Personal Allowance??

qwertytrewq

If you don't earn over your personal allowance at the end of the tax year, does all the income tax you've paid up to then get refunded in the new tax year? I'm getting taxed to the hilt when I don't think I should be...

Not on emergency code, (810L)

CLAPTON

if you are on a normal taxcode 810L (with no letters like M1, nocum, W1 after it) and your income (earning plus JSA ) will be less than 8105 over the year then you will pay no tax.

maybe explain your situation a little more fully.

McKneff

Lots more details are required.
Any overpaid tax should be refunded through your payroll in this tax year.

If yu find that it isnt and you have overpaid tax then you have to physically claim it in the new tax year.

qwertytrewq

I started working a few months ago. This is my first job since coming off IR Employment Support Allowance. From Sep - April I won't have earned over the 8,105 allowance. I am currently being taxed around £150 per month (not including N/I) Will I get this back?

I am under the impression you only pay tax on income over 8,105, and if I don't earn this I should get all tax back - infact I think I just answered my own question (lol)

But what would happen if from now until April I actually earned £9,000 (overtime etc.)

I'm new to all this, so all comments r appreciated

qwertytrewq

Infact, upon checking my wage slips my Tax code is actually 810L M1.

What does the M1 mean????

qwertytrewq

My employer got my up-to-date P45 though? I'm sort of understanding more of it now. My earnings are no where near 675x2 pcm so I am paying an extremely high amount of tax, correct?

qwertytrewq

In month one I earned £420 and there was no tax or N/I, this is (assuming) because I started mid-way through month and that is only 2 weeks pay

(if this is any help; in a normal month I earn £1,066)

UsetheFORCE

It's a non cumulative tax code.

The best option is to contact your employer and ask for THEIR tax reference then ring HMRC and ask them to send a CUMULATIVE tax code to your current employer.

This will mean that any tax already paid will be refunded in your pay and no further tax will be deducted, assuming you earn under the threshold for this tax year.

Regards

CLAPTON

I'm not very familiar with ESA .. did you get a P45 after coming off ESA?
did you give the P45 to your employer?

in any event best to phone the HMRC and explain your tax code is 810L M1 and that you want it changed to a 'normal' one (i.e. without the M1)

The M1 code men you pay tax on a monthly basis so if your monthly earning are over 8100/12 (675) then you pay tax at 20% on the amount over that.

Once you are a normal code any excess tax will be automatically refunded if this happens before March 2013 payslip.