Tax Savvy?

aslco

aslco

aslco

Soldato
Joined
10 Feb 2008
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Hey i need some clearance on this all!

Okay so far due to being in education till July etc i have not earned past the basic personal allowance for the tax year so far. Now i have been earning from august till now through a past employer and i have still not received the p45 from them yet (this is okay as i had been warned it'll take a while).

So i shall have to fill out a p46 with the 'this is my only job, but i have worked for another job before this' box ticked for my new job (i have to have this done by wednesday to get in on the next pay day!). I know this puts me on emergency tax code for now, but my question is do they have records that i am below my personal basic allowance before being taxed so far this year, so emergency tax will only kick in once i have gone past that amount?

Major thanks if anyone can put my mind at ease!
 
Fill it in, tick that box.

You'll then get the 'Emergency Tax' code, which is the normal personal allowance on a 'month 1' basis (assuming you're paid monthly) - this means you'll get 1/12 of the £6,475 allocated to each month's pay.

This will result in a slight overpayment given you weren't employed from April to August, but you'd hope you get a P45 before then. Once you hand this over to your current employer, it should all be sorted. Else you'll have to sort it with your local tax office after April if not.
 
so you're saying the amount left after £539 (near enough 1/12 of the basic personal allowance) will then be taxable at a rate of 20% on emergency tax?


all im saying is at the moment if i had my p45 now then on pay day at my new job ( near end of december) only national insurance would be deducted, but without it im now getting 20% tax taken even when at the moment it should be nothing..... i know i can claim it back later, but i thought they may have records that meant tax wasn't taken till i'm past this amount.
 
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according to that link regardless that i may be on emrgency tax code come pay day ill get full amount only minus Ni contribution as i have not gone past my 6475 for the tax year yet....?
 
lozzick said:
according to that link regardless that i may be on emrgency tax code come pay day ill get full amount only minus Ni contribution as i have not gone past my 6475 for the tax year yet....?
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Not sure where you got that from?

Read the bit re Month 1/Week 1 codes.
 
ok so the plan is get my pay details in by wednesday albeit temporarily on emrgency tax, but hopefully get my p45 and change it ASAP before pay day and they should be able to change it easily enough so that my codes back to mr nice tax code come pay day?
 
lozzick said:
ok so the plan is get my pay details in by wednesday albeit temporarily on emrgency tax, but hopefully get my p45 and change it ASAP before pay day and they should be able to change it easily enough so that my codes back to mr nice tax code come pay day?
Click to expand...

It will be adjusted on your pay by the wages dept once the correct tax details come through. (Should be anyway!)
 
yeah spose, jsut had a look, not too terrible. Just out of interest, if i had my p45 etc to be put on correct tax code, then how does basic pay rate work then? i just get taxed once i've passed 6475 for the year full stop? rather than reserving 539 each month untaxable?
 
lozzick said:
yeah spose, jsut had a look, not too terrible. Just out of interest, if i had my p45 etc to be put on correct tax code, then how does basic pay rate work then? i just get taxed once i've passed 6475 for the year full stop? rather than reserving 539 each month untaxable?
Click to expand...
No, it' would still split across the months you receive taxable income.

This is so you receive the same net pay each month - else you'd be receiving totally untaxed income in the first few months of the year, followed by significantly less for the rest of the tax year. Which isn't very helpful.
 
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