Emergency Tax Length, if at all?

Emergency Tax Length, if at all?

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Discussion

Strachan

Original Poster:

6,419 posts

155 months

Wednesday 21st September 2011
quotequote all
Not sure if this should be in finance, so here goes...

My previous employer did not send me through my previous P45 despite multiple requests and even said I will collect it. Yesterday I filled in a P46 form for my new empoloyer (which is for people with no P45). Will this make me be on emergency tax code for my first pay and if so, how long does it take to clear? (back to standard tax payments).

Many thanks in advance.

MH

1,254 posts

267 months

Wednesday 21st September 2011
quotequote all
Strachan said:
Not sure if this should be in finance, so here goes...

My previous employer did not send me through my previous P45 despite multiple requests and even said I will collect it. Yesterday I filled in a P46 form for my new empoloyer (which is for people with no P45). Will this make me be on emergency tax code for my first pay and if so, how long does it take to clear? (back to standard tax payments).

Many thanks in advance.
Can't you just phone your tax office, explain and give them your expected total annual income then they will send you an up to date tax code.

Difficult bit is getting past the new inland revenue phone system - rest is easy. Don't wait for the P45 - you may never get it.

Mike

Strachan

Original Poster:

6,419 posts

155 months

Wednesday 21st September 2011
quotequote all
MH said:
Can't you just phone your tax office, explain and give them your expected total annual income then they will send you an up to date tax code.

Difficult bit is getting past the new inland revenue phone system - rest is easy. Don't wait for the P45 - you may never get it.

Mike
thanks for this. Not sure of I can do this but I will try. If not, any idea what happens? I could find my old tax code no bother...

Eric Mc

122,053 posts

266 months

Wednesday 21st September 2011
quotequote all
Your old employer should have filed a P45 in resepct of your leaving direct with HMRC. So, in theory, they should already know you have left that old employment.

Your new employer should notify HMRC that you have started with them and also submit the Form P46.

HMRC should have enough to issue you with a correct tax coding for the new employment.

However, until your new employer is formally notified by HMRC of your correct tax coding, they may still have to operate emergency tax on your salary.

Devilstreak

8,088 posts

182 months

Wednesday 21st September 2011
quotequote all
Not necessarily, If you ticked box B on the P46, (This is now my only job, But since 06/04/2011 I have worked elsewhere) then you should be put on tax code 747L W/M1. Which isn't emergency at all. It just isn't cumulative throughout the year.

Then when your p45 finally comes through, They will change it in line with tax paid and correct tax code.

Strachan

Original Poster:

6,419 posts

155 months

Wednesday 21st September 2011
quotequote all
Eric Mc said:
Your old employer should have filed a P45 in resepct of your leaving direct with HMRC. So, in theory, they should already know you have left that old employment.

Your new employer should notify HMRC that you have started with them and also submit the Form P46.

HMRC should have enough to issue you with a correct tax coding for the new employment.

However, until your new employer is formally notified by HMRC of your correct tax coding, they may still have to operate emergency tax on your salary.
Thanks for prompt response.

My new employer have done this and the P46 was submitted to the accountant to complete it (I think) / or the HMRC.

I will find out a week on Friday as I know what tax I should pay by using salary calculator...

Devilstreak said:
Not necessarily, If you ticked box B on the P46, (This is now my only job, But since 06/04/2011 I have worked elsewhere) then you should be put on tax code 747L W/M1. Which isn't emergency at all. It just isn't cumulative throughout the year.

Then when your p45 finally comes through, They will change it in line with tax paid and correct tax code.
That was the box I ticked. Is a tax code 747 likely to be less or more tax than previously? My new job pays more, and so I am hoping I don't end up as well off as I was before (net) for a few months until it sorts itself out.

Also, I am paid 1 month in lieu on my last job so will be paid from them on fri and new employer later next week. This is why they haven't sent P45 I think (that's what they just told me)... odd.

Eric Mc

122,053 posts

266 months

Wednesday 21st September 2011
quotequote all
747L is the standard code for 2010/11.

What code were you on with the previous employer?

Strachan

Original Poster:

6,419 posts

155 months

Wednesday 21st September 2011
quotequote all
Eric Mc said:
747L is the standard code for 2010/11.

What code were you on with the previous employer?
Ok, I hope it works out then...we shall see. Will call the tax office later.
Think my code was 147L

Strachan

Original Poster:

6,419 posts

155 months

Wednesday 21st September 2011
quotequote all
Just spoke to some chap at HMRC. Quite professsional bunch
He said because I have selected B on the P46 form I should thus be on the correct tax code by my employer automatically.

MH

1,254 posts

267 months

Wednesday 21st September 2011
quotequote all
Job done, hopefully.
If you've had a change in your benefits (like private health care etc) then you will need to make sure that all works its way through - but it's no big deal really.
Mike

Strachan

Original Poster:

6,419 posts

155 months

Wednesday 21st September 2011
quotequote all
MH said:
Job done, hopefully.
If you've had a change in your benefits (like private health care etc) then you will need to make sure that all works its way through - but it's no big deal really.
Mike
Thanks for that. Would never have phoned if you had not of said. See what happens next week. Private health care is in both jobs.

Eric Mc

122,053 posts

266 months

Wednesday 21st September 2011
quotequote all
Strachan said:
Eric Mc said:
747L is the standard code for 2010/11.

What code were you on with the previous employer?
Ok, I hope it works out then...we shall see. Will call the tax office later.
Think my code was 147L
147L means that HMRC were not giving you £6,000 of Personal Tax Allowances you would normally have been entitled to. Why would that be?

Jimslips

Original Poster:

6,419 posts

155 months

Thursday 29th September 2011
quotequote all
No idea but for some reason I have got back a new tax reference which has a reference code (3 numbers/ two letters / five numbers ) and a national insurance number which has 3 letters and 6 numbers and my previous one had 5...

Simply put, they have added a 9 for some reason. Very strange. Will speak to them when they open.

Devilstreak

8,088 posts

182 months

Thursday 29th September 2011
quotequote all
Sounds like they have given you your employers PAYE reference number rather than your tax code.

Jimslips

Original Poster:

6,419 posts

155 months

Thursday 29th September 2011
quotequote all
Devilstreak said:
Sounds like they have given you your employers PAYE reference number rather than your tax code.
It's a little slips and says "new tax reference: your income tax recards are now held under the reference shown above, please quote the full reference when you write or call"

It also has a little box saying reference with a code:
888/ba/50770 (Obviosly with difference numbers and letters! along with a code inside 8 boxes below it which is almost identical to my national insurance number with ONE different digit.


Eric Mc

122,053 posts

266 months

Thursday 29th September 2011
quotequote all
When you are being taxed under PAYE, your tax district tends to be the tax ditrict that handles your employer's PAYE affairs. Therefore, if you change employers, there is a good chance your tax district and tax reference will change.

Tax districts have three digit codes, and they usually preface the actual tax reference itself. So, if your old employer had a PAYE reference of 789/1256D and your new emploer has a PAYE reference 123/5431F, then YOUR tax reference will change from 769/1256D to 123/5431F

HMRC do not always make life simple for people in that there are other types of reference numbers they will sometimes refer to as a "tax reference" number as well.

If a person completes self assessment tax returns, they will have another tax reference which is called the UTR (Unique Tax Reference). This is just a string of numbers such as - 123456789O

Finally, they can also muddy the waters by asking you for your National Insurance number, which they also sometimes refered to as a "tax reference", even though technically that is not what it is.

NI numbers look like AB 12 34 56 D

Jimslips

Original Poster:

6,419 posts

155 months

Thursday 29th September 2011
quotequote all
Eric Mc said:
When you are being taxed under PAYE, your tax district tends to be the tax ditrict that handles your employer's PAYE affairs. Therefore, if you change employers, there is a good chance your tax district and tax reference will change.

Tax districts have three digit codes, and they usually preface the actual tax reference itself. So, if your old employer had a PAYE reference of 789/1256D and your new emploer has a PAYE reference 123/5431F, then YOUR tax reference will change from 769/1256D to 123/5431F

HMRC do not always make life simple for people in that there are other types of reference numbers they will sometimes refer to as a "tax reference" number as well.

If a person completes self assessment tax returns, they will have another tax reference which is called the UTR (Unique Tax Reference). This is just a string of numbers such as - 123456789O

Finally, they can also muddy the waters by asking you for your National Insurance number, which they also sometimes refered to as a "tax reference", even though technically that is not what it is.

NI numbers look like AB 12 34 56 D
THnak you for cllarification, I just don't know if I need to be calling them to rectify just yet

The note thing has a reference bos with two lines, first is the reference, second is something that looks very much like a national insurance number

AB 08 92 64 D (if this was the code on my last payslip, the new one they sent me on this sheet is:
AB 09 92 64 D

Very odd. Could be typo error or something, see what the consequences are of it tomorrow...


The document was issued by PAYE, Newcastle.

Eric Mc

122,053 posts

266 months

Thursday 29th September 2011
quotequote all
Jimslips said:
THnak you for cllarification, I just don't know if I need to be calling them to rectify just yet

The note thing has a reference bos with two lines, first is the reference, second is something that looks very much like a national insurance number

AB 08 92 64 D (if this was the code on my last payslip, the new one they sent me on this sheet is:
AB 09 92 64 D

Very odd. Could be typo error or something, see what the consequences are of it tomorrow...


The document was issued by PAYE, Newcastle.
Those numbers are nothing to do with Tax Codes. That number is a National Insurance number. It should be your personal NI number. Do you have a plastic NI card (you should have had one since you were 16)? Check the number on the card with the number on the letter you received from HMRC to make sure that the number on the letter matches your NI card.

As I said earlier, HMRC siometimes refers to your NI Number as a "Tax Reference".

They started doing this when the old Inland Revenue and the Contributions Agency merged in 1999.

Jimslips

Original Poster:

6,419 posts

155 months

Thursday 29th September 2011
quotequote all
Eric Mc said:
Those numbers are nothing to do with Tax Codes. That number is a National Insurance number. It should be your personal NI number. Do you have a plastic NI card (you should have had one since you were 16)? Check the number on the card with the number on the letter you received from HMRC to make sure that the number on the letter matches your NI card.

As I said earlier, HMRC siometimes refers to your NI Number as a "Tax Reference".

They started doing this when the old Inland Revenue and the Contributions Agency merged in 1999.
Wires crossed, my fault.

It is my national insurance number but it is one digit different from the one on my NI card.

Eric Mc

122,053 posts

266 months

Thursday 29th September 2011
quotequote all
That definitely seems like an error. You do need to sort it out with them. If you don't, your NI contributions (nothing to do with tax) may be allocated to the wrong NI number - which coyuld have repurcussions for you years down the line.