Tax question - what to expect
Discussion
Morning all.
I took redundancy in October and after a welcome break I start a new role next week. Previous jobs salary was in the upper bracket so lost the personal allowance from the start of the year, which has meant I've paid my tax for the year already even with adding the additional income that will come in March.
Is there any way to get HMRC to quickly change my tax code for the year to reflect this so the income for March is essentially tax free, or am I at a point now where they'll continue to tax me at the higher rate for March and I can expect a substantial rebate (£10k+) at some point over the next few months once the tax year ends?
Thanks in advance for any replies.
I took redundancy in October and after a welcome break I start a new role next week. Previous jobs salary was in the upper bracket so lost the personal allowance from the start of the year, which has meant I've paid my tax for the year already even with adding the additional income that will come in March.
Is there any way to get HMRC to quickly change my tax code for the year to reflect this so the income for March is essentially tax free, or am I at a point now where they'll continue to tax me at the higher rate for March and I can expect a substantial rebate (£10k+) at some point over the next few months once the tax year ends?
Thanks in advance for any replies.
What tax code is on the P45?
This is the code your new employer must use. They will also use the accumulated totals for pay and tax.
Your new employer will tax you at the marginal rate that applies to your accumulated income for the year, probably 40%, this may result in a reduction of the tax due in March, dependent on the numbers.
You could log onto the HMRC website and view your current year PAYE data. This should have been updated with the leaving information from your previous employer. You may be able to request a tax code change through the site, however, if often takes more than 4 weeks so unlikely to be of benefit.
This is the code your new employer must use. They will also use the accumulated totals for pay and tax.
Your new employer will tax you at the marginal rate that applies to your accumulated income for the year, probably 40%, this may result in a reduction of the tax due in March, dependent on the numbers.
You could log onto the HMRC website and view your current year PAYE data. This should have been updated with the leaving information from your previous employer. You may be able to request a tax code change through the site, however, if often takes more than 4 weeks so unlikely to be of benefit.
Thanks for that.
Tax code on my P45 is 0T. I've paid 40% PAYE on all of my earnings so far this tax year despite being well short of the threshold where my personal allowance is lost.
Start the new role Monday (via umbrella company) and will be invoicing weekly so assume I'll continue paying 40% and will have to get it all back via the P800 process?
Tax code on my P45 is 0T. I've paid 40% PAYE on all of my earnings so far this tax year despite being well short of the threshold where my personal allowance is lost.
Start the new role Monday (via umbrella company) and will be invoicing weekly so assume I'll continue paying 40% and will have to get it all back via the P800 process?
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