Non cumulative tax code question...

taka

I'm not sure if this is the correct place to ask this but I have a question about my tax code.

I was employed (for several years) in job A and was made redundant at the end of July 2011. My tax code was 747L for this job. I was on JSA for August and started job B (ironically with my old employer again just in a different role!) at the start of September. My tax code is now 747L Non Cumulative. In both job A and B I pay(ed) tax as my earnings are over the tax allowance.

I've googled non cumulative tax codes and this seems to mean my tax allowance divided by 12 = tax allowance for the month. Is this correct? The non cumulative part is new with this new job B.

I passed on my Job A P45 to the job centre and passed the JSA one to my employers when they came through.

My payslip just turned up for this month but HR have already gone for the weekend so I thought I'd ask here! How do I tell if I've been taxed correctly this year? The calculate your tax type websites never mention non cumulative codes so I don't know if this would make a difference?

Thank-you!

dori2o

taka wrote: »

I'm not sure if this is the correct place to ask this but I have a question about my tax code.

I was employed (for several years) in job A and was made redundant at the end of July 2011. My tax code was 747L for this job. I was on JSA for August and started job B (ironically with my old employer again just in a different role!) at the start of September. My tax code is now 747L Non Cumulative. In both job A and B I pay(ed) tax as my earnings are over the tax allowance.

I've googled non cumulative tax codes and this seems to mean my tax allowance divided by 12 = tax allowance for the month. Is this correct? The non cumulative part is new with this new job B.

I passed on my Job A P45 to the job centre and passed the JSA one to my employers when they came through.

My payslip just turned up for this month but HR have already gone for the weekend so I thought I'd ask here! How do I tell if I've been taxed correctly this year? The calculate your tax type websites never mention non cumulative codes so I don't know if this would make a difference?

Thank-you!

Does the P45 from the job centre show your total income to date, or just the JSA you received.

It sounds as though the job centre have not applied the information from your Job A P45 onto their system (this may be because you didn't hand it to them the first day the claim was made, it may be because they simply didn't do it).

You will need to forward your copy of the P45 from the job centre onto HMRC as they will not receive this information until much later in the year. Once they have received this, assuming they have the P45 from Job A, and hold the information about Job B, they will be able to issue a revised cumulative tax code to your employer. This will enable the employer to refund you anything you have overpaid so far.

You will need to do this quickly in order to have your code changed as there is now less than 6 weeks remaining in the tax year.

If you are happy to wait until after the end of the tax year (i.e. after 5 April) then still send the information to HMRC so they can update the PAYE record, and once they receive the P60 information from Job A and Job B they will review the year for you and issue any refund due.

jem16

taka wrote: »

I've googled non cumulative tax codes and this seems to mean my tax allowance divided by 12 = tax allowance for the month. Is this correct? The non cumulative part is new with this new job B.

Both cumulative and non-cumulative tax codes divide the allowance by 12 and give you a part of your allowance each month.

The main difference is that the cumulative tax code takes into account previous earnings and tax paid throughout the tax year and adjusts if necessary. This makes no difference if you work for the full tax year and earn the same each month. Where it makes a difference is if you have gaps during the tax year or where your earnings differ each month.

How do I tell if I've been taxed correctly this year?

You would need to add up your total income and then take of £7475. If the rest falls below £35,000 then tax it at 20%. Check this total against tax paid.

taka

Thank you both!

dori2o wrote: »

Does the P45 from the job centre show your total income to date, or just the JSA you received.

It sounds as though the job centre have not applied the information from your Job A P45 onto their system (this may be because you didn't hand it to them the first day the claim was made, it may be because they simply didn't do it).

I think that is what has happened. The job centre P45 only shows the JSA I received, no sign of Job A income I had already paid tax on this tax year. The job centre got my job A P45 at my initial interview (I started the claim online). I had a delay with them with them sorting out my claim payments (their fault!) so that doesn't surprise me at all!

I'll try to calculate it once I have the actual P45 figures in front of me. Rough numbers say I'll have overpaid tax by ~£60. Not a huge amount but I'd rather have it sooner than later if that is the case.

Thanks for your help!