Have I overpaid tax?

Giggs_11

Hi guys,

Not sure if this is the right forum - move if not appropriate.

I started my first job around November time, and I was given a P45 or something with the tax code 747L. However from November 2011 to April 2012 I paid around £20 tax per week, and when my P60 came through in April 2012 it said I had earned £3300 and paid £230 tax.

Am I eligible for a tax refund? Seeing as I didn't earn over £7400 I shouldn't of paid any tax? I was given a new tax code in April (808L or something) and I haven't paid any tax since April because I haven't earned enough yet, which seems right and that should of been the case for my first 5 months or so working? (though I am still paying NI tax).

I'm young and pretty new to this whole tax business so any help would be appreciated! Thanks

P.S I was on JSA for a few months and around £400 was taxable, however I think its a separate issue.

jem16

Giggs_11 wrote: »

I started my first job around November time, and I was given a P45 or something with the tax code 747L.

A P45 is for leaving a job not starting one.

Was it a P46 you were given by the employer to complete?

However from November 2011 to April 2012 I paid around £20 tax per week, and when my P60 came through in April 2012 it said I had earned £3300 and paid £230 tax.

That wouldn't make any sense on a 747L tax code. Was there a Mth/Wk 1 or NonCumul after the tax code? What was the tax code on the P60 - make sure you look and see if there is anything after the 747L.

Am I eligible for a tax refund? Seeing as I didn't earn over £7400 I shouldn't of paid any tax?

Provided that's all your income for the tax year then yes.

I was given a new tax code in April (808L or something) and I haven't paid any tax since April because I haven't earned enough yet, which seems right and that should of been the case for my first 5 months or so working? (though I am still paying NI tax).

Tax doesn't work like that. Your personal allowance of £8105 is split over 12 months and you get a bit each month. If you earn less than £675.42 each month you will not pay tax.

How much do you earn each month?

P.S I was on JSA for a few months and around £400 was taxable, however I think its a separate issue.

It's not. JSA is taxable and counts towards your total income. However if the JSA of £400 and the job income of £3300 is your total income for the whole of tax year 2011/12, you would still be due a refund.

Giggs_11

jem16 wrote: »

A P45 is for leaving a job not starting one.

Was it a P46 you were given by the employer to complete?



That wouldn't make any sense on a 747L tax code. Was there a Mth/Wk 1 or NonCumul after the tax code? What was the tax code on the P60 - make sure you look and see if there is anything after the 747L.



Provided that's all your income for the tax year then yes.



Tax doesn't work like that. Your personal allowance of £8105 is split over 12 months and you get a bit each month. If you earn less than £675.42 each month you will not pay tax.

How much do you earn each month?



It's not. JSA is taxable and counts towards your total income. However if the JSA of £400 and the job income of £3300 is your total income for the whole of tax year 2011/12, you would still be due a refund.

Point 1: Not sure if it was a P46 could of been, I work for an agency and they said they would deal with it. I have around 3 P45 forms and one P60.

Point 2: On the P60 it says Tax code: 747L X

Point 3: When I work 5 days a week I earn roughly £250 a week

Thanks

jem16

Giggs_11 wrote: »

Point 1: Not sure if it was a P46 could of been, I work for an agency and they said they would deal with it. I have around 3 P45 forms and one P60.

So if you have 3 P45s, have you had more than one job? If so what did you earn in each job and what did you do with each P45?

Point 2: On the P60 it says Tax code: 747L X

That's the emergency tax code and you would be taxed on each month separately without looking at the totals for the year.

Point 3: When I work 5 days a week I earn roughly £250 a week

Thanks

Then you should be paying tax. Anything over £155.87pw is taxable unless you earn a lot less in other months. Is there anything after your 808L tax code?

Giggs_11

I've have the same job but its ended and then I've gone back to it like a month later, that's why I have 3 P45's.

And I RARELY work 5 days a week, on average I earn around £400 a month but even so I haven't earned £7470 so why would I need to pay tax yet?

And my other tax code is 810L. That's all it says

bargainbetty

Your tax contributions are based on your total earnings from every source during a tax year. Get all the records together, and call the tax office. They will be able to tell you, and if you are due a rebate they will give you it too.

jem16

Giggs_11 wrote: »

I've have the same job but its ended and then I've gone back to it like a month later, that's why I have 3 P45's.

Then you should be passing on the P45 each time which would see your tax working out correctly. Did you do this?

And I RARELY work 5 days a week, on average I earn around £400 a month but even so I haven't earned £7470 so why would I need to pay tax yet?

As I explained earlier, you don't pay no tax until you reach the personal allowance and then suddenly start paying tax. Each month you have a tax free allowance of £675.42. As this is the 4th month of the tax year, you would not be taxed if your total earnings so far were less than £2701.68. With a cumulative tax code it looks at the whole tax year and not each month in isolation. With a non cumulative tax code like the one you were on last year you would have paid tax on the month you earned £1000.

And my other tax code is 810L. That's all it says

Which is fine as it's a cumulative tax code so will adjust and keep your tax correct over the whole year. Just make sure if it ends and you get a P45 that you hand it over to the new job. That way your tax will stay correct.

As to a possible rebate from last year, what did you earn from all 3 jobs plus your JSA?