Tax code 522L M1

caramelita

Dear all,

I apologise if this is in the wrong section, however I was unsure on where I should post this. I would really be glad if someone could give me some advise on my current tax situation.

First some quick details:

• I moved to the UK in October 2007 and started work in January 2008
• I have never received any benefits
• I have not filled out any forms (such as P46) as my employer said it is not necessary (I have a national insurance number though)
• My employer deducts tax from my salary although I am still under the tax free amount of earnings, tax code used 522L M1

I clearly paid too much tax for the tax year ending March 2008 but I am unsure whether I have to fill out a self-assessment form. Also, do I have to fill out a P46 (since I do not have a P45)? Where will I get my personal tax number from? And how can I reclaim the tax back I paid too much?

I read online that tax code 522L M1 is an emergency tax code only. Will my employer change it to a normal one automatically or will the Inland Revenue advise them to do so? Or do I have to inform them?

The tax system in the UK is a bit confusing and I would really appreciate to get some feedbacks to sort out my situation.

Many thanks to all!

fengirl_2

First of all, you do need to complete a P46 as this is your employer's authority to operate emergency code (522L week 1 basis). Unless you sign this form to say this is your only or main job, he should be deducting Basic rate tax. Therefore, ask him for a P46 and for the address of the tax office which deals with you.
You then need to go to www.hmrc.gov.uk and search for form P86. Print it off, fill it in and send it to the tax office. Soon after 6 April your employer will give you a P60 which shows your total pay and tax deducted for the year ended 5 April 2008. Send this to the tax office with a covering letter requesting a refund. You do not complete a self assessment - this is a straightforward repayment claim. Without knowing from which country you have come or how long you will be here for, I cant actually say whether a refund will be due, however.
For the tax year starting on 6 April, you will be on code 535L cumulative basis - there will be no need for the week one basis as your employer will know what your earnings are from day one of the tax year.

caramelita

Hello and thanks for replying so quickly!

I had a look at the P86 - do I really have to give so many details on my past? I moved from Switzerland to UK end of October 2007 and started in my first job on 7 January 2008. I plan on staying here for a couple of years. Do you know with this information whether I qualify for tax refund?

Once again, many thanks!!

System

Yes you do have to complete the P86 as this helps HMRC determine your residency/domicile status.

caramelita

Thanks. It just feels a little weird to give them so much information... what would happen if I didn't fill out the form?

System

You wouldn't be paid any rebate of tax due to you, your application for a rebate would be set aside until they get back any forms they ask you to complete.

When you arrive in the UK (including British nationals who have spent more than 6 months abroad) you have to complete a P86 and when you leave, and intend to stay out of the country more than 6 months, you have to complete a P85.

BTW many foreign nationals are required by their home country to provide proof that they have paid National Insurance contributions whilst working in the UK. Presumably this is so they have entitlement to benefits and a pension at home. Those foreign nationals then request a certificate called an E301 to present to their home authorities. If you want HMRC to issue that certificate and/or issue any rebates of tax then you have to comply with their requests and fill all necessary forms.