Emergency Tax

christinajanep99

Good Morning. 

I wonder if someone can help with me understanding emergency tax. The information that’s out there is a little baffling.
I have recently started a new job and understand that this month I will be charged emergency tax. Can anyone advise how much this might be. Should a double the normal amount of tax I would pay normally as a realistic estimate. 

TIA

chrisbur

The emergency tax code at the moment is 1250L and assuming that you have had taxable income this tax year before starting this job it will be applied on a non-cumulative basis.  This means the first £1042 (roughly) that you earn will have no tax deducted and after that tax will be deducted at 20% If earnings go above £4166 then tax increases on those earnings to 40% and at £12500 to 45%
The term emergency tax does often get used incorrectly so can you advise who advised this, did they say what code is being used, did you make a declaration on new starter checklist if so A B or C selected.
Be aware that using the emergency tax is just temporary measure that can result in under or over taxing you.

Dazed_and_C0nfused

I have recently started a new job and understand that this month I will be charged emergency tax. Can anyone advise how much this might be

The exact same amount of tax as the vast majority of the country.  As they are also on the "emergency" tax code of 1250L.

As chrisbur has said though you may be getting mixed up between emergency tax and being on an inappropriate tax code such as BR (basic rate).

christinajanep99

Because the school did not have my P45 quickly enough, the finance office have said I may have to pay emergency tax. All I know is that this may be more than what I would normally pay. 

chrisbur

What is the tax code on your P45, if it is 1250L or near that then the tax you pay will be near enough the same as the tax you would have paid on those earnings in your old job. Assuming the emergency tax code is used.
If you completed a new starter checklist and selected option B then you will be put on the emergency tax code and get the allowance based on a code of 1250L on a non cumulative basis.  That means only your earnings for that payday will be looked at no account will be taken of earnings in your previous job.  These earnings will be taken account of in your next payday and any adjustment to tax made then if required.  This may be an adjustment due to under or over taxed on the emergency tax code.  What is the week or month number on your P45 and when is your first payday in your new job.
As I said before some employers have been known to refer to other tax codes as emergency.  Did you make a declaration marked B along the lines of ....
"Since 6 April I have had another job but I do not have a P45. And/or since the 6 April I have received payments from any of the following:...."

Dazed_and_C0nfused

christinajanep99 said:

Because the school did not have my P45 quickly enough, the finance office have said I may have to pay emergency tax. All I know is that this may be more than what I would normally pay. 

No it isn't.  The school either aren't using the emergency tax code or don't understand tax codes very well.

The emeregncy tax code is what most people have and what you were probably being taxed on at your old job.

christinajanep99

Thanks for your comments. 

The month on my P45 is 5 and with the tax code 1250L. 

Dazed_and_C0nfused

That is the emergency tax code (used on a cumulative basis).

So if the school apply the emergency tax code (on a non cumulative basis) you will see no difference.

If you are paid twice in one tax month, once by your old employer and then by the new employer use of the emergency tax code will often mean you owe tax to HMRC and you will get a bill from the in due course (or revised tax code to take a bit extra for the rest of the current tax year).

chrisbur

christinajanep99 said:

Thanks for your comments. 

The month on my P45 is 5 and with the tax code 1250L. 

Month 5 ends on 5th September so looks like you will get your first pay in your new job between 6th September and 5th October.  This will fall in month 6 so assuming that your employer does use the emergency tax code the only difference you will see in your tax will be if your gross wage is different.  If the wage is the same then the tax will be the same within a few pence.  The P45 should be applied by the next month and again there will be no significant change to your tax apart from any caused by a change in earnings.