Emergency tax / refund question

Karlsson

Karlsson

Central Defender
Started a new job last May and it turns out I’ve been on emergency tax ever since!

Only realised today when I got my payslip as I got a sizeable bonus last month which took me over the 40/50% threshold for January but not for the year, yet I didn’t get a tax refund this month for last month’s overpayment. I’ve worked it out and I’m probably due about £1,400 back.

I’ve got the HMRC app and the info on my PAYE records is all correct, so I’m unsure why I’ve actually been placed on ET in the first place! 🙄

Does anyone know the best / quickest way I can get it refunded and get my tax code corrected?

TIA

Edit: Sorry wrong forum mods please move.
 
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Karlsson said:
Started a new job last May and it turns out I’ve been on emergency tax ever since!

Only realised today when I got my payslip as I got a sizeable bonus last month which took me over the 40/50% threshold for January but not for the year, yet I didn’t get a tax refund this month for last month’s overpayment. I’ve worked it out and I’m probably due about £1,400 back.

I’ve got the HMRC app and the info on my PAYE records is all correct, so I’m unsure why I’ve actually been placed on ET in the first place! 🙄

Does anyone know the best / quickest way I can get it refunded and get my tax code corrected?

TIA

Edit: Sorry wrong forum mods please move.
Click to expand...
Did you give your current employer a P45 from a previous job when you started work?
 
Karlsson said:
Started a new job last May and it turns out I’ve been on emergency tax ever since!

Only realised today when I got my payslip as I got a sizeable bonus last month which took me over the 40/50% threshold for January but not for the year, yet I didn’t get a tax refund this month for last month’s overpayment. I’ve worked it out and I’m probably due about £1,400 back.

I’ve got the HMRC app and the info on my PAYE records is all correct, so I’m unsure why I’ve actually been placed on ET in the first place! 🙄

Does anyone know the best / quickest way I can get it refunded and get my tax code corrected?

TIA

Edit: Sorry wrong forum mods please move.
Click to expand...
Pure Football Finance

Just ring them they'll sort it out
 
BarnesPark said:
Did you give your current employer a P45 from a previous job when you started work?
Click to expand...
No but I did fill in a P46 which is the equivalent anyway, and as I said I’ve checked my PAYE records on the HMRC app and everything is correct.

I didn’t get my P45 from my previous employer until about 2 months after I left but I’ve got it now and I can certainly pass it on today if it would help.
 
Karlsson said:
Started a new job last May and it turns out I’ve been on emergency tax ever since!

Only realised today when I got my payslip as I got a sizeable bonus last month which took me over the 40/50% threshold for January but not for the year, yet I didn’t get a tax refund this month for last month’s overpayment. I’ve worked it out and I’m probably due about £1,400 back.

I’ve got the HMRC app and the info on my PAYE records is all correct, so I’m unsure why I’ve actually been placed on ET in the first place! 🙄

Does anyone know the best / quickest way I can get it refunded and get my tax code corrected?

TIA

Edit: Sorry wrong forum mods please move.
Click to expand...

I don’t understand this point? Your earnings are over the year not the month so you wouldn’t flip between higher or lower tax brackets month to month.
 
Karlsson said:
Started a new job last May and it turns out I’ve been on emergency tax ever since!

Only realised today when I got my payslip as I got a sizeable bonus last month which took me over the 40/50% threshold for January but not for the year, yet I didn’t get a tax refund this month for last month’s overpayment. I’ve worked it out and I’m probably due about £1,400 back.

I’ve got the HMRC app and the info on my PAYE records is all correct, so I’m unsure why I’ve actually been placed on ET in the first place! 🙄

Does anyone know the best / quickest way I can get it refunded and get my tax code corrected?

TIA

Edit: Sorry wrong forum mods please move.
Click to expand...
If you ring, do it early, just after 8am, otherwise you wait for ages. They incorrectly overtaxed me, then the calculation they did was wrong, but they won't put you through to the person who did it. They just said they would assess it after 5th April. It's obvious wrong but they just want to hold onto it.
 
JL1985 said:
Inform the payroll dept at your employer. This happened to me but it went on for 10 months. Got all the overpayment back in my next pay packet.
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Yea I’m going to speak to them today, I just didn’t know if it was worth ringing HMRC first hence asking for advice on here.
safccfas said:
I don’t understand this point? Your earnings are over the year not the month so you wouldn’t flip between higher or lower tax brackets month to month.
Click to expand...
Apparently you do when you’re on emergency tax.

I’m down as something called week 1 / month 1 where its calculated monthly not yearly, so if you overpay one month you don’t get it back the next.
 
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Karlsson said:
Yea I’m going to speak to them today, I just didn’t know if it was worth ringing HMRC first hence asking for advice on here.
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You should do that as well. I find it better to have many people on the case rather than one, it will get fixed more quickly.
 
Karlsson said:
Yea I’m going to speak to them today, I just didn’t know if it was worth ringing HMRC first hence asking for advice on here.

Apparently you do when you’re on emergency tax.

I’m down as something called week 1 / month 1 where its calculated monthly not yearly, so if you overpay one month you don’t get it back the next.
Click to expand...

W1m1 isn't necessarily emergency tax.

It's quite common to be put people who have a second job on BRW1M1 which means you don't get your annual allowance before tax starts and,as you say, tax is charged monthly not cumulatively. This does suggest you may have filled your P46 out wrong or someone has inputted it wrong as HMRC would normally correct it within a month unless they're told its a second job. (Unless it is a second job in which case your tax code is theoretically correct and they'll sort it after April)
 
Karlsson said:
No but I did fill in a P46 which is the equivalent anyway, and as I said I’ve checked my PAYE records on the HMRC app and everything is correct.

I didn’t get my P45 from my previous employer until about 2 months after I left but I’ve got it now and I can certainly pass it on today if it would help.
Click to expand...
P46s haven’t been used for a couple of years.

Your employer should be using the “New Starter Checklist” form online since P46s are not used

www.gov.uk

Tell HMRC about a new employee

Use their P45 (or starter checklist, which replaced the P46) to get information from your new employee, set them up on your payroll software, tell HMRC.
www.gov.uk www.gov.uk

If however, the tax code being displayed on the HMRC app is not the tax code being applied on your payslip, probably best to call.
 
parsonjohn1985 said:
W1m1 isn't necessarily emergency tax.

It's quite common to be put people who have a second job on BRW1M1 which means you don't get your annual allowance before tax starts and,as you say, tax is charged monthly not cumulatively. This does suggest you may have filled your P46 out wrong or someone has inputted it wrong as HMRC would normally correct it within a month unless they're told its a second job. (Unless it is a second job in which case your tax code is theoretically correct and they'll sort it after April)
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No I don’t have a second job so there’s definitely a rabbit away somewhere.

That makes sense what you’ve said though as I did notice on my PAYE records that my previous employer had me down as leaving on 30th May, which was also my first day in my current job.

Could that one day crossover have caused the issue, do you think?
 
Karlsson said:
Good point! 😉

Ooooh look at me, etc! 🤣

Trust me I’d rather be on here moaning about KLD / Speakman / state of the club than have this problem!
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It will get sorted and you can view it as an unofficial savings account. You’ll have a nice pot of gold when it does get returned.
 
Karlsson said:
No but I did fill in a P46 which is the equivalent anyway, and as I said I’ve checked my PAYE records on the HMRC app and everything is correct.

I didn’t get my P45 from my previous employer until about 2 months after I left but I’ve got it now and I can certainly pass it on today if it would help.
Click to expand...
You’re on that code simply because your employer didn’t have your P45 which shows previous pay and tax , therefore, tax code could not be cumulative.

Had your new employer operated it on a cumulative basis you’d have been duplicated allowances used in April and been underpaid.

Give P45 to current payroll department, that should sort it.
 
JL1985 said:
It will get sorted and you can view it as an unofficial savings account. You’ll have a nice pot of gold when it does get returned.
Click to expand...
That’s the whole point though it’s better in my bank earning interest than theirs, which is why I want it sorting ASAP.
eddtheduck said:
You’re on that code simply because your employer didn’t have your P45 which shows previous pay and tax , therefore, tax code could not be cumulative.

Had your new employer operated it on a cumulative basis you’d have been duplicated allowances used in April and been underpaid.

Give P45 to current payroll department, that should sort it.
Click to expand...
Perfect I’ve just emailed it to them so hopefully that will sort it.

Cheers 👍
 
Contact HMRC who may be able to issue your employer with a new tax code before the year end. If not, they should be able to issue a P9 notification to take effect from the new tax year starting 6th April.

If you've overpaid tax for the current year, HMRC will issue you with a P800 showing the balance due and a refund will stem from that.

Unfortunately, even if your tax code is correct on your records, your employer cannot (or rather shouldn't) change your tax code, they need notifying directly via HMRC.

As for the W1M1 basis, you are correct that one month has been taxed at 40% and not corrected in the next pay period as your coding is non cumulative, meaning each pay period looks at Month 1 or Week 1, irrespective of the year to date values. Someone mentioned that emergency tax is not always non cumulative due to another job which I don't understand, as normally a tax code would be split with a T code being issued, eg 600T instead of 1257L.
 

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