emergency tax?

huxley37_2

i have just started a new job,i do not leave my currant job for two weeks as they owe me some holiday my new employer says i will have to pay emergency tax until they get my p45 which is fair enough but how much is emergency tax.i have not paid tax or ni for 8 years as i only worked pt and did not earn enough

grumbler

http://www.hmrc.gov.uk/employers/rates_and_limits.htm

emergency tax code is 489L.

*My understanding* is that you pay tax as if it was your first job. If you earn less than £4895 in total during this year you don't pay any tax. If you earn more you can underpay some tax as a result - in case if you don't bring P45 to the new employer before the end of the financial year.

Fatboy_NSS

Emergency tax isn't the right term to use here. Until your new employer gets your P45 you'll pay tax at the basic rate, which is 24% (I think). Then once they've processed your P45 you'll get a rebate if you've paid too much.

isasmurf

The previous two posters were correct (sort of).

Your tax code will be 489L M1 (or Wk1 if paid weekly). The M1 or Wk1 indicates the emergency tax code. The 489L is the standard personal allowance for an individual. You will be taxed at the basic rate (which is 22%) based on this tax code without any previous earnings during this tax year taken into account. It will result in you paying the wrong amount of tax initially. But don't worry about this, as it will be corrected automatically once you hand in your P45.

Willsnarf1983

i thought that say i earn 20k ( i don't but round figures and what not)

i thought that the first £4890 (or a fig near this) was tax free

i take it i am wrong then????
and then is it the next 2k is taxed at 10% and then the next 30k is at 22%??

ie 4890-0%
4890-6890-10%
6890-20k-22%

they are only ruff figures but thats what i thought...please let me know if i am wrong

Will

grumbler

Yes, rough figures are almost right besides 22% is for £6985-£37295

Willsnarf1983

hi thanks

yeah i was going on the fact that i said i only earnt 20k but yeah thats good...thanks


Will