Incorrect Tax Code Issue!

jimmyleaman

Hello all,

First of all I'd like to say I've come to this website as it looks like somewhere I'll be able to get some advice on my situation :beer:

In late Decemeber I finished at Tesco Express and was offered a Christmas Temporary contract at my local Marks & Spencer store. During my Tesco Employment i was on 747L tax code. At M&S I was put on a weekly wage of £240.00 however noticed that I was on a tax code of 0T which i believe to be an emergency tax code..
Around mid december I recieved my P45 from Tesco and handed it in to M&S HR department so they could then sort out my tax code and with it, a tax refund.
I continued to recieve weekly pay for another 3 weeks until my contract came to an end on 31st December 2011. Unsuprisngly my tax code for all my payrolls where still 0T.. About 4 days after my termination of contract I recieved my M&S P45 which stated my tax code as 0T, Total Pay of £950.40, Total Tax of £190.00. On Tuesday 10th Jan, i recieved my final paycheck from M&S which was held back from my first week of work; this included £240.00 basic pay + holiday which amounted to around £300.00 and £63.00 tax was taken My first question is: I recieved my P45 before my final pay from M&S.. does this matter?

As hoped, I was then offered a permanent contract at M&S of which im now 2 weeks into.. My payrolls are still stating 0T tax code..

I went into the HR department yesterday and queried them about my Tax code further, they asked for a P45 and i stated that i gave them my P45 back during my temporary contract. The lady said to me that she will need another one as my employee number, contract..etc has now changed!
Because I gave M&S my P45 from Tesco, the only P45 i have is the M&S one which states the emergency tax code.. Anyhow i gave them that but they didnt seem to know whether it would do.

Following the unconvincing discussion with HR, i decided to ring the Tax Office today. I stated the problem, and the lady advised me that they had not recieved my P45 from Tesco :mad: and that i needed to provide some information such as:

Employee number(Well this has changed twice with M&S)
PAYEE number?
Start date

I'm really at a loss to do now and need some advice in helping me get my tax code corrected and claim my tax refund

Thanks all.

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10013512
http://www.rossmartin.co.uk/index.php/employers/essential-know-how/602--ot-and-additional-rate-paye-codes

http://www.hmrc.gov.uk/incometax/overpaid-thro-job.htm
Employee number - I should think they would need the current one?
PAYE (rather than PAYEE?) Pay As You Earn number? M&S should supply you with this or is it on your pay slip?
Have you kept the P45 Part 1A for your own records?

jimmyleaman

I have the Employer PAYE Reference.
Im not sure whether it's on my Payroll yet as due to being issued a new employee number.. etc, my online payroll isnt active until next week (My next wage).

I have both my Tesco (747L) P45 Part 1A & the M&S (0T) P45 Part 1A..

chrisbur

Anyone starting in a new employment who does not hand in a P45 should be asked by the new employer to fill in a P46. This form enables the new employer to apply the emergency tax code to the new employee. The emergency tax code is currently 747L and in your case would have been applied on a week 1/month1 basis. If you failed to fill in the P46 then the code your employer must use is OT, it is not the emergency code it is the code used if the emergency code is not used. Was a P46 or their equivalent offered to you, if not then might be worth asking if one would be accepted now at least getting you onto a real emergency tax code. Beyond this it looks like your P45 has been lost so all you can do is give the tax office all they ask for and wait for them to issue tax code, pay and tax details to your employer.

jimmyleaman

chrisbur wrote: »

Anyone starting in a new employment who does not hand in a P45 should be asked by the new employer to fill in a P46. This form enables the new employer to apply the emergency tax code to the new employee. The emergency tax code is currently 747L and in your case would have been applied on a week 1/month1 basis. If you failed to fill in the P46 then the code your employer must use is OT, it is not the emergency code it is the code used if the emergency code is not used. Was a P46 or their equivalent offered to you, if not then might be worth asking if one would be accepted now at least getting you onto a real emergency tax code. Beyond this it looks like your P45 has been lost so all you can do is give the tax office all they ask for and wait for them to issue tax code, pay and tax details to your employer.

Thanks Chris I shall ask M&S tomorrow about the P46 as this seems the only way to go about this in the quickest manner!

Is it not quite irresponcible for M&S to lose my P45 if that is the case as this 0T is leaving me short!

Can i ask what week1/month1 means?

Thanks, Jimmy.

xylophone

In your position, I would wait for your next payslip then send a copy of it together with copies of the two P45 1As and a covering letter to your tax office - details should be on your payslip - if not see link previously provided.

I always use recorded delivery when sending papers to HMRC.

jimmyleaman

Also, as I did hand in a P45, in theory I should of been on 747L to start with?

jimmyleaman

Thanks guys;

The P45 i recieved from M&S Stated that I paid £190.00 tax for £950.00 earnings.. Since recieving that P45 i've been taxed a further £120.00 for the following wages once started as permanent. I'm sure this is a silly question but the tax office wont refund only the £190.00 stated on the P45 will they?

xylophone

Why not set out full details in your covering letter just to be sure?

chrisbur

jimmyleaman wrote: »

Can i ask what week1/month1 means?

Thanks, Jimmy.

If you are paid monthly then each payday you get 1/12 of the tax allowance set against your wage and what you earn over that is then taxed. Each month is worked out seperately and no adjustments are made for previous months, so if you have overpaid this will not be corrected untill the month 1 code is changed to cumulative. This will not sort out your tax overpayment but will reduce the tax you pay untill it is sorted out.

Regarding the tax paid after the P45 was issued, if this pay and tax was not included in the P45 it will not be advised to the tax office untill after the tax year has ended. Whether this works out correctly will depend on what you have earned during the year, so would be as well to check your tax at year end.