This discussion is now closed.

Check out other Related discussions

Tax

Reply 180

Syrokal

You're better of handing in a p45 if you've got it than a p46

Reply 181

timreynolds

7

Syrokal

You're better of handing in a p45 if you've got it than a p46

Whats the difference? I handed in one saying that im not on job seekers benfits, i'm in full time education and earn less than £3000 grand a year or something...

Reply 182

Syrokal

A p45 is what an employer gives you when you finish a job and has details of what you earned and how much tax you paid. if it's not on a week or month 1 basis the next employer just carries on deducting the right tax.

Reply 183

Illusionary

19

timreynolds

Does anybody know how long it takes to recieve tax back after you have changed your tax code on a P46 form? The friggin Government owe me £200 lol!

Tim

After handing in the P46 to your employer, they should then have the information that they need to put you on the correct tax code. You'll then get a refund of any overpaid Income Tax through the payroll system the next time that you're paid. If you've not had a job since 6 April 2009 then you'll need to complete a P46 regardless of whether you were given a P45 from an earlier job.

However, if you're paid at a rate that would mean that you would exceed your tax-free personal allowance (currently £6,475 for most people) if that rate continued for the rest of the tax year (i.e., until 5 April 2010) then the way that 'Pay As You Earn' (PAYE) system that is used to collect Income Tax works may (depending on your exact circumstances) mean that you will continue to have tax deducted and then have to reclaim this when you leave the job.

Oh, and in case you're not aware, being in full-time education has no effect on whether you should be paying Income Tax. :smile:

Reply 184

timreynolds

7

Illusionary

After handing in the P46 to your employer, they should then have the information that they need to put you on the correct tax code. You'll then get a refund of any overpaid Income Tax through the payroll system the next time that you're paid. If you've not had a job since 6 April 2009 then you'll need to complete a P46 regardless of whether you were given a P45 from an earlier job.

However, if you're paid at a rate that would mean that you would exceed your tax-free personal allowance (currently £6,475 for most people) if that rate continued for the rest of the tax year (i.e., until 5 April 2010) then the way that 'Pay As You Earn' (PAYE) system that is used to collect Income Tax works may (depending on your exact circumstances) mean that you will continue to have tax deducted and then have to reclaim this when you leave the job.

Oh, and in case you're not aware, being in full-time education has no effect on whether you should be paying Income Tax. :smile:

Thanks a lot- I have sorted it out now! Tim

Reply 185

eee-tee

As a student I don't have a job ATM but over the summer I got paid for some work and got taxed at the basic rate. Ho do i go about claiming back the tax, do I have to wait until the end of the tax year, and what is the process?
Cheers X

Reply 186

dhr90

18

eee-tee

As a student I don't have a job ATM but over the summer I got paid for some work and got taxed at the basic rate. Ho do i go about claiming back the tax, do I have to wait until the end of the tax year, and what is the process?
Cheers X

You should get assigned a tax code based on how much you worked and if you are likely to go over the minimum tax band in this financal year. You could ring up the people and ask what to do, or just wait for the end of the year.

It may be worth you getting a proper code if you will work in the same place again in other term holidays as it will save future hassle.

When it comes to it just go to your local tax office (can't remember the proper name for it) and ask for a form to claim tax back. Mine always took a couple of weeks to be processed.

Reply 187

eee-tee

Morning, and thanks for the reply
I do have a tax code, but at the time didn't have a P45 to give them, so that is why I was taxed I assume.
So I can go ahead and claim for it now, or do i need to wait until end of 09/10 year?

Reply 188

hypocriticaljap

2

If you sign a declaration that you will not work again this tax year you can get it back now. Do you intend to work again before the end of the tax year?

Reply 189

Insanespana

1

Do you have a P45 now? If not, ask your employer for a P46 form (for people without P45s) or print one off the HMRC website (search P46) on the other hand there's also a tax exempt form for students on HMRC (a P38(S)) which allows you to earn up to £6500 odd without paying tax, as it's your personal allowance.

Fill in whichever form you like, and give it to your employer who should then sort out your tax code and pay you back any tax you're owed.

Reply 190

Illusionary

19

eee-tee

Morning, and thanks for the reply
I do have a tax code, but at the time didn't have a P45 to give them, so that is why I was taxed I assume.
So I can go ahead and claim for it now, or do i need to wait until end of 09/10 year?

Right, first thing to say is being in full-time education has no effect on whether you should be paying Income Tax.

Now, every individual has a certain amount of annual income that they can receive before having to pay any Income Tax, called the 'personal allowance'. This changes each year, but is currently at £6,475. If your total income does not exceed this, you shouldn't have to any Income Tax in the year.

However, the method by which Income Tax is collected from employees (known as 'Pay As You Earn', or PAYE), works on a cumulative basis, so you aren't allocated your full personal allowance from the beginning of the year. Rather, it's spread across the year so that you'll pay approximately the same amount of tax each time that you're paid, assuming constant earnings. This can result in overpaying your Income Tax liability if you only work for part of the year.

You don't mention what your tax code is, but seeing as you didn't give your employer a form P45 or P46 when you started with them, you were probably put on a "BR" code, taxing all of your income at the basic rate (20%) without recognising any personal allowance. This is most likely incorrect, and as you say would be the reason for no personal allowance being recognised.

You now have two options to reclaim any overpaid Income Tax before the end of the tax year. First, if you intend to work again before 6 April 2010, then by completing a form P46 your new employer should be able to put you on the correct tax code (most likely "647L[noparse]")[/noparse] and you'll get the repayment through the payroll system as an adjustment to the total amount you've paid during the year.

Alternatively, you can complete a form P50 and send this to you tax office (contact details here) if you don't intend to work again before the end of the tax year. You'll need to send a copy of your P45 with the form.

A couple of other points to note. First, you can't reclaim any National Insurance Contributions (NICs) that you've paid during the year, as the thresholds at which you start paying NICs apply for each pay period rather than annually. NICs are due from employees at 11% on weekly income in excess of £110.

Finally, if you're a student working only during holiday periods, and expect your total annual income to be covered by your personal allowance, then HMRC have an arrangement whereby employers need not deduct any Income Tax from your earnings. You would need to complete a form P38(S) and give this to your employer to benefit from this concession.

Reply 191

eee-tee

There is a chance I may be working again this financial year (it is course-related not part time work etc) so I fill in form P46. But if i find that April '10 comes around and i haven't worked, is it still form P50 that i would complete, or is there another one?

Reply 192

Illusionary

19

eee-tee

There is a chance I may be working again this financial year (it is course-related not part time work etc) so I fill in form P46. But if i find that April '10 comes around and i haven't worked, is it still form P50 that i would complete, or is there another one?

You can use the P50 to apply for a refund if you've been unemployed for a period of four weeks, even if you do expect to return to work during the year. However, if you prefer to wait, you may find that you don't need to complete a form depending on the records that HMRC have of your income, etc. (I'd generally expect that they will need more details, however).

I'd suggest giving your tax office a call in the first instance to check exactly what they require from you to process a refund. If they need further details, you're best just to write a quick letter to them explaining your request, and include a copy of either your P45 or P60.

Have a read of this page on direct.gov for more details.

Reply 193

ViolatedTreason

13

i have a part time job, that earns me a pittance of £4411 PA, but i am on a PAYE scheme. i was wondering if i am entitled to any tax rebate at the end of the financial year?

i am earning well below the personal allowance of £6k+ so from what i can tell, i shouldnt be taxed on it.

i'm confused. can anyone who knows about tax law give me a hand here

Thanks.

Reply 194

TheTallOne

18

Since you are earning below the personal allowance, then surely PAYE will calculate the tax you have to pay as 0 and nothing will be taken off under income tax.

However, you may have to pay National Insurance.

Reply 195

gracie88

14

ViolatedTreason

i have a part time job, that earns me a pittance of £4411 PA, but i am on a PAYE scheme. i was wondering if i am entitled to any tax rebate at the end of the financial year?

i am earning well below the personal allowance of £6k+ so from what i can tell, i shouldnt be taxed on it.

i'm confused. can anyone who knows about tax law give me a hand here

Thanks.

Have you just started working there? Could be emergency tax if you have...

Reply 196

ViolatedTreason

13

i have been there in the past, on a temp basis, but recently moved permanently, its for Walsall hospitals NHS Trust, so not a little company.

even on my Py slip it registers that my full time salary= £13,332, PT/Actual salary: £4411.00

i understand that i have to pay NI and also a damned pension at the minute, which will shortly be cashed in until i'm earning enough to justify keeping it.

Reply 197

Illusionary

19

ViolatedTreason

i have been there in the past, on a temp basis, but recently moved permanently, its for Walsall hospitals NHS Trust, so not a little company.

even on my Py slip it registers that my full time salary= £13,332, PT/Actual salary: £4411.00

i understand that i have to pay NI and also a damned pension at the minute, which will shortly be cashed in until i'm earning enough to justify keeping it.

What's your tax code (it'll be on your payslip), and does your payslip actually show Income Tax deductions in addition to NI?

Given that your annual earnings shouldn't exceed your personal allowance, you shouldn't have any Income Tax deducted from your pay in the first place, provided your tax code correctly reflects your allowance.

If the code is "BR", this means that you're being taxed at the basic rate (20%) on all of your income, effectively assuming a nil personal allowance (not quite the same thing as 'emergency tax', though people often refer to it as such). I'd expect you to have a code of "647L" if you've filled given your new employer a P45 or P46, which gives the standard personal allowance of £6,475. If your tax code is incorrect then you need to get in touch with your tax office (contact details here), explain the situation and ask them to notify your employer of the correct code to use. If you've overpaid any Income Tax due to being on the wrong code you'd then get a refund the next time that you're paid.

Reply 198

ViolatedTreason

13

tax office Ref: 671/W9

Tax code: BR NONCUM

first job, so no P45

Reply 199

sandettielightvessel

1

You ought to have filled in a P46 when you started though. As Illusionary says, you would need to speak to your tax office who will issue you with a fresh code.

Tax

Related discussions

Latest

Trending

Trending

Articles for you