What is the point in emergency tax?

LiamC

LiamC

LiamC

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Got my wage slip through today to find out ive been taxed pretty much 50% of what i earn due to being on emergency tax. Phoned up HM revenue and got it sorted however its going to be 1-2months before i get a rebate.

Last months wages were fine but this month is brutal.

Fumming.
 
The point is you didn't provide your employer with a P45. So they have no idea what you were paid, or if you paid any tax, for the earlier part of the tax year.
And if they don't take enough off you, and you end the tax year not having paid enough tax, the employer is liable.
It's very far from being 50% though.
I guess most wages departments are loth to run a payroll between paydays for one employee, but they can do that once they have the correct tax code from HMRC.

Edit: If you did provide them with a P45, or you were working for them at 6 April, then it's the employer's fault. In that case they can recalculate your month's pay and give you the difference. If they want to.
 
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Seems strange you got emergency taxed after already recieving reasonable tax last month, its only usually when you start a new job and they don't have your p45 when you get emergency taxed. Least you get it back in the end :)
 
LiamC said:
Got my wage slip through today to find out ive been taxed pretty much 50% of what i earn due to being on emergency tax. Phoned up HM revenue and got it sorted however its going to be 1-2months before i get a rebate.

Last months wages were fine but this month is brutal.

Fumming.
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This happened to a mate of mine 2 months or so ago - no explaination, just took his money and he had to wait til next month to get it back!
 
You'd think your company would warn you if the emergency tax is to be applied and give you an opportunity to get it resolved before it hits you in the pocket.
 
Tealc said:
You'd think your company would warn you if the emergency tax is to be applied and give you an opportunity to get it resolved before it hits you in the pocket.
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Payroll is normally too small to do this, you can get quite a lot of tax code change notifications in one month to process.

Its really up to the employee to look after their tax affairs in that respect. (p45/46 any problems etc)
 
LiamC said:
Got my wage slip through today to find out ive been taxed pretty much 50% of what i earn due to being on emergency tax. Phoned up HM revenue and got it sorted however its going to be 1-2months before i get a rebate.

Last months wages were fine but this month is brutal.

Fumming.
Click to expand...

HAHAAHAHAHA I thought the same "no problem, just wait 2 months max and I'll get it back.." - not seen a sodding penny yet.
 
They dont know what to charge you, so they charge you everything just to be sure. Then if you notice, they'll give some back.
 
Biohazard said:
Its really up to the employee to look after their tax affairs in that respect. (p45/46 any problems etc)
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BS, if it was up to the employee to look after taxes then the company should not automatically take and pay the taxes but should let the employee file the tax returns themselves

But .. since the company is doing it then it is up to them to get stuff right
 
rypt said:
BS, if it was up to the employee to look after taxes then the company should not automatically take and pay the taxes but should let the employee file the tax returns themselves

But .. since the company is doing it then it is up to them to get stuff right
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Nope - it is your responsibility. In 99% of cases, the company does everything for you, but it is your income, your tax and you have to sort it out for time to time. Every employed higher rate tax payer has to do this every year, along with every self-employed person.
 
The_Abyss said:
Nope - it is your responsibility. In 99% of cases, the company does everything for you, but it is your income, your tax and you have to sort it out for time to time. Every employed higher rate tax payer has to do this every year, along with every self-employed person.
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No, its out of order when you've been taxed correctly all year apart from one month where they decide for no reason to change your tax code to temporary just to get some more money off you
 
thecremeegg said:
No, its out of order when you've been taxed correctly all year apart from one month where they decide for no reason to change your tax code to temporary just to get some more money off you
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Out of order or whatever - sure. But unless your company made an error it is your responsibility to sort it out, not your employers.
 
I believe this is what happened.


I left my old job early april and was offered this job which i took.


I didn't hand in my P45 etc and recieved my first wage which was fine.

I was then told to hand in my P45 or i would end up on emergency tax.

I sent them my P45 which i recieved from my old job and sent it away, however i was on emergency tax on my old job which i didnt know about ( was only there for 1 month ya see ) so they changed my tax code due to that.
 
What 'emergency tax' code are you on? Emergency tax should just be the standard personal allowance on a month 1 basis - so should actually make little or no difference..
 
the code was BR/Cumulative when it should be something like 647L


£500 tax makes me weep!!!!!!!
 
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