Another Tax Question

benjo

benjo

benjo

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Hope this question is straight forward.

I've just started a new job, and I've just had my second months payslip. I've paid tax both times.

My previous job was part time whilst I was at Uni, and according to my P45, I only earned £3784 for this tax year. Am I right in thinking I shouldn't be paying tax on my new job until I hit the tax allowance of £8105?

Thanks
 
dont expect it back straight away, ive been waiting over 10 working days now and hmrc website says i should get my tax back before that..

other people i know have been waiting months, i just get the feeling they want to keep hold of it for some reason
 
benjo said:
Hope this question is straight forward.

I've just started a new job, and I've just had my second months payslip. I've paid tax both times.

My previous job was part time whilst I was at Uni, and according to my P45, I only earned £3784 for this tax year. Am I right in thinking I shouldn't be paying tax on my new job until I hit the tax allowance of £8105?

Thanks
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No, it depends on your salary. Your estimated tax bill for the year, less allowance, is then taken monthly from you.

It will be automatic, what you've overpaid now will mean you pay less in future months or get a rebate.
 
Biohazard said:
It will be automatic, what you've overpaid now will mean you pay less in future months or get a rebate.
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I see, so at the start of the next tax year I might not be paying tax for the first couple of months until I've made up what I was owed from the previous year?
 
couldnt you contact them ? i had to let them know i wanted it back or else i'd probably have to wait till the next tax year
 
benjo said:
I see, so at the start of the next tax year I might not be paying tax for the first couple of months until I've made up what I was owed from the previous year?
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No it isn't like x months 'free' then you start paying.. it's calculated for the year and divided by 12.

If it is sorted before the tax year and you have overpaid being @ BR then your last tax deduction will be minimal or a possible repayment, next year is a different year. Tax years don't cross, any mess up from this year has to be sorted in this year in accounting terms.
 
benjo said:
I see, so at the start of the next tax year I might not be paying tax for the first couple of months until I've made up what I was owed from the previous year?
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Unless its over a certain amount, they will spread outt he rebate over a few months. They do with me anyway, I am under the tx threshold normally but if I do OT I get hammered, then get it back over 3/4 months.
 
If it was closer to the start of the tax year you could contact HMRC and request a different tax code which would adjust for it in the current year. However being so close to 5 April there's no chance of it being turned around that quickly.

Contact them in the new tax year and request a refund, providing them with your P45 from your old job and P60 from your new job. You'll get the refund no matter what but if you push them for it you may be only be waiting a month or so rather than potentially a couple of years.
 
You have a weekly tax free amount. The allowance (£8,105 / 12 = £675 give or take)

Anything you earn over this amount will be taxed at the respective rate.

If you only do 3/4 months work in the year the tax you have overpaid will be refunded to you. Tax is taken on this basis. Easier to take too much (over all) than too little.
 
It's all computer generated, the admin enter the amount and you get taxed according to the amount you earn that month unless you have a different tax code, you can either phone the tax office and get it back or wait till April
 
Tax is taken from your salary pro-rata - you don't start paying tax after you've earned the allowance, you just pay it over the year - so if you're earning 20k, then you'll only pay tax (for this tax year at least...) on £11, 895.
 
-westy- said:
you don't start paying tax after you've earned the allowance, you just pay it over the year - so if you're earning 20k, then you'll only pay tax (for this tax year at least...) on £11, 895.
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I understand this now.

So it's normal that I'm paying tax now as I'm earning over the £8105/12 allowance, but by the end of the tax year I'd have still earned less than the allowance for the year. So I'll be owed? Or am I still getting it wrong?
 
benjo said:
I understand this now.

So it's normal that I'm paying tax now as I'm earning over the £8105/12 allowance, but by the end of the tax year I'd have still earned less than the allowance for the year. So I'll be owed? Or am I still getting it wrong?
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If that's the case, then HMRC will either rebate you via your pay, or send you a cheque. You may need to contact them to arrange this though, it'll get it done sooner. What is the tax code on your payslip currently?
 
benjo said:
Thanks guys.



I did, but it was a bit late. Took a few weeks to get it off my old employer.
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Even if you have completed a P46, they should still use the figures from your P45. Unless you have already had a new code issued from HMRC.

Ask your payroll to take a look at http://www.hmrc.gov.uk/paye/employees/start-leave/new-employee-latep45.htm

They should then use the P45 details (the code, and the pay and tax details) and then calculate your tax accordingly and make any repayment to you with your next wages.
 
764L is not a standard code. Is it the code shown on your P45?

It means that there are some deductions included in your code. Do you/did you have a company car, company healthcare etc?
 
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