Wrong tax code (BR) since I changed jobs!

gundo

Started at current job and organisation Jan 04. When I started I didn't have my P45. Never actually handed it in. Applying for mortgages recently and I noticed that I'm paying way more tax than I should do.

I've been on tax code BR for whole of the time from mid Jan 04 until now!

In my previous job I was on 461L (standard one for 03-04 tax year I believe).

Some 3 years previous I had worked part-time for a few hours a week in the evenings at the organisation where I work now, this was as a second job and my primary job paid far more as it was full time. Hence when I started here and they didn't know what my tax code was they just set it as BR as that's what it had been when I was working here before as a part-time evening classes lecturer.

How do I get this money back! I'm panicking a bit. I contacted payroll here and gave them my P45 which I found at home (it arrived several weeks after I'd started here and I forgot all about it - it's my stupid fault I know) and they said not to worry they will send a letter to the IR with my P45 and the IR will sort it and send me a cheque. Is this true?

Should I sit back and wait for my refund or is there anything else I need to do?

Apparently I was too late to change the code for 04-05 but I should get a correct code for 05-06.

Debt_Free_Chick

Should I sit back and wait for my refund or is there anything else I need to do?

Contact your local tax office. This might speed things up a bit and the tax office may need some information from you, that your payroll can't provide. Always best to take control in these situations and don't just leave it to others.

You are more likely to get the tax refund in your pay, once your code is correct.

HTH

System

If the employer automatically set your code at BR and you have not yet received a coding notice for 04/05 or 05/06 for that employment then I'm wondering if the Inland Revenue even know you are working for that employer ie has your employer given you a P46 to complete to send to their tax office. It's worth checking out.

With regard to your refund just send your P60 for 2004/05 to your tax office when you get it and ask them to review the tax year for you. It's too late in this current tax year to get a refund in your pay as the year is practically over and it's unlikely an amended code would get to your employer in time for the last payroll run of the year. If you are owed any money you would normally get the refund anyway but sending the P60 in will mean you won't have to wait until they come to your name on their lists.

Paul_Varjak

When you started your new job your new employer should have completed a P46 form and got you to sign it before paying you any money as you did not supply them with a P45.

It seems they did not do this and that explains why you are still on a BR code - the Inland Revenue do not know about your current employment. That is why you have seemingly not had Notices of Coding for 2003-2004 and 2004-2005.

You don't say how along ago you handed in your P45 to your new employer. Anyway, I would notify your local tax office and send in a photocopy of last year's P60 and ask for a refund. Hopefully, they will repay immediately rather than refunding via your tax code.

When you receive a P60 for 2004-2005 I would photocopy that as well and send to your tax office asking for another refund, if things have not been sorted out by the time you receive it.

However, you may prefer to wait until you receive the P60 for 2004-2005 and send photocopies of both P60s to your Tax Office at the same time.

gundo

Thanks everyone for your excellent advice. I rang the local tax office and you're right they didn't have details of my current employment. They said get a P46 sent in and also when I get my P60 for 04-05 to send it in with the P60 for 03-04 with a covering letter explaining I'm due a refund due to incorrect tax coding. I spoke to payroll here again and they confirmed that they'd sent in a P46 when I saw them on Monday that's what I'd signed apparently, they also sent in info on what I'd been paid and what tax I'd paid so as to make it easier for the IR to sort a refund.

I'll probably take the "belt and braces" approach and send in my P60's as well when I get those.

All your advice has obviously been spot on as it matches exactly what the IR told me to do.

Once again, ta very much everyone.

Yoshii

I was just about to say what happened to one of my chefs ,he was on BR for approx 1.5 years ,after the I Revenue thought he had another job,to cut a long story short ,he filled in a P46 , sent in a copy of P60 and a very simple cover letter and this was sorted out within 3 weeks.

sometimes there is a silver linig

Yoshii

gundo

Yoshii wrote:

I was just about to say what happened to one of my chefs ,he was on BR for approx 1.5 years ,after the I Revenue thought he had another job,to cut a long story short ,he filled in a P46 , sent in a copy of P60 and a very simple cover letter and this was sorted out within 3 weeks.

sometimes there is a silver linig

Yoshii

Woo-hoo!

Hope mines as quick. Could do with the cash as you'll see if you look at my posting in the house buying forum!

Bossyboots

It took about three weeks for my mum as well when I pointed out that she had been on the wrong personal allowance for the year she turned 65 and the subsequent year.

Patr100

I need to claim for 2003-4 - Do the IL accept photocopies of P60s etc or do you always have to send in the original?

Bossyboots

I didn't send in anything, just a letter. Your employer sends a copy of the P60 so I wouldn't have thought you need to send another one but do include the company details and codes that are on it.

Kazza242

When I started my current job, I was also put on a BR tax code, even though I supplied my employer with all the paperwork they needed.

I notified my employer of this, they asked me to fill out some forms and then I got a partial refund of tax in my subsequent monthly wages.

When I got my P60 for that year, I sent the original copy (since the Inland Revenue do NOT accept photocopies) to them along with a letter:

Dear sir/madam,

When I started my job with my current employer, ************ on the [day] [Month] [Year], I was taxed at basic rate (BR) for [however long].

Please could you review the tax year ending the 5th April [Year]. Please find my P60 for the tax year ending 5th April [Year] enclosed.

I would be most grateful if you could please return my P60 End of Year Certificate(s).

Many thanks for your assistance.

****************************************************
I received my rebate within 2 weeks with 3% interest added to it too .

Advice for others
If you didn't start your new job at the start of the tax year, e.g. you started in June, then the Inland Revenue will want to know if you were earning any income from April 6 of that year to the date of your first day of employment. If you were not working i.e. looking for work or getting benefits etc, then put this in your letter, otherwise your rebate will be delayed.

Remember: Send the original copy of your P60, as the Inland Revenue will NOT accept photocopies. They will return all of your original documents.