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Tax - TSR guide and questions thread

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    (Original post by ojwk)
    Ah, I was under the erroneous impression that dividends would be taxed the same way as income tax. Once again thanks for the info, as suggested I'm going to take up some formal advice - it seems better to play it safe.
    I think you understand the important point, but just to clarify - dividends are subject to Income Tax, but the rate of Income Tax on dividends is different from that on 'general' (e.g. employment) income and savings income.
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    (Original post by Illusionary)
    I think you understand the important point, but just to clarify - dividends are subject to Income Tax, but the rate of Income Tax on dividends is different from that on 'general' (e.g. employment) income and savings income.
    Yep, sorry I wasn't clear.
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    2 questions

    1- How do I go about reclaiming my tax in April?
    2- Is it normal to have 2 tax codes (?!?!?). One part time job has me on tax code 647L (where I get paid each month without having tax taken off), the other job has me on Basic Rate (where they took off 20% and told me to reclaim in April ). For what it's worth, the first job I've done for nearly 2 years (pharmacy), and the 2nd one (at my school) has been since September (though they have only paid me once, in February, a lump sum... although now they're paying me monthly as they should have initially). School say that pharmacy should have put me on BR too but I've been paid correctly for ages on 647L so I'm not sure what to do..?

    argh basically, disregard ^^that^^. Is it ok to reclaim deducted tax in April despite having 2 tax codes??
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    (Original post by PGtips92)
    2 questions

    1- How do I go about reclaiming my tax in April?
    2- Is it normal to have 2 tax codes (?!?!?). One part time job has me on tax code 647L (where I get paid each month without having tax taken off), the other job has me on Basic Rate (where they took off 20% and told me to reclaim in April ). For what it's worth, the first job I've done for nearly 2 years (pharmacy), and the 2nd one (at my school) has been since September (though they have only paid me once, in February, a lump sum... although now they're paying me monthly as they should have initially). School say that pharmacy should have put me on BR too but I've been paid correctly for ages on 647L so I'm not sure what to do..?

    argh basically, disregard ^^that^^. Is it ok to reclaim deducted tax in April despite having 2 tax codes??
    If you have two jobs, you'll have a separate tax code for each one, and it's usual for the codes to be different. The tax code communicates the amount of your annual tax-free 'personal allowance' that is taken into account when calculating your Income Tax deductions. The 'standard' allowance is currently £6,475 for most people, represented by a code of "647L" (the code which your 'main' job has in your case). As this takes up all of your allowance, nothing is left for allocation against income from your second job, hence the "BR" code, which indicates a nil personal allowance (BR = basic rate, currently 20%, which applies to all of your income from that job).

    Now that a brief summary of the theory is out of the way, the answer to your question is that yes, it's perfectly fine to make a claim for repayment of any overpaid Income Tax if you have two jobs with different tax codes. I assume that you're going to be employed by both employers at the end of the tax year (5 April)? If so, you should receive a form P60 from each employer summarising your income from them during the year, by 31 May (you're legally entitled to receive this, and it should be automatic). Once you have these, just write to your tax office (contact details here) enclosing copies of the forms and requesting a refund.

    For future years, you may find it helpful to read this section of my guide in the TSR wiki. It's possible to split your personal allowance between multiple jobs, so you may be able to avoid paying Income Tax in the first place if your annual income is entirely covered by yor personal allowance.
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    hi, does anyone know the exact phone number to request the statement of earnings from hmrc?
    thanks
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    (Original post by hymal)
    hi, does anyone know the exact phone number to request the statement of earnings from hmrc?
    thanks
    I'd suggest contacting your employer(s) in the first instance, as they should be able to issue a duplicate P60. HMRC may be able to provide a statement of earnings, though (if they have details), in which case you can find contact details for your tax office here.
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    I recieved a cheque from HM Revenue today with a repayment, but for some reason my NI has my surname with an extra letter on the end, which is actually my mum's surname not mine. The cheque therefore has my surname written a bit different on it (with the extra letter). Is this something I should contact the tax office about or is it a whole seperate issue? The bank will probably not accept it :o:
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    (Original post by mel0n)
    I recieved a cheque from HM Revenue today with a repayment, but for some reason my NI has my surname with an extra letter on the end, which is actually my mum's surname not mine. The cheque therefore has my surname written a bit different on it (with the extra letter). Is this something I should contact the tax office about or is it a whole seperate issue? The bank will probably not accept it :o:
    As I understand it, HMRC should be able to update their records separately from your NI records, so I'd suggest contacting them in the first instance. They'll probably want something from you in writing confirming that your name has changed, but give them a call to confirm the best way to provide this to them. There's an online form here which may be quicker to use than writing another letter.

    You'll need to update your NI records separately - call the National Insurance Registration Helpline on 0845 915 7006.
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    (Original post by Illusionary)
    As I understand it, HMRC should be able to update their records separately from your NI records, so I'd suggest contacting them in the first instance. They'll probably want something from you in writing confirming that your name has changed, but give them a call to confirm the best way to provide this to them. There's an online form here which may be quicker to use than writing another letter.

    You'll need to update your NI records separately - call the National Insurance Registration Helpline on 0845 915 7006.
    Ok thanks! Seeing as I've already got the cheque do I have to do it before the end of the tax year which is in like... a week? Or can I wait a bit longer?

    It's not that my surname has actually changed just that
    my NI card has an extra vowel on the end of it which is not how it is on my birth certificate, or even payslips and form that I sent to the tax office, yet they've chosen to write the cheque out according to the NI spelling!

    Thanks
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    (Original post by mel0n)
    Ok thanks! Seeing as I've already got the cheque do I have to do it before the end of the tax year which is in like... a week? Or can I wait a bit longer?

    It's not that my surname has actually changed just that
    my NI card has an extra vowel on the end of it which is not how it is on my birth certificate, or even payslips and form that I sent to the tax office, yet they've chosen to write the cheque out according to the NI spelling!

    Thanks
    It shouldn't matter that the end of the tax year is approaching, as this doesn't act as a deadline for making applications for a refund. Your bank may accept the cheque anyway (there's no harm in trying), so if you want to get the refund sorted as soon as possible you might want to go into a branch and ask if they'll accept it
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    I know this has probably been asked but I cannot understand most of this thread haha.

    Basically I work contracted about £200pm at Waitrose. Last month, I did some overtime, and got my bonus which put me upto near £700 for that month, and I've paid NIC. It happened once before when I did a lot of overtime.

    My total annual income will be about £3k-4k. Can I claim back my NIC?

    Ta

    PS. Please quote, this thread hurt my head so can't subscribe :P
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    (Original post by OrangeStu)
    I know this has probably been asked but I cannot understand most of this thread haha.

    Basically I work contracted about £200pm at Waitrose. Last month, I did some overtime, and got my bonus which put me upto near £700 for that month, and I've paid NIC. It happened once before when I did a lot of overtime.

    My total annual income will be about £3k-4k. Can I claim back my NIC?

    Ta

    PS. Please quote, this thread hurt my head so can't subscribe :P
    no you can't
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    (Original post by OrangeStu)
    I know this has probably been asked but I cannot understand most of this thread haha.

    Basically I work contracted about £200pm at Waitrose. Last month, I did some overtime, and got my bonus which put me upto near £700 for that month, and I've paid NIC. It happened once before when I did a lot of overtime.

    My total annual income will be about £3k-4k. Can I claim back my NIC?

    Ta

    PS. Please quote, this thread hurt my head so can't subscribe :P
    :nah: Deduction of NICs works differently from Income Tax. The threshold for paying NICs applies for each period, rather than for the year as a whole, so no, you can't get a refund on the basis of your overall annual income.
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    Damnnn that sucks :/ seems kinda stupid - oh well!
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    heya, a quick q. I have been overtaxed, so when requesting the refund can I do it myself or do I have to wait for my employer to do it (he is taking his sweet time about it) thanks
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    (Original post by ~conventgirl~)
    heya, a quick q. I have been overtaxed, so when requesting the refund can I do it myself or do I have to wait for my employer to do it (he is taking his sweet time about it) thanks
    I assume that you're currently still employed? The end of the tax year is very soon now, on 5 April 2010, and once the year has ended you'd usually need to make any claim for a refund yourself anyway, rather than getting it through the payroll system.

    Once the year has ended, you should receive a form P60 from your employer summarising your income and tax deductions for the year. You'll then need to write to your tax office (contact details here), enclosing a copy of your P60, and they should be able to arrange for any refund that you're due to be paid.
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    Hello,

    I was just wondering if anyone could answer this question.
    I'm currently in full-time work but have applied for the local uni.
    I will continue to work part-time if I get accepted, but I was just wondering if id be entitled to a tax rebate for the months leading up to september of the new tax year?

    Any help apreciated, or information on who to contact with this query.
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    (Original post by geekbuckley)
    Hello,

    I was just wondering if anyone could answer this question.
    I'm currently in full-time work but have applied for the local uni.
    I will continue to work part-time if I get accepted, but I was just wondering if id be entitled to a tax rebate for the months leading up to september of the new tax year?

    Any help apreciated, or information on who to contact with this query.
    So you will be working full-time april-september, and then part time after that?
    Or you are stopping work in september?

    For the first one, PAYE will sort out the tax automatically.

    For the second, you will need to fill out form P50 and send it to your tax office along with the P45 from when you left.
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    (Original post by geekbuckley)
    Hello,

    I was just wondering if anyone could answer this question.
    I'm currently in full-time work but have applied for the local uni.
    I will continue to work part-time if I get accepted, but I was just wondering if id be entitled to a tax rebate for the months leading up to september of the new tax year?

    Any help apreciated, or information on who to contact with this query.
    If you continue in employment then you won't be able to claim a full refund (if you're eligible for one) until the end of the tax year (on 5 April each year). However, you should find that each time that you're paid your cumulative Income Tax deduction for the year is adjusted on the assumption that your current rate of earnings continues for the entire year, which may mean that you receive at least a partial refund during the year. Being a student does not mean that you don't have to pay Income Tax; if your income is more than your annual tax-free 'personal allowance' (currently £6,475 for most people), you'll pay Income Tax at a rate of 20% on the excess over this allowance.

    However, do check your 'tax code' (shown on your payslips) to make sure that it's correct. The standard code is "647L", and if it's anything else (especially if it's "BR") you may be overpaying Income Tax. Take a look at the guide that I've written for the TSR wiki (linked to in my sig) for details of how to get an incorrect tax code corrected (which should lead to you receiving any refund that is due 'automatically' through the payroll system).
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    I worked as an Xmas Temp from October to January and I got tax taken from my pay. Am I right in thinking you can earn up to a certain amount of money before having to pay tax, and therefore I can claim back the tax that was taken?

    If so, how do I get it back? I've had a look on the internet but can't really find anything to help me...

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