Monster tax bill on new job started this month

DAE

Hi all,

Just started a new job at the start of this month.

Due to a relocation bonus my total earnings for the month before tax were £3124.45. However, I've just been taxed a wopping £624.80.

My tax code is showing as BR M1, which I believe is an emergency code.

I'll give you some background to my tax situation.

At the start of the 2012/13 tax year last April I was working in my old job. I continued working until approximately mid June, when I was made redundant.

Then I was receiving Jobseekers until November. During this time I secured a graduate job which wasn't due to start until March 2013 (my current job).

In November I went abroad for a few months returning in January. I then received some more Jobseekers until I started this job on March 4th this month.

All in all, I'd estimate that any earnings from my job last year and my 2 stints on jobseekers don't come close to the threshold.

Unfortunately I don't have the P45 from my previous job - I'm usually good with this stuff and have turned my house upside down to no avail. I have both my P45's (the front pages at least) from both my stints on job seekers.

The first says I received £1227.29 and the second says £395.58. From my previous job, I can't have received much over £2500, so I believe I'm under the annual threshold (which I believe is around 8k yes?).

I had meant to fill a P46 for my current employer during this month but been so busy that it completely escaped my mind until I got my pay-slip and subsequent shock today. Is it worth getting this in now, after I've already been paid?

So I believe that this £624.80 tax payment is due back to me, possibly along with tax paid on my old job last year.

Now the tax year is ending so what do I have to do?

Your first pay check in a new job is supposed to be a joyous moment but it's made me really depressed, especially when I see colleagues in the same role as me walking away with up to £800 more. And yep, I know it's largely my own fault for not keeping better checks of my records and keeping my new employer updated.

Thanks in advance for any help or advice. Apologies if my post was a little hard to follow. Tried to make my situation as clear as possible.

jem16

DAE wrote: »

My tax code is showing as BR M1, which I believe is an emergency code.

It's not the emergency code - that's 810L. BR is the code used for 2nd incomes and was also the code used in the absence of a P46 or P45. However that was replaced with 0T so don't know why BR is still being used.

I had meant to fill a P46 for my current employer during this month but been so busy that it completely escaped my mind until I got my pay-slip and subsequent shock today. Is it worth getting this in now, after I've already been paid?

Too late now.

Now the tax year is ending so what do I have to do?

You will need to wait until you get your P60 from your new employer and send that off along with all the appropriate P45s to HMRC and request a refund.

DAE

jem16 wrote: »

It's not the emergency code - that's 810L. BR is the code used for 2nd incomes and was also the code used in the absence of a P46 or P45. However that was replaced with 0T so don't know why BR is still being used.



Too late now.



You will need to wait until you get your P60 from your new employer and send that off along with all the appropriate P45s to HMRC and request a refund.

Thanks for the advice.

If I don't have my P45 from my old job, what do I do?

chrisbur

You are not on emergency tax code you are on the tax code for an employee who does not have a P45 and has not filled in a P46. Well strictly you are on the tax code that used to be used for this, it is now 0T non-cumulative, but as far as you are concerned it has the same result. Had you filled in a P46 your employer would have used the emergency tax code 810L non-cumulative. If you have overpaid tax you will have to reclaim now from HMRC as the tax year has just about finished. Your problem at the moment is that this BR will be used next year untill HMRC gets round to issuing a proper tax code, so suggest you ask your employer if you can fill in a P46 to get on emergency code.

jem16

DAE wrote: »

Thanks for the advice.

If I don't have my P45 from my old job, what do I do?

Did you hand this in when you started JSA? If not you would need to ask your old employer for a statement of earnings.

DAE

chrisbur wrote: »

You are not on emergency tax code you are on the tax code for an employee who does not have a P45 and has not filled in a P46. Well strictly you are on the tax code that used to be used for this, it is now 0T non-cumulative, but as far as you are concerned it has the same result. Had you filled in a P46 your employer would have used the emergency tax code 810L non-cumulative. If you have overpaid tax you will have to reclaim now from HMRC as the tax year has just about finished. Your problem at the moment is that this BR will be used next year untill HMRC gets round to issuing a proper tax code, so suggest you ask your employer if you can fill in a P46 to get on emergency code.

How long does it normally take HMRC to issue a new tax code under the circumstances?

I will try to get a P46 to my employer ASAP.

Also, what is the process for making a claim once I receive my P60? Will they mind that I don't have a P45 from my old employer.

I hear of people getting rebates having not applied for them, so does this sometimes happen automatically (i.e. HMRC will realise they have taxed me too much) or is it all on me to do it? Or will me doing it just facilitate the process and help me get my money quicker?

DAE

jem16 wrote: »

Did you hand this in when you started JSA? If not you would need to ask your old employer for a statement of earnings.

Actually, that might be a good explanation of where it is.

Would they have kept hold of it? Is that normal?

chrisbur

DAE wrote: »

How long does it normally take HMRC to issue a new tax code under the circumstances?

I will try to get a P46 to my employer ASAP.

Also, what is the process for making a claim once I receive my P60? Will they mind that I don't have a P45 from my old employer.

I hear of people getting rebates having not applied for them, so does this sometimes happen automatically (i.e. HMRC will realise they have taxed me too much) or is it all on me to do it? Or will me doing it just facilitate the process and help me get my money quicker?

No idea how long a new tax code will take to issue.

I would give them a ring when you have your P60 and they will advise what to do.

I understand that any tax due back is now done automatically but if I were you I would still get my claim in. Can't hurt and might get the money a bit quicker.

Dazed_and_confused

DAE wrote: »

How long does it normally take HMRC to issue a new tax code under the circumstances?
5 minutes if you phone up and clearly explain clearly what has happened and only have one job
I will try to get a P46 to my employer ASAP.
Not sure you need to bother doing this and asking HMRC to issue a code

Also, what is the process for making a claim once I receive my P60? Will they mind that I don't have a P45 from my old employer.
Send a letter outlining what you have done during the (tax) year making sure you cover any periods not working or claiming JSA and make sure you include your P60 and part 1A of all your P45's.

I hear of people getting rebates having not applied for them, so does this sometimes happen automatically (i.e. HMRC will realise they have taxed me too much) or is it all on me to do it? Or will me doing it just facilitate the process and help me get my money quicker?

You will get it back automatically but sending your P60 will mean you are likely to get any repayment quicker

Dazed_and_confused

DAE wrote: »

Actually, that might be a good explanation of where it is.

Would they have kept hold of it? Is that normal?

DWP are not payroll/tax experts so they may have it but you should still have part 1A of the P45 as this is your copy and should not be given to a new employer or DWP

DAE

Dazed_and_confused wrote: »

DWP are not payroll/tax experts so they may have it but you should still have part 1A of the P45 as this is your copy and should not be given to a new employer or DWP

Unfortunately I don't seem to have it.

I have turned my house upside down and searched in all my usual document places.

No idea where it's gone. I suppose it's plausible it may have been accidentally thrown out.

So what should I do with regards to HMRC on this? I have a final pay slip for a £300 goodwill payment on redundancy which indeed shows that I received £3235.77 taxable pay for that job. So I now know for a fact I haven't gone past the threshold and can sort of prove it, albeit without a P45 for that job.

You would think in this day and age, a simple search of my NI number on their system would flag up exactly what tax I'd paid.

Tax doesn't have to be taxing. Yeah... right.