Taxe Code Issues

[fentuz]

Hi All,

 

Recently I change job. At previous job, I was on taxe code 603L and for some reason the new employer put me on BR.

 

I was expecting to be on same taxe code. could somebody tell me why they did not put me on 603L as expected.

 

And they are now asking me to pay the difference of 1 year of taxe between BR ad 603L so they ask me me to pay 5% extra on earning I got when I was employed in Sheffield.

 

Is it normal?

 

How can they do that?

 

Thanks

Bill

[dobbo]

It's not uncommon to have a strange tax code when you first change jobs. It gets sorted out fairly quickly.

 

If there's extra for you to pay for the period you were on a different code, you can ask for it to be spread over a period of time that suits.

[fentuz]

It's not uncommon to have a strange tax code when you first change jobs. It gets sorted out fairly quickly.

 

If there's extra for you to pay for the period you were on a different code, you can ask for it to be spread over a period of time that suits.

 

What I don't undertand (and refuse) is to pay some extra taxe as I was on a different taxe code.

 

Why should I pay 5% extra for last year when I was employed by somebody else? I've in this place for 2 months and they ask me for taxe when I wasn't part of the company????

 

Job is boring, colleague aren't nice, I really pi$$ed off now.

 

I found that on a accountant website

It is important for employers to use the correct UK tax code which is stated on the P45 an employee presents to the new employer when starting employment to deduct the correct rate of tax. If the new employee does not have a P45 for the current financial year then the employer should request the employee complete a P46. The P46 is sent to HMRC who then review the tax coding and issue an appropriate tax code for the employer to use.

 

As My P45 state 603L, the new employer should applly 603L. Am I right?

[Mark H]

BR

This code is an abbreviation of "Basic Rate". It is applied by HMRC to employees who are liable to pay income tax at the basic rate, i.e. 20%. You may be given this tax code if you have two jobs - in one of the jobs you have a suffix code so that you receive your "tax-free pay"; in the other you must pay tax at 20% on all of the earnings. If you have two pensions, the state pension and an occupational pension, this code may be used to deduct tax from your occupational pension.

Your employer is also allowed to allocate this code for new employees in certain circumstances if HMRC has not yet provided an official tax code.

 

If you have this code, your employer is required to deduct tax at 20% from all of your earnings. You do not have any "tax-free pay".

 

Example: Your weekly earnings are £300. Your employer deducts £60 tax, i.e. 20% of £300.

[fentuz]

What does mean : Your employer is also allowed to allocate this code for new employees in certain circumstances if HMRC has not yet provided an official tax code.

 

I supplied the P45 with the statement 603L. What else do they need?

 

I don't understand why they cannot apply the code supplied on P45 and mainly why would they apply a different taxe code for the period I wasn't working for them.

 

I feel robbed twice...

[simondann111s]

603L, you lucky bugger. Mines 0T, work that one out...

[Reg]

I feel robbed twice...

 

Welcome to Gordon's utopia.

[the_privateer]

I'm not an accountant by an means but this is how I understand it, I changed from permanent in April 2008, to contracting, then back to permanent in Aug 2008. My current employer still has me on what is month 1 week 1, which is basic tax rate. This is because until the tax office that your former employer sends on your tax details then you go onto emergency tax until they get your code.

 

The original tax code of 603L, means that you can earn £6030 before you are taxed on your income, I an not sure how basic rate works, but I think that all of your income is taxed until your new employers gets your tax code. Basically there is nothing that you can do. It will be resolved by the HMRC when they evaluate it at the end of the year.

 

With my circumstance, I may owe them or I may get a rebate, don't know. I don't think that the difference is worth quibbling about, besides it is all in the hands of inland revenue anyway.

[Carlos]

^^^^^Pretty good for saying your not an accountant.A BR code is a Basic Rate code, and is slightly different to a M1W1 code.603L is your Personal Allowance, and is split in 12 months, so around £503 tax free a month, after this the next big amount is at 20%.The reason for the BR code, is that the revenue, or your employer believe this is your 2nd job, so your 603L code is being used else where. Basically they haven't coupled the Part a section (your bit) and the Part B section (employers bit) together.Check with your old employer to see if they haven't sent their P45 part in.You really need to get this sorted before your March pay day, else you will get severley over taxed.If this isn't sorted by then, and you don't mind me know your gross pay and tax, then by all means PM me, and i can talk you through how to file a overpayment of tax. Basically you can claim this overpayment back, if it isn't claimed through your tax code.As for the T code above.....Don't moan, the rest of us have to pay for their cars, health insurance and mobile phone, out of their pocket, not just the 20% element of it ...Oh, and forgot to mention, im a chartered certified accountant, so deal with these revenue stuff ups everyday of my life. Give Reg & Elaine a shout, if you want to check im not some con man, trying to diddle ya.

 

Also be warned. The revenue DO NOT always sort this, it is left to the individual to reclaim their tax.

[fentuz]

All Sorted... It was a mess... A trainee didn't put right info everywhere so my employer saw something (£200 error ont their check list), I saw something different on my pay slip (over £1K error)...

 

After 1 hour dealing with the account company... sorted... Right taxe code, they will paid the difference and see out they can get refounded themselve...