Redundancy, New Job, New Tax Code

mavisangelica

I was made redundant on 31 March 2016 and was paid redundancy pay, PILON and outstanding holiday pay in April 2016.

I luckily found a new job virtually straight away and started in the middle of April, initially 15.5 hrs a week but this will increase.

I have received a new tax code notice for this tax year stating that my tax code for my new employment has changed from 1100L X to 771T X.

But what I am really worried about is that it also states that I may pay too little tax (£115.06) and that they will review this at the end of the tax year.

Why have they calculated my tax as too little, why not calculate it accurately (but still review it at the end of the year.) And how likely is it that they will be correct and I will owe that amount at the end of the year? (I do know that next year my tax code will be adjusted again to take account of the shortfall rather than paying them).

Dazed_and_confused

I think this means your tax code has been put on an emergency basis and this means the 771T will be used each pay day from now on but your new employer won't be asked to re-calculate things back to April 2016.

I guess you could ask the HMRC to send your new employer the tax code again on the normal cumulative basis along with details of your April 2016 income from your old employer and then the new company would re-calculate things back to April but the HMRC seem to think you would have an extra £115 to pay and your new employer would take this all in one go the next time you got paid - do you really want that working 15 1/2 hours?

jneves

On the potential impact of your payments, if the difference at the end of the year is less than £3000 (as seems very likely from your description) they'll just discount it in your next tax code instead of asking you to pay it all at once (so you'll pay it spread out through the year without owing any interest).

CLAPTON

mavisangelica wrote: »

I was made redundant on 31 March 2016 and was paid redundancy pay, PILON and outstanding holiday pay in April 2016.

I luckily found a new job virtually straight away and started in the middle of April, initially 15.5 hrs a week but this will increase.

I have received a new tax code notice for this tax year stating that my tax code for my new employment has changed from 1100L X to 771T X.

But what I am really worried about is that it also states that I may pay too little tax (£115.06) and that they will review this at the end of the tax year.

Why have they calculated my tax as too little, why not calculate it accurately (but still review it at the end of the year.) And how likely is it that they will be correct and I will owe that amount at the end of the year? (I do know that next year my tax code will be adjusted again to take account of the shortfall rather than paying them).

tax is about detail
the only way you are going to know the situation is to work out the numbers

if you wish to post up the details then we can work the situation out for you

Kouchris

Hello Mavi,

Could i please ask if you had to fill in a P46 for the nee employment? did you tick the box that said this is your only employment and that you had another employer since april 2015?

I have some issues trying to understand how i will be taxed. See my original post below.

Hello Everyone,

I have taken the leap onto online forums for the first time. I have been reading them for a while but i never took the time to ask questions myself. I thank you all for the information you have provided and the help you have offered.

A bit of background story

Right, to the main subject. I have recently been fired from my previous role due to "poor performance". As i am sure some of you might have had similar experiences this is a really hard process to go through and getting a new job is really stressful.

After beeing fired i was advised by a number of different people (including the employer that fired me) to not disclose that i was fired from my role as this will make it a lot harder to secure a new role.

Main Points

Thank fully i have secured a new role quite fast and i am now working for a new company and will hopefully do better this time around.

• I was let go end of November and will be paid until and including December. My previous employer could not have people that were fired working in the department so i will get paid for the whole notice period (December) without working.
• When i started with the new employer i did not disclose that i was let go.
• When i filled in the the P46. I declared that this is my only employment. As it practicly is.
• Practically, i will get paid by 2 employers at the end of December. And, again, theoretically, this is not my only employement as of December as i will get paid for 2 jobs. Even if i work only one.

My concerns

• Have i made a mistake filling in the form that this is my only employement?
• Will i be using 2 tax codes? one emergency one for my new employment (as i filled in that i dont have a P45, Which i dont.) and another normal tax code from my previous employemnt as this would be a normal-last payment?
• Will my current employer know that i received payment for another employment for December? Maybe the tax and NI get a bit weird looking? I read about Deffered NI on gov.uk, could this be something that will raise a flag with my payrol? As you can understand it will look weird since they think i quit my previous employment on november and therefore i should have been paid for my last month.

I know that this is a lot to ask at one post but i am really in a hard spot. I really want to keep this role and do well. I am not fond of coming clean with my current employer, as this will complicate relationships and the trust they have in me.

I am not overly concerned with the tax i will pay or about tax fraud as i have not hidden anything from HMRC. HMRC and the end of the day will see my earnings under my tax code and will tax me for the right amount - im sure.

Thank you all in advance for your kind help and assistance. I deeply apologize for the long post.

Kindest Regards,
Chris