How does an emergency tax repayment appear on a wage slip?

SandA

Does it appear as part of net pay or does it have a section stating that it is just a tax refund? Ive had such a pickle with housing benefit due to my OH being put on an emergency tax code, since they use his net pay. He got underpaid by about £45 last month because of his emergency tax.
HMRC have said it will be refunded but I just don't know how it is going to appear on his slip. Does anyone know for sure? I am presuming it will just be part of his pay for that month and his 'normal' pay will be paid in June

Thanks

mysk_girl

If its being refunded through his payslip, you will see either less tax than normal being taken, or a credit in the "tax deducted" column, depending on whether the refund is more or less than the 'normal' amount of tax.

In other words, it shouldn't appear separately, just calculated into the 'tax due' bit.

SandA

So in terms of given his slip to HB it will just appear he earns more? Just been such a hassle and I have already got an overpayment because they took a long time to sort it out. My overpayment is being paid back by deducting from me but come the end of the month I will of been overpaid again because they think hes earning more and no help again in June because we won't be entitled because of the 'extra' income.

How will they recover the original overpayment since the money they are using to pay it back will appear to be money we werent entitled to because of this tax issue. We won't be entitled in June either due to the tax being paid back, so just wondering how they deal with recoveries with people who arent in receipt of benefit for that period. I believe come the end of June when I hand in his 'proper' wage slip, I should get the money back right? because they have me down as not entitled due to the extra income on Mays slip but when they see the end of June slip it will show his income as less then May?

He sent his p46 in aswell I dont know why this has even happened

thanks for the help

mysk_girl

I have no idea how HB works, I'm afraid. But in terms of the refund, yes, his net pay will be more if the refund is processed through payroll. Sorry...

SandA

My working out was wrong I was adding the tax refund onto 1 weeks wage but obviously its spread over the month so all is not bad

Thanks for your help

Dazed_and_confused

SandA wrote: »

Does it appear as part of net pay or does it have a section stating that it is just a tax refund? Ive had such a pickle with housing benefit due to my OH being put on an emergency tax code, since they use his net pay. He got underpaid by about £45 last month because of his emergency tax.
HMRC have said it will be refunded but I just don't know how it is going to appear on his slip. Does anyone know for sure? I am presuming it will just be part of his pay for that month and his 'normal' pay will be paid in June

Thanks

Are you sure you've got this right - the "emergency" tax code is exactly the same as the tax code most people have (944L at the moment) but it is used on a special basis (each week or months pay is looked at in isolation rather than looking at the year as a whole) and it would be fairly unusual for the emergency code to be used this early in the tax year and even more unusual for there to be any refund due via wages.

When was this extra tax actually deducted, what tax code did the employer use and why do you think the emergency code no longer applies and a refund is due?

SandA

Partner started new job 12th April, tax code 0T. He rang HMRC and they said that he was on emergency tax as they had not received his p45? or p60, and that once this was received it would be rectified within 28 days and tax refunded

Firefox1975

Op

his tax code will change from OT to 944L. When this happens, the next pay slip, will include any refund of tax that is due. it is not a seperate "refund" it is merely added into his tax deduction for the mth. (As it is a refund of tax due it will DECREASE his amount of tax due in the mth, therefore increasing his net take home pay)

Dazed_and_confused

SandA wrote: »

Partner started new job 12th April, tax code 0T. He rang HMRC and they said that he was on emergency tax as they had not received his p45? or p60, and that once this was received it would be rectified within 28 days and tax refunded

0T isn't the emergency code (thought tax people would know that!) but it does explain why there would be some tax due back.

0T is a bit like the BR code often used for second jobs - it usually means 20% tax is deducted and you aren't receiving the benefit of the personal tax allowance.