Tax Code - No P45

MagicCats

I'm seeking some advice on my tax code if someone would be kind enough to assist.

Basically I've been at Uni as permitted work whilst claiming Incapacity Benefit. I also receive a military invaliding pension and war pension which are tax free. I'm now ready to return to work, well try at least! and have been offered and accepted a position.

I did not disclose my illness as I do not believe it will now impact on my capability, and the online advice guides appear to be of the opinion that if it won't impact don't mention it. Also it's illegal for employers to ask about illness now?

So all was well until I realised I'll have to fill in a P46. It only gives three options and none completely relate to my situation. So I'm now very worried that not only will I have to explain things to my employer, HMRC will mess up my tax code.

Any help will be much appreciated.

Sharon87

Just tick the most appropriate box. If your tax code isn't right, it's only 5 months till the end of the tax year, when you can get a refund of overpaid tax, or owe them money, which isn't so good!

Isn't there a box you can tick where it says you've had taxable income since 5th April? Or something like that, tick that one, HMRC should sort it out if they know to look at your records.

MagicCats

Thanks Sharon,

It's more the implications of ticking a box that could alert them to my claiming of benefit. I've looked into health questions, and if I have interpreted the Equality Act 2010 correctly an employer cannot ask about health, disability etc during applications, or interview.

My potential employer did....... I didn't lie, rather stated I had no condition that I felt would impact on my role. It appears they can ask questions during the offer to full employment transition but these are only to ensure that you're not applying for a role you couldn't possibly undertake e.g. colour blind electrician, or if they have to adapt things for you.

I guess it will all come together on Monday, or unravel very badly.

McKneff

The HMRC sends a code to your employer, they do not tell them how the code is worked out, only you receive that information when you get your notice of coding.

To be honest, I think you are over thinking.

I always find it bettr to be honest with new employers, you just saying your condition won't impact your employment is fine but your new employer may think differently.

We had someone start a job working with concrete products, he ommitted to tell us that he had mild asthma, thinking it wouldnt impact on the job, it did, badly, he was hospitalised for over a week,
because he was ignorant of the affects of the chemicals etc in the proces.

MagicCats

McKneff wrote: »

The HMRC sends a code to your employer, they do not tell them how the code is worked out, only you receive that information when you get your notice of coding.

To be honest, I think you are over thinking.

I always find it bettr to be honest with new employers, you just saying your condition won't impact your employment is fine but your new employer may think differently.

We had someone start a job working with concrete products, he ommitted to tell us that he had mild asthma, thinking it wouldnt impact on the job, it did, badly, he was hospitalised for over a week,
because he was ignorant of the affects of the chemicals etc in the proces.

I think you're right, I am over thinking it!

I've decided to disclose that I have a disability with the employer when I start Monday. I can use the equal opportunities form to broach the subject. One thing I'm not is a liar, or deceptive; just don't want my chances ruined.

McKneff

I'm amazed that Invalidity payments and war pensions are not taxable. Its a new one to me.

Good luck by the way.

MagicCats

Incapacity etc are taxable I believe. War pensions once awarded are tax free, they also make your service pension tax free. Benefits are a strange game. I just want to be back earning contributing to society.

McKneff

Go for it, It's self respect too eh.

Respect...............

Regards

Annie, ha, bet you thought I was a fella, most do lol

PotatoPotato

Whatever box you decide to pick, eg: if you pick box A. You will get the full personal allowance. 810L (if you are under the age of 65)

Then you can always phone up the tax office a month later (or whenever they receive your p46) and you can tell them that you still get Incapacity Benefit and they will issue a new code out.

Likewise: pick box B and your new job will be placed on a Basic Rate code (BR). 20% and then you can call up the tax office and explain you are on Incapacity Benefit and your expected income for the remaining few months in this new job would be.. eg: £xxx.xx?
Then a new code would be issued.

The employer does not know what is in your code and shouldnt ask you anyway.

P.S with box B, you can wait till end of the tax year and get a tax refund providing the tax office has all the details for the Incapacity Benefit and a P14 from your new job.

I thought I would share that info with you but good luck on Monday with your choice of being honest.