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robskinner said:
When are you starting, you will likely pay almost no tax in 2012-13 once they sort your tax code.
Its split monthly, but HMRC work annually they do not care if you earn £1000 per month, or £12000 in April and take the rest of the year off. Obviously they work in arrears but come the end of the tax year you should be able to sort out a tax rebate.
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I'm confused, so I won't get the tax took out each month?

I start on 7th January providing I do actually get the job, it's supposed to be 7 quid 50 an hour over 35 hours a week.

Why won't I get taxed at first? I'm on 810L which is apparently emergency tax code too? So I'll get like 8100 tax free no?

So am I going to be left skint by the tax man and have to claim it back in one big lump sum at the end of the year?
 
As 810 is the emergency code you'll be taxed the correct (I assume, not knowing your previous or current taxable benefits) sum for someone earning over the threshold regardless.

If you work under the personal allowance sum the rest of the tax year and haven't worked at all beforehand this tax year you'll likely get a rebate of some sort, as you will not have made enough money to be taxed on (though on a monthly basis your employer will remove this as if your monthly salary x 12 = total tax years earnings) - this will only happen some time after year end. You'll get a cheque or tax credits if so, though you'll likely need to start the process off by calling them say July/September next year otherwise it'll take some time.
 
willhub said:
I'm confused, so I won't get the tax took out each month?

I start on 7th January providing I do actually get the job, it's supposed to be 7 quid 50 an hour over 35 hours a week.

Why won't I get taxed at first? I'm on 810L which is apparently emergency tax code too? So I'll get like 8100 tax free no?

So am I going to be left skint by the tax man and have to claim it back in one big lump sum at the end of the year?
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Emergency tax takes tax off the whole amount iirc. At basic rate on everything.

Speak to HMRC directly.

There is also something to do with month 1, my guess is you will be on that as I think people coming from JOb Centre are. So you are taxed as if its month one (April) no matter what month you actually start work in. If your on cummulative the number of months so far in the year is taken as 12ths of you allowance and applied to you cummulative earnings, but you will almost definately not be on this.

At the end of the tax year you will almost certainly be due tax back. I suggest as soon as you start work you send HMRC a copy of the P45 from Job centre and ask them to put on file for year end. The Job centre are terribly bad at passing info to HMRC and as such HMRC will see a gap in the tax year and hence will not process a refund as they do not know what you were doing for the missing months.

Its possible you can get the tax man to put you on cummulative if you get the details to them of what you have been erning all year (Job seekers counts as income) and persuade them its easier for all. Your employer would then recalculate you earning each month and in effect your unlikely to pay any tax in 2012/2013 tax year. They may however just say no, but im oits worth a try as you get the mone a lot quicker than dealing with it after the tax year ends.
 
MadMossy said:
Tax codes are changing for next year as well, the allowance will increase to 9455.

£50/pw on food is more than enough as a single person you'll probably be spending closer to £25/pw on food, unless your a fussy eater and demand salmon and steak daily!
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As will the NI allowances. They are also adjusted upwards reducing the NI cost to the OP
 
robskinner said:
Emergency tax takes tax off the whole amount iirc. At basic rate on everything.
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No, the 'Emergency' tax code is just the normal single persons code, so 810L atm, on a Week 1/Month 1 non-cummulative basis, so you still get ~£675 (1/12th) tax-free allowance each month.
 
You will be on basic rate tax if your P45 is not processed by your employer before payroll cut off.

If it is you'll be on the code that your P45 says.

Also do what robskinner says once you have started.

If you don't you'll get taxed on your income then you'll get get sent a cheque between June and August. You may have to call to get it pushed through though.
 
Freakbro said:
No, the 'Emergency' tax code is just the normal single persons code, so 810L atm, on a Week 1/Month 1 non-cummulative basis, so you still get ~£675 (1/12th) tax-free allowance each month.
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Yep your right seems they changed it at some point as I know years ago when I hadn't got a P45 in time I was taxed on the whole months salary at 25% (what was the basic tax rate then), following month I got an adjustment to correct and paid naff all tax that month.
 
So if at first I don't pay much tax I could get like £1100?

What will putting on file for year end do I'm confused, do I send the P45 to HR or something in the company or have to post it to HMRC directly?
 
Putting the P45 on file for year end will just mean that HMRC will be able to look at your jobseekers allowance and add that to the rest of the years salary, calculate the tax you have paid against the tax you should have paid then give you a rebate.

You will be deducted on a monthly basis immediately, but as mentioned before you will almost certainly be due a significant portion of this back at tax year end.

Don't worry about it for now, just remember to contact them after April 13, not sure where you've taken the £1100 figure from but I am assuming that's 1 years worth of income tax for your salary - you won't get this back as you won't have paid it. They will rebate you what you have actually overpaid i.e start in january and taxed at normal rate = 4 months deductions = £366 potential rebate (if your £1100 is correct)
 
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You'll be taxed straight away on your earnings. Initially if you pay too much tax due to being on Emergency Tax etc then any overpayment will be adjusted over the year to level things off. (e.g. you may pay slightly less each month in tax if you over pay)

You give one part (the Employers part) of your P45 to you new employer, you don't send it to HMRC.

On a side note, I'm getting a tax rebate as I've over paid tax by £1,100 in 2008-2009 & 2010 - 2011. So yes, HMRC get it wrong as do employers.
 
The issue with HMRC is they do not get good communication from teh department that deals with job seekers.
You can get round this but completing the gap in your employment history, basically prove your earnings to the for the months up until this new job.

You write a letter such as "Dear Mr Tax man, please find attached my P45 from local job office, this was my only earnings from tax year 2012/13. I have just started a new job for an employer xxxx who will submit a yearly P60. Can you please arrange for a refund of overdue tax once you receive this P60. Thanks Willhub

As soon as you start with new employer send the p45 confirming job seekers paid to HMRC. Then wait a few months for your refund.

Or you can ask them to adjust your tax code, but with how close you are to the end of the tax year it may make little difference to the timing. Its however a lot easier to just get the tax back in your wages than a cheque/transfer from HMRC
 
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