone who has absolutely no knowledge of the tax system would even suggest that you need to be afraid of the term emergency tax. I have on several occasions advised posters that they need to get themselves onto an emergency tax code as on many occasions by not being on an emergency code that poster has been paying far more tax than they need to. The purpose of emergency tax is to avoid paying excessive tax while your tax position is being sorted out. Indeed it can happen that paying emergency tax sometimes results in employees paying not enough tax rather than to mutch tax.

Emergency tax is NOT a punishment it is just a temporary measure that is a best guess at correct tax untill the proper tax situation can be sorted out.

Emergency tax is not your ememy, it can be your friend, do not be afraid of it.