Tax Code OTX 29 September 2014 at 7:04PM in Cutting tax 5 replies 29.8K views

lrb7691

Good Evening!

I've recently started a new job and have just received my pay slip. My p45 from my previous role only came through about a week before pay day.

I've been taxed with a code OTX and they've taken a lot more than i normally have been in the past. Once my tax code is corrected, will my additional tax be reimbursed?

My new pay is more than my previous job paid, but surely i wouldn't have gone up that much in tax?!

For info:
Previous tax code 1006L (monthly tax taken £101.60)
Tax code on this pay slip OTX (tax taken on this pay £230.60

jem16

lrb7691 wrote: »

I've been taxed with a code OTX and they've taken a lot more than i normally have been in the past. Once my tax code is corrected, will my additional tax be reimbursed?

An OT tax code means you have been given no tax-free allowance this payslip.

Once you hand in your P45 and the tax code corrected you will get any overpaid tax back provided it's a cumulative tax code.

lrb7691

jem16 wrote: »

An OT tax code means you have been given no tax-free allowance this payslip.

Once you hand in your P45 and the tax code corrected you will get any overpaid tax back provided its a cumulative tax code.

Thanks for clearing this up for me! Fingers crossed for next month!

agrinnall

I would query their use of 0TX though, the emergency tax code for 2014/5 is 1000L, which is what they should have used.

chrisbur

To use the emergency tax code the employer first needs the new employee to give a few details regarding past employments along these lines...

"A. This is their first job since last 6 April and they have not been receiving taxable Jobseeker's Allowance, Employment and Support Allowance, taxable Incapacity Benefit, state pension or occupational pension.
B. This is their only job, but since last 6 April they have had another job, or have received taxable Jobseeker's Allowance, Employment and Support Allowance or taxable Incapacity Benefit. They do not receive state or occupational pension.
C. They have another job or receive a state or occupational pension"

If the new employee fails to give this information then the correct tax code to use is 0T on a week1/month1 basis, the employer should not use the emergency tax code without obtaining confirmation that A or B applies.

It is my belief that some employers cannot be bothered to ask for these details and find it easier to just use the 0T non-cumulative tax code until a P45 turns up or HMRC issue a tax code. Whether it was the OP's failure to give the required details or the employer's failure to ask for them is not known at the moment.

patanne

This tax code could be correct if the OP has already had a payment from the previous job but in the same tax month and therefore the employer MAY have avoided a large tax deduction for next month. Just a thought.