****tax code question***(PS I am debtmonkey1a-password mix-up!)

debtmonkey_2

Hi all-I am in fact debtmonkey1a-keep losing/forgetting p/words & e-mails!

I've now started my new job which is great!

As I've been self-employed I just gave my NI number to their payroll department. I don't know why I'm worrying about this as A)-as there's only 2 1/2 months left of tax year I'm fairly sure no 'NIL' tax code (went BR last June) & -I now owe IR nothing as included in BR debts.
For some reason I have it in my head I'll be on a 'different' tax code (emergency??) OR employers will ask for some sort of document (obviously have no P45 or any docs as no tax was paid when s/employed!)..
Everything is going great at the moment...am really happy & don't want anything to go wrong!
Any 'calming words' that will stop me flapping??!

fermi

Until your employer confirms a code and previous tax info with HMRC you would normally be on a 'week/month one' code I think.

That just means that they would tax you as if it was the first week/month of the tax year since they won't know immediately how much of your personal allowances have been used up.

On PAYE when the code/info comes through and you have now been taxed too much on the total wages so far, some of the tax paid under 'week/month one' is often refunded through PAYE.
Otherwise you can claim it back at the end of the tax year if you have still paid to much by then.

That's the understanding I've always had anyway.

debt_doctor

Thats exactly right Fermi.

DD

DEBTMONKEY1A

Thanks guys for taking the time to post! Everything is AI at mo-new job-health better/lot weight....etc....all i need now is the early discharge (!!! I was told i would get one by the OR -who is now at another office-only sticking point which the OR strangely said would not hold anything up (?!!!) re: ED is the sale of my old house-which has been on the market for 6 months-maybe my 'men behaving badly' (!) lifestyle has affected the saleability!)!

So assume from what you say I'll be on normal single persons (503L?) tax code-no emergency tax? Will i be any worse off on this week/month 1 code than with a standard single persons code?

Also, from various other posts assume the link between IR & receivers office is tenuous-so hope IR don't contact OR & dealy any ED (I'm not earning any more money at mo so financial circumstances have not changed-now just PAYE not s/employed).

Thanks again guys!

********PS-Now found correct password for debtmonkey1a!****

debt_doctor

Hi all you debtmonkies !

Glad things are working out for you. Your assumption is correct, your 1st months wage will have one twevlth of your tax code allocated against your wage so tax code 503L = allowed to earn £ 5030 per year without paying tax so 5030/ 12 = 419 meaning the first £ 419 on your first months wage will not be taxed.

As for links between IS and IR im sure you remember my pm from earlier !

Best

DD

fiveyearplan

Welcome back debtmonkey1A. Glad you remembered your password. Great to hear you are doing so well.

DEBTMONKEY1A

Thanks all!!

This new job is FAB-potential earnings are great & 'luckily' my wages have been so so much under the average monthly on SOA I can earn some more-which will be nice! In fact, my outgoings are actually £200 OVER my average wage & the examiner who I saw at the OR office said, i quote 'we only really need to know if you're earning over £100 over your outgoings on a regular basis-if you have the odd big month we don't need to know but if your AVERAGE income consistently is averaging at over £100 a month over your outgoings then let us know' ..

So happy days! If full term runs then only 5 months to go!