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Tax - TSR guide and questions thread

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Applying to Uni? Let Universities come to you. Click here to get your perfect place 20-10-2014
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    (Original post by Illusionary)
    Following the end of the tax year (5 April), you should receive a form P60 from you current employer summarising your income during the tax year, and you can then reclaim any overpaid Income Tax using this as documentary evidence of income. You don't need to wait until you leave your new job. However, did you give your previous P45 to your new employer? If so and it's been properly processed, you should already have received any refund that you're due through the payroll system (along with your pay).

    If you didn't give this to your new employer (in future, remember to do so)then you may need to send both your old P45 and the P60 that you'll receive from your new employer to your tax office when requesting any refund.
    Thank you
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    Thank you both for your quick replies.
    I have recieved a letter saying my tax code has been changed to br for this coming tax year.
    So when i start uni ill inform my boss about my tax code then i should recieve a refund on the tax?
    Is this correct?
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    (Original post by geekbuckley)
    Thank you both for your quick replies.
    I have recieved a letter saying my tax code has been changed to br for this coming tax year.
    So when i start uni ill inform my boss about my tax code then i should recieve a refund on the tax?
    Is this correct?
    A "BR" code doesn't sound right to me, unless you have two jobs. Give your tax office a call and query this, as I'd usualy expect it to be "647L" unless you're aware of any other taxable income/benefits. A BR code effectively gives you a nil personal allowance (rather than the standard £6,475), so you'd be paying Income Tax at 20% on all of your income.

    Once you're on the correct tax code, the total amount of your Income Tax deductions for the year should automatically self-correct (either up or down) each time that you're paid. Only if you leave employment completely during the year would you usually look to claim a refund outside of the 'Pay As You Earn' (PAYE) system under which employers collect Income Tax directly from employees' pay, to be paid across to HMRC.

    I'm not sure if you're suggesting that you might be due a refund for the current tax year (which ends next Monday, 5 April). If you believe that you have overpaid Income Tax for the year, then you should write to your tax office enclosing your form P60 (which you should receive from your employer if you're employed at the end of the year) or P45 (if you left a job during the year) and requesting the refund.
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    No, now that you mention it doesnt. I shall contact the tax office asap. As i only have one job.

    Im not suggesting id be due a refund on my tax for this year because as far as i know i am on 647L. The letter states it will change to BR at the start of the new tax year.
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    I'm confused (when am I not)

    I'm filling in a R85 which is going fine but it's asking me for my pay from employment. What's the best way to work it out considering I don't have fixed hours I earn £200-£300 a month but have only had a job since October?

    Also am I going to have fill one of these in for each of my bank accounts?
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    (Original post by letsdothetimewarpagain)
    I'm confused (when am I not)

    I'm filling in a R85 which is going fine but it's asking me for my pay from employment. What's the best way to work it out considering I don't have fixed hours I earn £200-£300 a month but have only had a job since October?

    Also am I going to have fill one of these in for each of my bank accounts?
    http://www.hmrc.gov.uk/forms/R85.pdf

    Unless I'm missing something, I don't see a question on there asking for your total pay - you just have to declare that your total annual income is below your annual tax-free allowance (which will most likely be £6,475 at the moment). If you do have to give a figure, a reasonable estimate should be fine (perhaps take the average of the past few months?), though putting a higher figure shouldn't do any harm if you're unsure. Underdeclaring income would be when you might have problems, but so long as you can explain what you're doing you should be fine.

    You will have to fill in an R85 for each account that you want to get tax-free interest on, I'm afraid.
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    (Original post by Illusionary)
    http://www.hmrc.gov.uk/forms/R85.pdf

    Unless I'm missing something, I don't see a question on there asking for your total pay - you just have to declare that your total annual income is below your annual tax-free allowance (which will most likely be £6,475 at the moment). If you do have to give a figure, a reasonable estimate should be fine (perhaps take the average of the past few months?), though putting a higher figure shouldn't do any harm if you're unsure. Underdeclaring income would be when you might have problems, but so long as you can explain what you're doing you should be fine.

    You will have to fill in an R85 for each account that you want to get tax-free interest on, I'm afraid.
    Yeah, I've just realised nationwide sent me two things, one of which isn't the official form but is meant to make it idiot proof for filling in the form
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    I have done a blog on Income Tax that I have tried to make simple and understandable. Understanding the intricasies of income tax is childsplay when a few basic rules are understood. No kidding!

    The main issues for students are the BR tax code which many are on in error and NI which students can get an exemption certificate for if they are only in short term emplyment. For a full explanation on income tax that will stay with you for life can be found at the following link.

    http://taxcodesexplained.blogspot.com/
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    Well done to you for this mammoth task you have undertaken.

    I also did a similiar thing which is more conversational in style. I would particularly draw students to understanding the BR code, as a lot end up on this code by mistake. Also I have written mine to try and stop the tax problems before they happen. Take a look at mine, you can find it at the following blog: http://taxcodesexplained.blogspot.com/
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    (Original post by sillygilly)
    I have done a blog on Income Tax that I have tried to make simple and understandable. Understanding the intricasies of income tax is childsplay when a few basic rules are understood. No kidding!

    The main issues for students are the BR tax code which many are on in error and NI which students can get an exemption certificate for if they are only in short term emplyment. For a full explanation on income tax that will stay with you for life can be found at the following link.

    http://taxcodesexplained.blogspot.com/
    Surely no one, even students, are exempt from national insurance if they earn over the threshold in any week.
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    (Original post by hypocriticaljap)
    Surely no one, even students, are exempt from national insurance if they earn over the threshold in any week.
    Agreed. In the UK, everyone older than 16 and below the state pension age will be liable to pay NICs if they earn more than the weekly/monthly threshold (currently £110 and £476 respectively).
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    (Original post by hypocriticaljap)
    Surely no one, even students, are exempt from national insurance if they earn over the threshold in any week.
    Exactly.

    I would really like to see some evidence of this.
    I have never heard of this exemption certificate, more interestingly neither has HMRC.
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    Is it even possible? I dont have any wage slips or anything either?
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    I'm sure it is. If I remember rightly I just rang them and they said to send them a letter explaining. I did thinking I'd get a few hundred pounds back, but NO! They turned it on me and said I've been dodging tax and I owed them hundreds back. They took what was mine and I still owe £60! Suppose you can't fight the tax system though!
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    (Original post by xSara.loux)
    Is it even possible? I dont have any wage slips or anything either?
    Call your tax office (contact details here), as they may have records of your income (though no guarantees). Do you have no evidence at all of your income?

    I'd also suggest getting in touch with your employer as they may be able to provide you with details that you could use to support a claim for a refund.
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    Yes. I did it all over the phone, and I even got an apology and then a letter explaining the procedure what would happen and that they might need to make a statement. They didn't in the end (but that was slightly different because that was my company taking tax from my wage, but it turned out HMR had received **** all, in fact, I wasn't even on the system after 6 months working there :erm:).
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    (Original post by xSara.loux)
    Is it even possible? I dont have any wage slips or anything either?
    Have you ever received a P45 or wage slip at all, and lost them?
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    (Original post by MulderMan)
    Have you ever received a P45 or wage slip at all, and lost them?
    No.
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    (Original post by xSara.loux)
    No.
    Definitely get in touch with your employer then if you've not been given these in the first place, as you have a legal right to receive these - and potentially HMRC may not have been passed details of your pay either. How do you know that you've had tax deducted from your pay if you've not had any payslips?
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    Because I knew how much i was on an hour and how much I was earning. And everyone else i started with has had to change their code so they arent taxed but I was only there a few months.
    I think I didnt receive them because I moved house and no longer live in the area.

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