Tax Code 0T

starrybee

For some reason my tax code on my last p45 (from job centre) is 0T - from what I can deduce on the internet this isn't the correct code for me and is usually used when people fill in a p46 - and then it gets sorted out a month later.

Does the same principal apply when it's on the p45 - ie will I get overtaxed this month, then it'll get worked out correctly next month? Or am I better off filling in the p46 now to save hassle further down the road?


Thanks

Edit: Thinking about it I'm not sure I've even posted on the right board. I'm so hopeless!

chrisbur

starrybee wrote: »

For some reason my tax code on my last p45 (from job centre) is 0T - from what I can deduce on the internet this isn't the correct code for me and is usually used when people fill in a p46 - and then it gets sorted out a month later.

Does the same principal apply when it's on the p45 - ie will I get overtaxed this month, then it'll get worked out correctly next month? Or am I better off filling in the p46 now to save hassle further down the road?

I hope this question makes sense, I am clueless about things like this.

Thanks

Edit: Thinking about it I'm not sure I've even posted on the right board. I'm so hopeless!

Not quite it is the tax code that is used when a new employee does not fill in a P46. If you hand in the P45 you will be taxed as if you had no tax allowance and assuming that this is incorrect your tax will eventually be corrected when HMRC issue a tax code and pay/tax details to your employer. I would guess that this may take longer than one month but do not really know. If you fill in a P46 and select either option A or B depending on your circumstances then your new employer can use the emergency tax code untill they hear from HMRC. Assuming that 0T is wrong and you should be getting the basic tax allowance then your tax will not be far wrong, but if 0T is your correct code then you will have some underdeducted tax to pay.

starrybee

chrisbur wrote: »

Not quite it is the tax code that is used when a new employee does not fill in a P46. If you hand in the P45 you will be taxed as if you had no tax allowance and assuming that this is incorrect your tax will eventually be corrected when HMRC issue a tax code and pay/tax details to your employer. I would guess that this may take longer than one month but do not really know. If you fill in a P46 and select either option A or B depending on your circumstances then your new employer can use the emergency tax code untill they hear from HMRC. Assuming that 0T is wrong and you should be getting the basic tax allowance then your tax will not be far wrong, but if 0T is your correct code then you will have some underdeducted tax to pay.

Okay, thank you 0T is definitely wrong, I should be on basic allowance.

Is the length of time it takes for HMRC to process it the same regardless of whether it's a p45 or 46?

chrisbur

starrybee wrote: »

Okay, thank you 0T is definitely wrong, I should be on basic allowance.

Is the length of time it takes for HMRC to process it the same regardless of whether it's a p45 or 46?

Sorry no idea on that, but even if the P46 takes longer you are going to be paying less tax while you wait.

Horseunderwater

Better by far to fill in the P46 as that gives new employer the authority to operate the basic allowance on a month/week1 basis so your tax should be nearer and you'll get more or less what you should do in your pay. If this is your only job choose that option.