The tax code "0T" & how to put things right.?

Nine_Lives

I know some of you have a fantastic memory so some will be familiar with some background on this situation. And so the story goes...

My sister was at college & did the odd day here & there at a local nursery. By odd day here & there, it was only really the odd day in between terms.
While still at college, my dad died & once the pension paperwork was sorted, my sister turned out to be eligible for pension payments, which she got at just shy of £200 per month.

A couple months ago she finishes college. She informs the pension folk of this so that payments can stop.

Where she was working weren't offering her full time, so she looked elsewhere & got a more permanent position in another nursery. It wasn't necessarily a Mon-Fri position, so as such she asked the first place if she could stay on there as well. When they found out she had got a position elsewhere, my sister said they instantly became "funny" with her. Don't forget, she'd asked them for full time but they had nothing for her than the odd scattered day. Why would anyone pass up full time for that? But that's by-the-by.

They offered her no more days & she told the second place she could work there fully whenever required. This new employer required paperwork from the old employer, but the old employer was again being difficult - not returning phone calls, emails & generally delaying things.

I do remember a P46 being filled out.

My sister got paid, but no payslip. She got paid again for month 2 (August) & i told her that she really needs to enquire about a payslip as she didn't think she'd been paid a great deal for the days she'd worked.

She gets her payslip & it states her tax code is "0T".

I believe this means she's used her allowance, but that is nonsense. As i say, she only got shy of £200pm with pension payments. As for working at the other place, i don't think she has done since April & she's only just started working for this new employer.

Short of it is - she's barely earned anything this tax year.


So, how does she rectify this & get an accurate tax code?

xylophone

http://taxaid.org.uk/situations/employee/form-p46
http://www.hmrc.gov.uk/incometax/emergency-code.htm

How to get on to the correct code - and get a tax refund
Once HMRC has details of your previous income and tax paid for the tax year, they send your employer (and you) your full (correct) tax code. Your employer will deduct the correct tax in future and refund any overpaid tax. That's why it's very important that you give HMRC any information they ask you for.
Getting a refund at the end of the tax year
If you think you've paid too much tax because you've been taxed on an emergency code you should claim a refund by contacting HMRC. You'll need to provide them with a form P60.
Find out more about claiming a refund
Contact HMRC

Savvy_Sue

If the first company are no longer giving her hours but have not yet given her a P45, then she should write and tender her resignation. this can be quite simple: "Since you have not offered any hours since date I would like to offer my resignation with immediate effect. Please pay the X hours leave I accrued prior to date, and send my P45 as soon as possible."

If she wants to get a reference from them then a line saying "I have enjoyed working for the XYZ Nursery and hope that it continues to be successful" or similar could be useful.

She does need to contact HMRC as well, as above, but the lack of formal resignation is probably partly responsible. Also hopefully she knows how much holiday she is owed: if she was on irregular hours then it accrues at the rate of 12.07% right up to the last shift.

jem16

K_P83 wrote: »

I do remember a P46 being filled out.

What box was ticked on the P46?

Nine_Lives

Thanks for the replies guys.

As for the resignation - no i don't think there was a formal resignation. There was no paperwork between my sister & the company at all throughout - no contract, no nothing.

Would she be owed any holiday pay? She was only ever there to work through the college holidays really - "bank staff" i think is what she called it. I doubt she'd be interested in the hassle of pursuing this anyway. She's just happy to have a full time (ish) job with a happy working atmosphere.

I'm pretty sure it was box "C" that was ticked on the P46.

So the short of it is, she needs to contact the tax folk (from the link above - it's 0845 300 0627) & tell them that code 0T is incorrect for her.

I imagine they'll then ask her to prove it, by which she sends off her P60 i guess?



Are the tax place open weekends? If so then she can call tomorrow.

jem16

K_P83 wrote: »

I'm pretty sure it was box "C" that was ticked on the P46.

0T wouldn't normally be used if Box C was ticked unless your sister did not complete Section 1. Either that or the P46 has not been used by the employer.

http://www.hmrc.gov.uk/forms/p46exemptonline.pdf

So the short of it is, she needs to contact the tax folk (from the link above - it's 0845 300 0627) & tell them that code 0T is incorrect for her.

Remind us how the tax codes were apportioned for your sister's pension and work?

What you need to say to HMRC is that this current job is now her main job and that she is not receiving a pension now. Ask them to assign her main tax code to the job.

However until all the details are through regarding earnings from the previous job and the pension, it is likely that they will use a MTh1 code for her.

I imagine they'll then ask her to prove it, by which she sends off her P60 i guess?

P60 is for last year which won't help this year. She needs the P45 from the other job which is why it's probably best to resign as she has no intention of working there again.

They also need the details from the pension scheme. Normally they send details straight to HMRC so your sister should ask if they have received these details.

Are the tax place open weekends? If so then she can call tomorrow.

Yes they are open tomorrow.

Nine_Lives

I think this was the last update on tax coding she had: http://forums.moneysavingexpert.com/showpost.php?p=51382019&postcount=1

I'll pass on the information to her & let her know she needs to be tying up some of these loose ends. Thanks.

Nine_Lives

Oh, regarding the resignation....

Who would she send the letter to? The question may not be as daft as it sounds...

The nursery was a couple mile up the road, but whenever she asked about pay, it was always "head office" based elsewhere. I think she asked about a P45 recently & was again told she needs to see head office.

So if it was you, would you hand in your resignation note to your line manager there, or be asking for head office's address?

jem16

K_P83 wrote: »

I think this was the last update on tax coding she had: http://forums.moneysavingexpert.com/showpost.php?p=51382019&postcount=1

So her tax code was split between the pension and the job. Ask HMRC to unsplit the tax code and assign the full tax code to the new job. Her previous job could be given BR meanwhile.

K_P83 wrote: »

So if it was you, would you hand in your resignation note to your line manager there, or be asking for head office's address?

I'd probably ask for the head office address as they will probably be the ones who issue the P45 anyway.

Savvy_Sue

All employees are entitled to holiday pay. Doesn't matter if they only work for one day: they will start accruing holiday pay. How the nursery deals with this I'm not sure, when I ran a similar payroll (lots of students working EITHER holidays OR termtime but not both) I just kept a note of what hours they'd worked and paid them for 12.07% of that at the end of each spell of work.

If she's got a note of how many hours she worked, then I'd work out 12.07% of that and ask for that in the letter of resignation, which I would send to head office. "Since I worked for X hours, I believe I am entitled to Y amount as holiday pay and I would be glad if this could be paid before my P45 is issued" will do the job. That calculation is 5 minutes work, at most, if she doesn't want to pursue it if they don't play ball is up to her ...

And yes, I'd send it to head office. Is that address not on the P60?

Has she worked there in this tax year, out of interest?

Nine_Lives

I don't THINK she's worked there in this tax year, but i'm not 100% sure.

She's contacted payroll regarding her P45 via email, but has has no response since the email was sent at the weekend. She got their phone number tonight after hours so i think that is the next avenue.



She called the tax office on Saturday, but didn't get through. I think she called about 11:30-12:00.

She called again today but perhaps left it too late. What are their starting & finishing times?

She can't fully calculate her hours, as she doesn't have all her payslips (sometimes they never gave her a payslip & she never chased them for one - so she has some, but not all).