Emergency tax

[meglet]

I started a new job a couple of weeks ago and haven't yet had my P45 so my pay tomorrow will be subject to emergency tax. Its been a while since this happened so am I right in saying that without my tax code I have been taxed on 100% of my earnings? Assuming this is true will I be taxed on 100% of my earnings at both the lower and higher rate or just the lower rate?

If I am taxed at 100% at the lower rate I will have to pay the shortfall next month but if its both I wil be due a rebate next month. So the short question is will I get a rebate?

Many thanks

[dundurn]

Ask your new payroll department for a P46 form, fill it in and hand it back to them. Since you've had a previous employment in the current tax year, you'll be taxed on a Month 1 basis. This means you'll be taxed on both lower and higher rate for your month's earnings and as a result (possibly) due a rebate next month. How much, if at all, wil depend on your cumulative earnings for the tax year.

One more thing to consider. If you are going to be paid in February and your new employer operates the P46, then the above applies and you'll get your rebate (if any) in March. If your first payroll is in March, however, then your new employer can't give you the refund since your next payroll (April) is in the new tax year. In this case you'll have to apply to the revenue for your rebate.

[meglet]

Thanks dundurn.

I have filled out a P46 already but it was only a couple of day before pay day is due. I get paid from the new job on Monday so my first pay day will be in February which means that I should get my rebate in March.

Excellent!

[dzug]

You shouldn't be taxed on 100% anyway - if your employer does it right he will use a code of 522L month 1 basis. Assuming you've worked the whole tax year up until now with enough earnings to use the allowance, then the tax is going to work out near enough the same with or without the month 1 qualifier.

It's if they put you on BR that you are stuffed.

[meglet]

I have the pay slip here. Next to the tax code is written M1 BR.

I guess that's 100% then?

[Poison-Ivy]

Yes you have been taxed at 22% of what you have earned.

New employers didn't receive P46 in time to action I expect. You will not automatically receive a refund when the P46 is actioned as the code they should operate is 522L M1. If you old employers do not issue your P45 before the end of the tax year, you will have to send off to the tax office for the refund, but this shouldn't be a problem.