Overpaid income tax

jamesallen

Hi all.

I left my last job in late December, and started a new one in early Jan. I should not pay income tax, because I'm on a gap year and thankfully the tax year falls such that I earn under the personal allowance.

My last employer handled this fine until my last payslip (which came after my P45 was given to me) but then paid PAYE on that. Previously, my tax code was "747L Cumulative", but on this last payslip it was "0T/1".

The HMRC website just tells me to contact HMRC, but I've heard this can be a bit of a nightmare. Therefore it would be nice if someone who knows about this could point me in the direction of the correct form. I understand that the R40 is just for reclaiming overpaid tax on interest, so wouldn't be suitable here?

dori2o

jamesallen wrote: »

Hi all.

I left my last job in late December, and started a new one in early Jan. I should not pay income tax, because I'm on a gap year and thankfully the tax year falls such that I earn under the personal allowance.

My last employer handled this fine until my last payslip (which came after my P45 was given to me) but then paid PAYE on that. Previously, my tax code was "747L Cumulative", but on this last payslip it was "0T/1".

The HMRC website just tells me to contact HMRC, but I've heard this can be a bit of a nightmare. Therefore it would be nice if someone who knows about this could point me in the direction of the correct form. I understand that the R40 is just for reclaiming overpaid tax on interest, so wouldn't be suitable here?

You have received a payment after leaviung the employer and having been issued with a P45. This could be for a number of reasons, holiday pay, PILON, or just late pay paid after the P45 was issued.

The employer has an abligation to tax this payment using the 0T tax code on a non cumulatrive basis, so in this respect the emp[loyer has done exactly the right thing.

The employer will report this payment to HMRC on their P14 submission (the carbon copy of the P60). When HMRC have all the P14's from all employers you have worked for between 06/04/2011 and 05/04/2012 they will be able to refund you any tax that you have overpaid.

There is nothing you need to do immediately, but ensure you pass on your P45 to the new employer.

jamesallen

dori2o wrote: »

You have received a payment after leaviung the employer and having been issued with a P45. This could be for a number of reasons, holiday pay, PILON, or just late pay paid after the P45 was issued.

The employer has an abligation to tax this payment using the 0T tax code on a non cumulatrive basis, so in this respect the emp[loyer has done exactly the right thing.

The employer will report this payment to HMRC on their P14 submission (the carbon copy of the P60). When HMRC have all the P14's from all employers you have worked for between 06/04/2011 and 05/04/2012 they will be able to refund you any tax that you have overpaid.

There is nothing you need to do immediately, but ensure you pass on your P45 to the new employer.

Thanks for the reply. So you think I should wait until my April payslip and if it isn't refunded on that I should contact HMRC?

dori2o

jamesallen wrote: »

Thanks for the reply. So you think I should wait until my April payslip and if it isn't refunded on that I should contact HMRC?

It can't now be refunded directly by the employer as the tax year will end on 5th April and your employer cannot cross over/underpayments from one year to the next.

HMRC will refund you directly when they receive all the necessary information from your present and previous employers and details of any JSA/ESA you may have claimed during 2011/12.

Once you get you P60 from your current employer, contact HMRC and ask if they have allthe information needed to complete the assessment. If they do they will do it whilst you are on the phone. If they don't they will advise what is missing and you then have the option of sending this to them, or waiting for them to receive it.

jamesallen

dori2o wrote: »

It can't now be refunded directly by the employer as the tax year will end on 5th April and your employer cannot cross over/underpayments from one year to the next.

HMRC will refund you directly when they receive all the necessary information from your present and previous employers and details of any JSA/ESA you may have claimed during 2011/12.

Once you get you P60 from your current employer, contact HMRC and ask if they have allthe information needed to complete the assessment. If they do they will do it whilst you are on the phone. If they don't they will advise what is missing and you then have the option of sending this to them, or waiting for them to receive it.

Ah OK. Cheers :beer: