Avoid Emergency Tax

danoid

Hello, so I've had a horrible few years trying to find a job, when I mean horrible I really do mean horrible!

I was in a job for 5 years, had to take redundancy and that ended Jan 1st 2020, tried looking for a job but wasn't much around, I eventually got a role for a few months and that ended at the end of 2020, and was looking for a job all year and nothing.

I will now finally start a new role early in the new year, would I be put on emergency tax or will it just be the standard 1257L? As I've not paid any tax or claimed any benefits I guess I wouldn't be on emergency tax?

Dazed_and_C0nfused

1257L is the emergency tax code.

Google new starter checklist and let is know which statement you would sign, A or B?

unforeseen

Only if its followed by X, M1 or W1 otherwise it is the normal tax code

Dazed_and_C0nfused

You are getting confused between the tax code (1257L) and the basis on which it is operated.

1257L is the emergency tax code and this can be operated on either a cumulative or non cumulative basis.

Extract from the P9X form below refers.

Introduction
For 2021 to 2022 the basic Personal Allowance will be £12,570 for the whole of the UK. The threshold (starting point) for PAYE is £242 per week (£1,048 per month). The emergency code is 1257L for all employees.

Grumpy_chap

Wouldn't the emergency tax code be "BR"?

Dazed_and_C0nfused

Grumpy_chap said:

Wouldn't the emergency tax code be "BR"?

Nope.  For new employees that would just be used where the employee had ticked statement C on the new starter checklist.

Statement A = 1257L cumulative

Statement B = 1257L non cumulative

Checklist not completed = code 0T

Dazed_and_C0nfused

eventually got a role for a few months and that ended at the end of 2020, and was looking for a job all year and nothing.

What about the job with the company van you asked about a few weeks ago 🤔

danoid

Dazed_and_C0nfused said:

1257L is the emergency tax code.

Google new starter checklist and let is know which statement you would sign, A or B?

I'd be Statement A.  To be honest i've never seen this form before, I guess when I start my new role, i'll fill in that checklist and be taxed correctly 1257?

Dazed_and_C0nfused said:

eventually got a role for a few months and that ended at the end of 2020, and was looking for a job all year and nothing.

What about the job with the company van you asked about a few weeks ago 🤔

Good question, never heard anything back, recurring theme with the majority of recruitment folk these days for some reason, they don't call they don't write, just vanish into thin air

danoid

I've always had an L after my tax code, 1257L is the standard code according to everywhere i've looked, if it's emergency its different codes

Dazed_and_C0nfused

If you sign statement A then your employer should use the emergency tax code (1257L) and operate this on a cumulative basis so you won't pay any tax unless you are paid more than,

£9,434 by 5 January

£10,482 by 5 February 
£11,530 by 5 March

£12,579 by 5 April.

From April 2022 you will pay tax on anything over £1,048/month.

danoid

Dazed_and_C0nfused said:

If you sign statement A then your employer should use the emergency tax code (1257L) and operate this on a cumulative basis so you won't pay any tax unless you are paid more than,

£9,434 by 5 January

£10,482 by 5 February 
£11,530 by 5 March

£12,579 by 5 April.

From April 2022 you will pay tax on anything over £1,048/month.

Isn't emergency tax where you get taxed more though?

From the gov website

Emergency tax codes

If you’re on an emergency tax code your payslip will show:

• 1257 W1
• 1257 M1
• 1257 X

What your tax code means

Your tax code is made up of several numbers and a letter.

1257L is the tax code currently used for most people who have one job or pension.

Letters	What they mean
L	You’re entitled to the standard tax-free Personal Allowance