Ugh oh. I'm on tax code BR and have been for a year!

Jez said:
BR means that he has not been receiving any personal allowance. While it is true that there is a threshold at which you erode your entitlement to a personal allowance, it is unlikely to apply in this case i would say :)
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This, doesn't it mean your personal allowance is taxed at 20%?

Also, how could you not notice this? :p
 
I was in a similar situation a couple of years ago. I was alerted to it when we had a change of management in the payroll department.

I phoned HMRC with my payslip details and previous P60's etc. and apart from it taking me about 45 mins to get through to someone it was a very painless process. The lady on the phone took my details and then checked back over the last 7 years for me. She found that I had overpaid tax for 3.5 years previous and organised a calculation to be done. I was told that I would receive a letter informing me of the calculation and the ammounts due back followed by a cheque within around 4 weeks.

4 weeks later a cheque for £3.5k hit the mat :D

/Salsa
 
Dunks said:
This, doesn't it mean your personal allowance is taxed at 20%?

Also, how could you not notice this? :p
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Worse than that, it means you dont get one at all. Therefore higher rate comes in "sooner" too.

I never understand how people fail to keep on top of their tax either :p
 
I got put on the BR code.

changed jobs back in August 2012, all was fine until the end of the tax year, I received no P60, but got 2 letters at the same time telling me about the change in tax code, should be on 950L and the other that I was on BR, didnt think anything of it (stupid I know) and then got tax this month with £140 more than I normally do.

All sorted now, should get a nice £160 bonus next month, thats if I can make it haha
 
Salsa said:
I was in a similar situation a couple of years ago. I was alerted to it when we had a change of management in the payroll department.

I phoned HMRC with my payslip details and previous P60's etc. and apart from it taking me about 45 mins to get through to someone it was a very painless process. The lady on the phone took my details and then checked back over the last 7 years for me. She found that I had overpaid tax for 3.5 years previous and organised a calculation to be done. I was told that I would receive a letter informing me of the calculation and the ammounts due back followed by a cheque within around 4 weeks.

4 weeks later a cheque for £3.5k hit the mat :D

/Salsa
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Did you need to give the P60s for all previous years? or were they able to look it up by NI number/ other details?

I'm sure I'm owed some (I know I am for my current job) but notsure where the p60s are from my previous jobs.
Also still not recieved my P45 from previous employer :/
 
mac1st3 said:
Did you need to give the P60s for all previous years? or were they able to look it up by NI number/ other details?

I'm sure I'm owed some (I know I am for my current job) but notsure where the p60s are from my previous jobs.
Also still not recieved my P45 from previous employer :/
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I had them to hand but they looked all the details up anyway. As long as your employer hasn't been doing anything dodgy then they should be able to look up the previous years for you.

/Salsa
 
I had a similar experience with my first job MANY years ago now, It was easily fixed and I got a cheque for 1200(odd) shortly after... :)

Don't worry, you will get it all back.
 
Jez said:
Worse than that, it means you dont get one at all. Therefore higher rate comes in "sooner" too.

I never understand how people fail to keep on top of their tax either :p
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You don't get any higher rate tax on a BR code, hence basic rate. 0T would give you the rate bands with no personal allowance.
 
Salsa said:
I had them to hand but they looked all the details up anyway. As long as your employer hasn't been doing anything dodgy then they should be able to look up the previous years for you.

/Salsa
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That's great news.

I tried to do it online with HMRC, but they just sent a pack out to fill out details and a 3rd party does it all for you, claiming 17% of whatever's recovered :/
 
hmm, as a student I've been on BR, so I'm guessing they owe me some dosh for the last few years?

Problem is that it was all contract work etc. They took NI numbers and what not, but I don't have a list of all the jobs i have done. Will they still be able to calculate it all?
 
I was on BR for a year also for some reason although I gave my employer my P45 etc.

I had to write to the IR with my payslips for the year and after about 12 months they finally refunded me 1800 quid and about 6 months after that another 600 or so.
 
Yup I was on BR for about 2 years for some reason, then a girl I knew in payroll was checking something for me and asked me if I had another job.

Quick call to the tax office, gave them some dates and what not and they sent me a cheque :)
 
My girlfriend didn't have to chase hers up, received a cheque for £3000 on her birthday last year!
 
So, despite my employment with my previous company ending 25/2/13, tax office still haven't recieved any end of year documents/p45 for me....Awesome....

At least tax lady was pleasant enough, despite not seeming to want to do a whole lot to help..
 
You are not always guaranteed a rebate just because you are on a BR tax code.

If say for the 2012-13 tax year you had a £60k salary and were incorrectly on a BR tax code for the whole year then you would have £12k tax deducted.

However, the total tax deducted should be more than this based on a standard tax code of 810L. Some of the £60k would be subject to higher rate tax @ 40%.

The total tax that should be deducted would have been £13,884, meaning you'd be left owing the tax man £1,884.
 
lee1101 said:
You are not always guaranteed a rebate just because you are on a BR tax code.

If say for the 2012-13 tax year you had a £60k salary and were incorrectly on a BR tax code for the whole year then you would have £12k tax deducted.

However, the total tax deducted should be more than this based on a standard tax code of 810L. Some of the £60k would be subject to higher rate tax @ 40%.

The total tax that should be deducted would have been £13,884, meaning you'd be left owing the tax man £1,884.
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You'd still pay 40% tax at the higher rate, but it would come in sooner as there is no personal allowance though so you'd still be entitled to a rebate.

BR doesn't mean a flat 20% on everything you earn!
 
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