Help understanding Tax codes

Schizophonic · 22 Dec 2010 at 21:49

Current under BR, and seems to have taken a large chunk of my wages. Looking from google, it means

"Is used when all your income is taxed at the basic rate - currently 20 per cent (most commonly used for a second job or pension but may also be used if you’ve started a new job, don’t have a form P45 and haven’t completed a form P46 before your first pay day)"

I've started a new job and this is my first pay slip but do i get to claim any of that back or anything?

Maccy · 22 Dec 2010 at 21:51

You need to fill out the relevant form from your employer - I can't remember which P form it is though. Ask them and they should provide it for you, you fill it in and they fill in the rest and send it off.

You should be put onto a new tax code and you'll either get the Basic Rate tax refunded, partially refunded or not refunded and you'll pay less/no tax until it finally works itself out.

Gary* · 22 Dec 2010 at 21:51

Just ring Inland Revenue and explain the tax code, they'll sort it over the phone within minutes and put you on the correct tax code. Any extra tax you have paid will be reimbursed in the next pay check.

Hope this helps

Edit: This is what I did, got a nice tidy sum after 7 months of being on BR!

neodude · 22 Dec 2010 at 21:51

Yeah, you will get whatever of your tax free allowance has been taken up until you get your tax code sorted back as a tax rebate at the end of the finacial year.

csmager · 22 Dec 2010 at 22:27

Gary* said:
Just ring Inland Revenue and explain the tax code, they'll sort it over the phone within minutes and put you on the correct tax code. Any extra tax you have paid will be reimbursed in the next pay check.

Would be quicker to fill in the correct forms for your employer (P46, unless you have a P45 for the current tax year to hand over) - it's them who deduct the tax, not HMRC.

I'd only contact HMRC if HMRC have specifically sent you (and therefore your employer) a coding notice that says 'BR' and you believe it's incorrect.

Gary* · 22 Dec 2010 at 23:02

csmager said:
Would be quicker to fill in the correct forms for your employer (P46, unless you have a P45 for the current tax year to hand over) - it's them who deduct the tax, not HMRC.

I'd only contact HMRC if HMRC have specifically sent you (and therefore your employer) a coding notice that says 'BR' and you believe it's incorrect.

I got mine on my next pay slip, was quite happy with the turnaround time.

zangetsu19 · 22 Dec 2010 at 23:06

Go through your employer first do the forms, thats the first step otherwise HMR will just do the same after you been on the phone for 20 mins

secretspy · 22 Dec 2010 at 23:08

Sounds like you do need to fill in a P46. You can obtain one (or should be able to) from your employer. I wouldn't bother to go to HMRC as it would probably take longer. (Particularly with post being slow at the moment as they would write to employer to confirm the change.)

If you fill out the form, hand it back to employer they can change the tax code etc. Then any incorrect tax deducted will be reimbursed to you.

From what I've overheard in the office we were told some time ago that we have to start everyone one BR now and then obtain the relevant form from the employee.

csmager · 22 Dec 2010 at 23:09

Gary* said:
I got mine on my next pay slip, was quite happy with the turnaround time.

Fair enough but, as the poster above also states, they'll be of no use to you if it's your own fault.

Pudney · 22 Dec 2010 at 23:23

Now is getting on to the worst time of year to contact HMRC for personal stuff, Self Assessment deadline is just over a month away, their workload will be increasing dramatically!

To sum, go to your employer.

UnworthyBean · 22 Dec 2010 at 23:28

Apologies for hijacking but i have a similar question.

Ive been put on BR, filled in a p46 as i didnt have my p45 yet, got taxed 20% but have now got and handed in my p45. Do i still have to ring up or will it all be sorted? My employer didnt seem to know.

csmager · 22 Dec 2010 at 23:32

UnworthyBean said:
Apologies for hijacking but i have a similar question.

Ive been put on BR, filled in a p46 as i didnt have my p45 yet, got taxed 20% but have now got and handed in my p45. Do i still have to ring up or will it all be sorted? My employer didnt seem to know.

I suggest your employer reads the manuals then, as they have all the information they need to tax you correctly without HMRC getting involved. With the information on the P45, it should result in you being taxed the right amount over the course of the whole tax year.

If you filled in a P46, you would only have been taxed at BR if you ticked the box stating it was your second job. Unless it was after your pay day, or your employer messed up.

muon · 22 Dec 2010 at 23:34

Regarding self assessments. The deadline is before the actual tax year ends, so are you supposed to guess?

csmager · 22 Dec 2010 at 23:36

ghost101 said:
Regarding self assessments. The deadline is before the actual tax year ends, so are you supposed to guess?

No. It's 10 months after the tax year ends. Not 2 months before it finishes!

muon · 22 Dec 2010 at 23:37

csmager said:
No. It's 10 months after the tax year ends. Not 2 months before it finishes!

Ah ok. A lot more reasonable.