Tax refund - New system?

bf90s

Hello all,

Due to starting a new job mid tax year (sept time) I was put on the tax code 'BR'. I've earned well under the personal allowance, and have nothing else taxable for the previous duration of the tax year, JSA etc. I should be in line for a tax refund, and phoning HMRC I was told the system is now automatic, and my employer would submit the relevant information for me, meaning I do not need to do anything. However, two friends of mine told me that only last month, they simply phoned HMRC, quoted their NI# and was told that they were being refunded for overpaid tax. Has the system changed now or am I misinformed?
This is the first time I'll be claiming tax refunds, so I'm new to the whole process. Do I actually need to do anything, hopefully I receive my P60 form soon to confirm I'm due a refund. Forgive me if I'm stating the obvious here!

Thanks

CLAPTON

too late now, but you never should have been put on BR unless you have two jobs at the same time.

has your code for 2014-15 been amended to 1000L ?

I'm afraid I don't know if the HMRC system will automatically provide a refund but I'ld phone again and see what a different person tells you.

bf90s

Ok, I'll try again when the tax year has ended and see what someone else says! No, I'll check on my next paycheck if its been amended, which is when I'll recieve my P60, and as far as I am aware it was BR because I started mid way through the year.

getmore4less

what happened to your p45/p46 you handed to the employer that should have been processed and got you on the correct code.

bf90s

Never had one, so I didn't have one to give to my employer nor did they ask for one!

CLAPTON

had you been working prior to the new job?

why didn't you have a P45 when you left

when you joined the new company you should either give a P45 or fill in a P46

what sort of company do you work for?

a BR code should only be given if you have two incomes at the same time

bf90s

Nope, I'm assuming now I should of filled in a P46, I wasn't asked to. I work for a supermarket chain. Just noticed now my tax code is BR W1. Sorry if this has ruined the theory so far! I'm assuming my tax code can be sorted. I'm more concerned with how/when I'll get to refund my overpaid tax!

Skint_yet_Again

bf90s wrote: »

Hello all,

Due to starting a new job mid tax year (sept time) I was put on the tax code 'BR'. I've earned well under the personal allowance, and have nothing else taxable for the previous duration of the tax year, JSA etc. I should be in line for a tax refund, and phoning HMRC I was told the system is now automatic, and my employer would submit the relevant information for me, meaning I do not need to do anything. However, two friends of mine told me that only last month, they simply phoned HMRC, quoted their NI# and was told that they were being refunded for overpaid tax. Has the system changed now or am I misinformed?
This is the first time I'll be claiming tax refunds, so I'm new to the whole process. Do I actually need to do anything, hopefully I receive my P60 form soon to confirm I'm due a refund. Forgive me if I'm stating the obvious here!

Thanks

When you start a new employment you should hand in your previous P45. If you do not have a P45 the new employer should ask for a starter checklist which has replaced a P46

http://www.hmrc.gov.uk/working/forms/paye-forms.htm

If payroll do not have a P45 or starter checklist they have to use code BR/x as they do not know if you have another job or other income.

If your friends phoned HMRC last month they would have had their tax codes amended for the current tax year 2013-14.
HMRC send this to the employer, who would then calculate a repayment and put it in their wages when they use the tax code for the first time.

As the tax year ends on 5 April it looks like you phoned them too late for this to happen in your case.

The employer will send HMRC your P60 details and their system will automatically review for a repayment later in the year - it may speed things up if you send in your own P60 to HMRC which you should receive from your employer. Attach a cover letter confirming no other income in 2013-14 and write "repayment claim" in red at the top.

Hope that helps

bf90s

That's probably hit the nail on the head, thanks a lot for the reply

chrisbur

Skint_yet_Again wrote: »

When you start a new employment you should hand in your previous P45. If you do not have a P45 the new employer should ask for a starter checklist which has replaced a P46

http://www.hmrc.gov.uk/working/forms/paye-forms.htm

If payroll do not have a P45 or starter checklist they have to use code BR/x as they do not know if you have another job or other income.

If your friends phoned HMRC last month they would have had their tax codes amended for the current tax year 2013-14.
HMRC send this to the employer, who would then calculate a repayment and put it in their wages when they use the tax code for the first time.

As the tax year ends on 5 April it looks like you phoned them too late for this to happen in your case.

The employer will send HMRC your P60 details and their system will automatically review for a repayment later in the year - it may speed things up if you send in your own P60 to HMRC which you should receive from your employer. Attach a cover letter confirming no other income in 2013-14 and write "repayment claim" in red at the top.

Hope that helps

One very minor point the code that should have been used if no P45 or checklist is 0T non-cumulative. Makes little difference to most people but was changed a year or two back to reduce the chance of very high earners underpaying on BR tax.

Unfortunately this seems to happen quite often it seems that some payroll departments cannot be bothered to get the details needed from new employees to enable the emergency tax code to be used and just use 0T or in this case BR.