Week 1/Month 1 Tax Code issued by HMRC after closing JSA Claim

DollyDee_2

Hi there

My fixed term contract employment ended on 14th April 2012. I subsequently claimed contribution based JSA in May 2012 which ended in November 2012 and I signed off. HMRC issued me with a P45 with an "X" in the box for week 1/month 1. (Box 6 on P45).

I have found a job and start on 28th February 2013. It's only 2 days per week so I won't actually be earning enough (or have earned enough over the year) to pay tax.

Should I still speak to HMRC & ask for a cumulative Tax Code?

I don't know if this is odd but they have also put week number 35 in box 7 which states "Complete only if Tax Code is cumulative. If there is an "X" at Box 6 there will be no entries here".

Any advice would be appreciated.

Dazed_and_confused

Are you sure you've got this right - HMRC themselves hardly ever issue P45s - are you sure you don't mena DSS/DWP have issued you with a P45?

Providing you get yourself on what is commonly known as the "emergency" tax code (810L) you won't pay any tax if you are earning £155/week or less. If you have concerns over your P45 the simplest thing to do would be to complete a P46 and if you fill this in confirming this is your only/main job then you'll be ok.

Do nothing and your employer will probably allocate BR code, which is far worse in your situation than "emergency" tax code as you would pay 20% on everything you earn.

DollyDee_2

Beg pardon - I had filed Part 1A of the P45 (my copy), therefore, I was only looking at Parts 2 & 3 when I posted.

The P45 Part 1A does state that it was issued by Jobcentre Plus. Apologies for the confusion caused.

I will give Parts 2 & 3 to my new employer. The Code is 810L Week 1/Month 1.

I just wondered if I ought to sort out the Week 1/Cumulative issue now even though it does not affect anything at the moment.

On a separate note, when I claimed JSA I supplied them with Parts 2 & 3 of the P45 issued by my ex-employer. They only kept Part 2 & gave me back Part 3. The P45 issued by Jobcentre Plus only covers the 6 months JSA paid, they didn't add on my earnings from my ex-employer. Just wondered why they did it that way when I had given them the first P45.

Sorry if I am being "fick", this is only the second time I have claimed a benefit of any description in 40 years - 2 lots of contribution based JSA. The first time I claimed/signed off (2009/2010) the same thing happened. I started a full-time job in November 2009 so I wrote & asked them to issue a cumulative tax code which they did in Feb 2010 but, probably due to a timing issue being monthly paid, I ended up underpaying £125 tax.

Thanks

chrisbur

Hand in parts 2 and 3 to your new employer they will then advise the tax office that you are working there now and the tax office should then send your new employer details of correct tax code and any pay and tax from previous employer and jobcentre. If you paid any tax in your old employment there will proberbly be some rebate due to you.

Jobcentre should not have returned part 3 of your P45 this may well be why you ended up on a week 1 code.

If you want to hurry things along you could ring the tax office, it may help. But if all is not sorted by end of tax year and there was any tax paid you will have to claim it back from the tax office.