Girlfriend being taxed

DannyWhoWorks

My girlfriend had a part time job while at University, she was earning on average £180 a month. She left this job in June.
In July she started a new job, however, this was only temp and left two weeks later. She on average earned £300 – she was taxed on this (not sure how much).
For the summer she was unemployed.
She now has two jobs, one job is once a month and earns around £100 a month from this job (she is being taxed on this!)
She also has a Christmas tempt job which she started last month which on average she will earn £700 a month (she is also being taxed on this).
She has got herself in a bit of a muddle and she’s just seeing all this random tax being taken off her hard earned money and we just wanted to be clear if she is going to get any of this back?
We have worked out that from April 2014 to April 2015 her annual income is going to be less than £10,000.
Does this mean even if she is getting taxed now? (it is quite a lot out of her normal wage!) – she will get ALL the tax she has paid back in April? If this is true, I don’t’ think she minds so much, it is just knowing that she will get it back.
And if yes, will she just get a cheque through the post or will she have to apply?
Kindest Regards.

CLAPTON

if she earn less than 10000 over the whole year then yes she can claim it all back ; however it would be better if she go it back now (less hassle)


so what are her taxcodes on the jobs?
they should be on her payslips

Angry_Bear

DannyWhoWorks wrote: »

She has got herself in a bit of a muddle and she’s just seeing all this random tax being taken off her hard earned money

Welcome to the wonderful world of work

We have worked out that from April 2014 to April 2015 her annual income is going to be less than £10,000.
Does this mean even if she is getting taxed now? (it is quite a lot out of her normal wage!) – she will get ALL the tax she has paid back in April?
And if yes, will she just get a cheque through the post or will she have to apply?

Assuming her earnings from April 2014 - 2015 are in fact under 10k, she will get all the tax back. With PAYE, your tax every month is calculated based on the assumption that whatever you earned that month will be what you earn every month. After the end of the financial year, she'll get a P60, and any tax differences will be sorted out by HMRC.

If she applies now, she should get the tax back sooner, if not then when HMRC shakes everything out she'll be sent a cheque. From memory, I think this normally works out to be August-ish (it takes them a while after April).

sheramber

I would advise her to keep a record of

the name and adress of her employer

the dates she started and finished

the gross amount she was paid

the amount of tax deducted

She should keep any payslips/ P45 's she has been given.

That way she can advise HMRC of all her emplyment record and pay and tax over the year.

If she sends a copy of the information so far to HMRC they may be able to issue information to her current employer to bring things up to date and refund any tax overpaid to date.

agrinnall

To my mind it's likely to be her fault that she's being taxed (through an understandable lack of knowledge how tax works) although it could be due to bad practices by employers.

When she is working at one job then the whole of her personal allowance should be applied to that job, and her payslips should show a tax code of (probably) 1000L. That's achieved by either handing over the P45 from the last job she had, or by completing a New Starter Checklist. If neither of those happens, or for some reason it doesn't result in the correct tax code, then contact HMRC to resolve it.

When working at more than one job at the same time the default position is likely to be that the additional jobs will receive a tax code of BR, meaning all pay in those jobs is taxed. This can be resolved by contacting HMRC to arrange for her tax code to be apportioned between the jobs so that no tax is due.

From what you have told us she should be able to sort things out with a call to HMRC so that any tax paid so far this year is refunded in her pay, and she should pay no more tax this year. Communication is the key.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

Calling first thing (or earlier, it's been stated on here that lines are likely to be open from 7:45) is usually the best time to get an answer without a long wait.

DannyWhoWorks

Thank you so much for your replies! Very helpful and we are going to be contacting them very soon. For your information one tax code is: 0T M1 and the other is 0T.

CLAPTON

DannyWhoWorks wrote: »

Thank you so much for your replies! Very helpful and we are going to be contacting them very soon. For your information one tax code is: 0T M1 and the other is 0T.

clearly the tax codes are incorrect


she will need the details of each employer and pay to date for all jobs from 5th April 2014


she can either ask for one of her current jobs to be 1000L cumulative (the larger income) and the other BR


or ask for her tax code to be split between the two jobs

agrinnall

From the figures you've posted it appears that she's never earned as much as £833 per month, so CLAPTON's second option of a split between jobs is probably the right way to go as that should mean not paying any tax at all.

DannyWhoWorks

I really appreciate your help guys! Very helpful!
One more thing. You are correct my girlfriend has never earned as much as £833 per month yet, but will be next month with this new Christmas Temp Job(£950ish) and will for December's and Januarys pay.


From your experience, will it be better for her to 'split' her code or ask for the 1000L and BR. Because she has earned so little so far in the tax year (£1580) approximately.


We have worked out:
November Pay: £970 from Job 1 £0 from Job 2
Decemeber Pay: £970 from Job 1 £60 from Job 2
January Pay: £970 from Job 1 £100 from Job 2.


Thanks again for your advice and help!

CLAPTON

DannyWhoWorks wrote: »

I really appreciate your help guys! Very helpful!
One more thing. You are correct my girlfriend has never earned as much as £833 per month yet, but will be next month with this new Christmas Temp Job(£950ish) and will for December's and Januarys pay.


From your experience, will it be better for her to 'split' her code or ask for the 1000L and BR. Because she has earned so little so far in the tax year (£1580) approximately.


We have worked out:
November Pay: £970 from Job 1 £0 from Job 2
Decemeber Pay: £970 from Job 1 £60 from Job 2
January Pay: £970 from Job 1 £100 from Job 2.


Thanks again for your advice and help!

It would be better to split her tax allowance over the two jobs.
given her low earnings to date a 50-50 split would work initially .
make sure they are aware of her previous employments so the tax is refunded (via the payroll)

DannyWhoWorks

Thank you so much It is so hard to get across all the information on the phone, so she is going to write a letter. (well I am! :P).


Thanks again for all your help!