Earnings till date £3000-starting work end of tax year..will i be taxed or get a rebate?

muffinsugar

Hello all

pls i need advice. my earnings till date (current tax year) are £3300 as i was on SMP. ive started work last week and my first pay will be on March 24th, at £2667/month. (£32k/annum)

i didnt have a p45 to give my new employer but i filled in a new starter checklist, so i suspect my taxcode will be 1185lM1.

will i still be taxed as this is the last month in the tax year and ive obviously not used my personal allowance?

Is there a way i can make sure im not taxed? and if eventually i am, how will i get it back? wll HMRC send it by post immediately i call them?

Thanks in advance

comeandgo

If you are on a month 1 basis and that code is, then you will be taxed. You will have to contact HMRC and they will repay the tax to you but it could take a few months.

muffinsugar

Thanks for the quick reply.

do you know how much tax this will be as i believe this is also an emergency tax code

thanks

Dazed_and_confused

If £2,667 is the taxable pay i.e. after any "net pay" pension contributions then the tax deducted would be £335.60.

HMRC will refund this in due course (unless you are filing a Self Assessment return for 2018:19).

BoGoF

You could try phoning HMRC to see if a cumulative code can be issued but will be cutting it fine for your payroll to get this in time.

Dazed_and_confused

You could try phoning HMRC to see if a cumulative code can be issued but will be cutting it fine for your payroll to get this in time.

Isn't this a bit catch 22 situation though. HMRC will only know she is employed after the first payment. Once the first payment has been made it is too late for a new tax code to be used (given it will be for the final month of the tax year).

BoGoF

Dazed_and_confused wrote: »

Isn't this a bit catch 22 situation though. HMRC will only know she is employed after the first payment. Once the first payment has been made it is too late for a new tax code to be used (given it will be for the final month of the tax year).

Most likely.....I'm 'old school' and still thinking that notification is sent when an employee starts but maybe no longer the case with RTI

muffinsugar

thanks a lot everyone for your input. really appreciate

by self assessment, what do u mean pls

i filled in the self assessment retun due on jan 31st as a director of a company that ive not used for about 2 years as ive moved on to paye. I paid tax return of 62p.

is this what you mean?

Dazed_and_confused

Sort of.

If you file a Self Assessment return then HMRC will not need to proactively repay you any excess PAYE tax deducted.

You will complete your return and include all taxable income for the year and get a calculation showing the tax payable or overpaid. If you complete the return correctly the return will include the income from this job (and any tax deducted). Any tax overpaid can be reclaimed and will be paid into your bank account (there is a section on the return for this).

You cannot make a separate claim, it is all part of your Self Assessment return (if you need to file one).

muffinsugar

ok thank you.
like i said ive filled in a self assessment return earlier this year,, so to get this tax rebate back, do i need to wait till next year jan 31st 2020 to fill the SAR for 18/19, and then i get teh tax rebate back then ?

sorry if im sounding a bit thick , just need to understand the process

Dazed_and_confused

If you are required to complete a return for 2018:19 you can do so from 6 April 2019.

If you choose to wait until the last day that's up to you but there is no need whatsoever to leave it that long. But millions do apparently.