Tax and Pay query

yoshiyella

Good evening everyone,

I have started back to work after 7 years being a stay at home parent and am on £41136 a year salary.

Obviously I am not working a whole tax year but am being taxed per month as if I was going to earn £41136 this financial year when in reality I will be getting 7 months of £3480 monthly (total of £24360).

Would this mean I get a tax rebate next year? If so, do you know roughly how much?

Thanks

Dazed_and_C0nfused

Tax is all about the detail.

When was your first pay day?

What statement did you tick/sign on the new starter declaration?

What tax code is on your payslips?

There seems no reason to think a tax refund would be due next year.  You're either paying the correct tax or it can be fixed in the next couple of paydays.

yoshiyella

My first pay day is 30th September (started on 1st September).

Sadly my tax code this month is OT.

Only reason why I think a tax refund maybe possible after April is because I won't have earnt £41136 this financial year yet I will be paying tax based on that annual income, once the emergency tax code is sorted)

yoshiyella

Sorry forgot to mention about the new started declaration - I will be honest I have no idea as signed it 6 months ago

Dazed_and_C0nfused

yoshiyella said:

Sorry forgot to mention about the new started declaration - I will be honest I have no idea as signed it 6 months ago

Why was it completed 6 months ago??

Anyway that seems to be your problem. 

From what you've posted you should be on the emergency tax code (1257L) on a cumulative basis but as the new starter process hasn't been complied with you are on code 0T.

If you had been on the emergency tax code (on a cumulative basis) on 30 September tax would only have been deducted if you earned £6,290 or more.

Probably best option is to check your Personal Tax Account and see if your employer has reported your first wages yet.

If they have then just phone HMRC (8am sharp is recommended) and get them to issue the correct tax code.  Your employer will then refund any overpaid tax in your next pay at the end of October.

By then you would only be liable to tax if your cumulatibe pay exceeded £7338.

And you can save yourself all these problems in future by complying with the new starter process (or making sure your employer does) 🙂

yoshiyella

I applied for the job about 7 months ago for a September start (teaching)

I was under the impression HMRC would just issue the correct code next month?

Dazed_and_C0nfused

yoshiyella said:

I applied for the job about 7 months ago for a September start (teaching)

I was under the impression HMRC would just issue the correct code next month?

I wouldn't be certain about that.

Code 0T is associated with non completion of the starter declaration i.e. it is uncertain what your tax situation is so I certainly wouldn't expect that to happen without you clarifying things with HMRC.

Completion of the new starter declaration avoids all of this hassle!

Grumpy_chap

If the new starter declaration was submitted 7 months ago, that was last tax year so expired (as such) before the actual start date hence why treated as no new starter declaration