New employer hasn't deducted tax

mooingzelda

Hi,

Hoping someone can help with this!

I started a new job in mid-December, which I left last week. My employer didn't deduct any tax or NI contributions from my December pay, which the firm said was because the amount was under my personal allowance threshold (although I'm not sure how that resulted in no NI being paid). My gross pay for that month was indeed under the threshold. My P45 from my last employer arrived a few days later, which I submitted to my new employer.

I received my final pay when I left, which was equivalent to a full month's pay. However, while NI was taken out, no tax was taken out again. I should also be making monthly repayments on my student loan, which I assumed would be resumed now that I had submitted my P45, but nothing was deducted for that either.

The firm said again that I was under the personal allowance threshold for January, but this certainly isn't true - my gross pay before deductions was well over the threshold, so something should have been deducted. Also, I'm certain my personal allowance has been spread evenly throughout the tax year to date up until I started this job.

I've yet to find another job, but is this something that will be rectified through my tax code when I do start in a new role, or do I need to speak to someone from HMRC about it beforehand?

Thanks!

McKneff

No one can help you without numbers......


pay, gross pay, net pay,
tax code....

Scorpio33

Usually when you start a job, in the absence of a P45, the company will ask you to fill out a P46, and if on this form you state you have not worked since the start of the tax year, they will assume this is your only income for the year and tax you accordingly.


If however, you state on the P46 that this has not been your only job, or indeed if you don't fill in a P46, the company usually tax you at emergency tax (ie: deduct more than required), to avoid you having to pay back earnings to HMRC.


ETA: If you do not find another role before the end of this tax year and your only income is PAYE, chances are that future employers will deduct more tax in the future to claw back the tax.


It would be worth a quick phonecall to HMRC to check this out.

In the above situation, it is likely not enough tax will be paid. In this instance, the company would most likely deduct more from the future pay packets to make up for the tax not deducted.

mooingzelda

Scorpio33 wrote: »

Usually when you start a job, in the absence of a P45, the company will ask you to fill out a P46, and if on this form you state you have not worked since the start of the tax year, they will assume this is your only income for the year and tax you accordingly.


If however, you state on the P46 that this has not been your only job, or indeed if you don't fill in a P46, the company usually tax you at emergency tax (ie: deduct more than required), to avoid you having to pay back earnings to HMRC.


ETA: If you do not find another role before the end of this tax year and your only income is PAYE, chances are that future employers will deduct more tax in the future to claw back the tax.


It would be worth a quick phonecall to HMRC to check this out.

In the above situation, it is likely not enough tax will be paid. In this instance, the company would most likely deduct more from the future pay packets to make up for the tax not deducted.

Thank you! I thought as much. I'll get on to HMRC. I wasn't asked to fill in a P46 form, which I thought was odd at the time. I'm not 100% sure the company was doing things in general by the book!

chrisbur

The P46 is no longer used has been replaced by the starter checklist which you can see here. https://prospect-us.co.uk/media/51506/hmrc-starter-checklist.pdf
Broadly same as the old P46 but you may not have been given a copy to fill in; your new employer may have just asked you for the details required.
As McKneff says if you do not give the full details no-one can advise if your tax position is correct or not.