Tax code: BR NONCUM

JustAnotherSaver

If someone has started a new job & their first payslip says this for the tax code then beyond it being emergency tax, what's the situation for getting things sorted?

For more info, multiple new starts taken on at the same time. One already had their paperwork (P45, P60) & went to their manager with it to get things sorted & was told it's ok we don't need that.

FFWD a couple week to payday & they also get hit with the BR NONCUM tax code & have a fair bit of tax taken off them when they're on a bit of a tight month & could've done with it being right.

For further info - it's the NHS.

chrisbur

BR tax code is not the emergency tax code, the only time that a new starter should be put onto BR tax code is if they completed a new starter declaration and advised that they had another source of taxable income.  
If there is no P45 the employer should ask for details to complete a new starter checklist which would usually allow them to use the emergency tax code of 1257L  If the new starter declines to give the details for the new starter checklist  then tax code 0T should be used.
A late P45 should always be accepted though if HMRC has issued a code and pay/tax details, the P45 details should not be used.  A P60 should not be accepted that is just for the employee to keep as their record for last year.
All in all seems a bit of a shambles.  You might try a new starter checklist....
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/963434/Starter-checklist_English_2021_2022.pdf
....to get the emergency tax code but it sounds like the payroll dept. is just using BR until HMRC advise details.  
I have no idea how quick this might be and if the starter checklist is not accepted about all I can suggest is ring HMRC to see if they will get the details to the employer as quick as they can.

Savvy_Sue

At this stage in the tax year there's likely to be little difference between BR NONCUM and 1257L, surely?

JustAnotherSaver

chrisbur said:

I have no idea how quick this might be

If it's HMRC then I don't know.

If it's NHS then judging by what others have said & what has been experienced, it could take about 10 lifetimes.

Thanks for the response. I'll pass the info on.

Savvy_Sue said:

At this stage in the tax year there's likely to be little difference between BR NONCUM and 1257L, surely?

I've no idea myself.

What I do know though is just over £400 tax was paid on just over £2200 earned.

And in month 1 of this tax year I paid £183 tax on just shy of £2050.

molerat

Savvy_Sue said:

At this stage in the tax year there's likely to be little difference between BR NONCUM and 1257L, surely?

BR  will take 20% off all income whereas 1257 will allow £1048 per month before any tax is deducted as illustrated by the above tax deductions from a similar wage.

If they are on BR and the P45 was for this year the manager needs a kick up the backside as not only have they failed to use the documents they have made the wrong declaration for a new start.

chrisbur

molerat said:

Savvy_Sue said:

At this stage in the tax year there's likely to be little difference between BR NONCUM and 1257L, surely?

If they are on BR and the P45 was for this year the manager needs a kick up the backside as not only have they failed to use the documents they have made the wrong declaration for a new start.

In many cases the P45 does not have to be for this year, the tax code for last year can often be used from last year's P45 up to 25 May. Even after this date the P45 is enough for the new employer to use the emergency tax code.
 

JustAnotherSaver

Not sure if it helps clarify things but -

individual involved (well actually there's many of them but the one that I'm looking in to it for)...was hoping to start in time for the new tax year. It didn't quite work out that way & they started a little afterwards. Couple of week perhaps.

New starter packs were mentioned IIRC as was something along the lines of they have another job at the moment - which was accurate.

So unless HMRC think then that they're doing 2 jobs?

I know it has its perks in some areas but I'm glad I don't work for the NHS myself. My fuse is way too short for that lack of organisation. Not to mention 'working dinners' and having to do more work once you've gone home. What's that all about? Not for me that! But that's drifting off topic...

I'm wondering if maybe a direct phone call to HMRC is perhaps the best option for a speedy fix?

p00hsticks

JustAnotherSaver said:

New starter packs were mentioned IIRC as was something along the lines of they have another job at the moment - which was accurate.

Accurate ? Or Inaccurate ?
If they ARE doing two jobs, and one is using up their tax allowance (code 1257L) - i.e.they are earning at least £1048 taxable income a month in it -  then it's right that the second job is taxed at BR (unless the two jobs together are taking them into a higher tax bracket, in which case they'll be underpaying tax). 
Probably the easiest way to sort it (assuming that they already have or can pass the ID requirements to get a Government Gateway logon) is to check their online tax account to see exactly who HMRC think is employing them.     
HMRC services: sign in or register: Sign in to HMRC online services - GOV.UK (www.gov.uk)

Savvy_Sue

molerat said:

Savvy_Sue said:

At this stage in the tax year there's likely to be little difference between BR NONCUM and 1257L, surely?

BR  will take 20% off all income whereas 1257 will allow £1048 per month before any tax is deducted as illustrated by the above tax deductions from a similar wage.

If they are on BR and the P45 was for this year the manager needs a kick up the backside as not only have they failed to use the documents they have made the wrong declaration for a new start.

Of course, apologies, I was confusing BR with 1257 (or whatever) M1. 

For the less tax literate (which should probably include me ...), 1257 M1 code will deduct £1048 from the monthly salary and tax the rest. At an early stage in the tax year that is likely to make very little difference to the actual tax paid. BR is deducting tax from the lot, as molerat describes. 

JustAnotherSaver

p00hsticks said:

JustAnotherSaver said:

New starter packs were mentioned IIRC as was something along the lines of they have another job at the moment - which was accurate.

Accurate ? Or Inaccurate ?
If they ARE doing two jobs, and one is using up their tax allowance (code 1257L) - i.e.they are earning at least £1048 taxable income a month in it -  then it's right that the second job is taxed at BR (unless the two jobs together are taking them into a higher tax bracket, in which case they'll be underpaying tax). 
Probably the easiest way to sort it (assuming that they already have or can pass the ID requirements to get a Government Gateway logon) is to check their online tax account to see exactly who HMRC think is employing them.     
HMRC services: sign in or register: Sign in to HMRC online services - GOV.UK (www.gov.uk)

Accurate - as in it was accurate at the time though what I should've said was "different" rather than "another" so that's my fault.

As they approached the end of the last tax year they were in their old employment while paperwork was being sent here there and everywhere.

They started the job with the NHS a few week in to the current tax year.

At no point did they work 2 jobs at the same time.

I should've been clearer.

I know they've tried sorting the government gateway to find info out but it keeps telling them they're entering incorrect details.