Question regarding my P45 which has been lost in the post

coffee-white-no-sugar

blondebubbles wrote: »

Yes it goes up every year.

2013/14 was £9440 so tax code 944L
2014/15 was £10,000 so tax code 1000L
2015/16 is £10,600 so tax code 1060L

Gosh its getting better and better lol


Thanks so much for all your help!

agrinnall

blondebubbles wrote: »

Yes it goes up every year.

It goes up every year that the Chancellor says it's going to in the previous year's budget. Last time it didn't go up was in 2003-4 when it stayed at the previous year's level of £4615.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/418665/Table-a1.pdf

chrisbur

InsideInsurance wrote: »

You are highly unlikely to be put on an emergency tax code. Fill in the P46, well technically its called the Starter Checklist but its a P46 by another name, when you start with the new company.

Under the circumstances described by the OP they are certain to be put onto the emergency tax code. The starter checklist (the old P46 was the same) is in fact the form your new employer needs to put you onto the emergency tax code. The emergency tax code for this year is 1060L. You are not " taxed to the hilt" on emergency tax code, it is a best guess on your tax position until it is sorted out. Some pay to much tax, some to little tax and many close to correct tax when on emergency tax. It is only if you do not give the details required to use the emergency tax that you will almost certainly pay far more tax than you need to.
So simple rule if you cannot be on the correct tax (say if P45 lost) then you want to be on emergency tax.

chrisbur

blondebubbles wrote: »

Your P45 for an employment ending at end of Jan wouldn't be relevant to a new employer now as it is in 2 different tax years.

There is a period at the start of each tax year when the tax code from a P45 issued in the last tax year can be used after making any adjustments required by the budget, so a code of 1000L for last year would become 1060L for this year. Pay and tax figures on a P45 for last year are ignored.

InsideInsurance

chrisbur wrote: »

The emergency tax code for this year is 1060L.

Which? have BR as the emergency tax rate and assuming the OP doesnt earn enough to loose all their personal allowanceamount then it would result in over taxation

coffee-white-no-sugar

InsideInsurance wrote: »

Which? have BR as the emergency tax rate and assuming the OP doesnt earn enough to loose all their personal allowanceamount then it would result in over taxation

Oh heck Im getting confused now??

chrisbur

InsideInsurance wrote: »

Which? have BR as the emergency tax rate and assuming the OP doesnt earn enough to loose all their personal allowanceamount then it would result in over taxation

From the Which site at
http://www.which.co.uk/money/tax/guides/tax-codes-explained/emergency-tax-codes/

"If your employer does not know what your tax code should be, you will be taxed on an 'emergency' code of 1060L (1000L in 2014-15) or given a BR code."

Emergency tax code is 1060L but if you have another source of taxable income such as a pension then instead of emergency tax you will be taxed on BR and if you do not give the details required to get the emergency tax code then 0T code is used.

Again from the Which site
"If you are put on the emergency code 1060L, you will be given a tax free allowance of £10,600, above which you will start paying tax."
This is a bit of an over-simplification but you do get a tax allowance with the emergency tax and it remains the case that if you cannot be on the correct tax code then emergency tax is what most should aim for.

coffee-white-no-sugar

That makes better sense chrisbur,thank you so much.

chrisbur

blondebubbles wrote: »

The HMRC website tells the the employer that if the employment end date on the P45 is before 6th April then a starter checklist is required. It does not tell them to adjust the current tax code based on the previous one.

Information regarding PAYE is a lot thinner on the ground than it used to be. HMRC used to produce a chart on their website but this has now gone and all I can find is an archived version. http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/employers/p45-new-employee.htm
They now seem to rely on the "Work out your new employee's tax code" website at https://www.gov.uk/new-employee-tax-code

Currently this seems to be only partly updated for the new tax year but the principle can be seen if you enter figures for last year. So if you enter for someone leaving their old job in 2013/2014 tax year and starting a new job in 2014/2015 before 25 May 2014 with a P45 having an L code you are instructed to "Add 60 to your employee’s tax code" to get the tax code to use.

From the site....
"Work out your new employee's tax code

1 On their P45, when did your employee leave their last job?
6 April 2013 to 5 April 2014

2 On their P45, does their current tax code include BR, 0T, D0 or D1?
No

3 When did your employee start working for you?
Before 25 May 2014

4 On your employee’s P45, does their tax code end in ‘L’?
Yes

Add 60 to your employee’s tax code (eg 1000L becomes 1060L). Use starter declaration code B"

If you answer that they started on or after 25 May you get the instruction "Use the tax code 1060L on a ‘Week 1/month 1’ basis, and starter declaration code B"

As I said only partially updated it is using the current tax codes.

Can you give a link to the HMRC site that you refer to, I would be interested in having a look at it.

coffee-white-no-sugar

My tax code for 2014/2015 is 1000L chrisbur and I started my last job in March 2014,I left this job at the end of January 2015.I,ll be starting my new job at the very end of April 2015.
Does this mean I will start on 1060L ??