Hello Everyone,
I have been told different things about tax, Can anyone confirm.
My wife has been working since November 2005. Its
her first job, She is working for a agency. So Its
not a perminate job. But she has been working 5 days aweek.
I have been told for the first £4500 it would be tax free.
But she has been paying tax since the begining.
Does anyone know what i should do?
Thanks
Peter

She's paying emergency tax, she should receive a rebate soon.

Rgds
Keith

Hello Keith,
Thanks, Does it matter that she works for, a agency.
We she get a rebate automatically or would i
have to apply for it.
Thanks Peter

Peter, when she joined that agency she obviously could not have handed in a P45, given this was her first employment in the UK. Instead the agency should have given her a form P46 to complete. Did that happen? If so was it completed and handed back to the agency?

The point is that it is up to HMRC to notify the employer of a proper cumulative code number. They only know about the person when they receive the P46 from the employer.

We are getting near to the end of the tax year. If the code number matter has not been sorted out by 5th April then the P60 form when your wife receives it will show the pay and tax details. Contact HMRC when the P60 has been issued to your wife and they will arrange for the needed refund to be issued.

Tax from 6th April? Probably the correct amount.

Thanks John,
I don't think that she was given a P46, From her agency.
Will it be ok just to wait for the P60 OR should i ask
the agency for a P46.

Thanks
Peter

quote:

Will it be ok just to wait for the P60 OR should i ask
the agency for a P46.

I suspect the answers are Yes ... and No! That is, wait until the form P60 before trying to get the tax rebate. As regards the form P46, just click here to download a PDF, print it out, then complete and hand into the agency.

The fact that the employer is an agency makes no difference .... they are an employer required to operate PAYE.

Shame that as an Agency they seem to have not handled things properly.

The P60 is the form that quantifies for the "tax year" and so if there is any difference between this and earnings/tax, query them. You could be in for a rebate, or the agency might have to buck up their ideas.

Having met you before Peter (Heathrow) I would suggest donating a percentage of any rebate from John's advice to Marcus's pain run or another charity of good cause my bank and sort code are ...

Thanks everyone,
going to Thailand on April the 5th April.
So we will have to sort it out when i get back.

Maybe i got this wrong but the allowance is for the whole year and employers using emergency code assume that she has worked continuously, she should have given the agency a notice containing the correct tax code When the tax year is over just work out what tax has been paid for the the year as a whole and see what is owing either way, the p60 is useful. Employers just deduct the amount of tax depending on the tax code given to them by the revenue, no tax code then its the full whack ie emergency code.

quote:

Posted 06 March 2006 09:21
Maybe i got this wrong but the allowance is for the whole year and employers using emergency code assume that she has worked continuously, she should have given the agency a notice containing the correct tax code When the tax year is over

Correct. Standard tax code is 489L and is the same as the emergency tax code. Should you declare on p46 that this is your only or main job then you will be taxed on 489L with the assumption that you have earned that every week of the year. ie taxed on w1/m1 basis. If you cannot say that this is your main job then you will be taxed on the whole amount at 22pc as it is assumed that you are using your tax allowance in another job. Either way any tax rebate should be automatically paid to you at the end of the tax year.

quote:

Either way any tax rebate should be automatically paid to you at the end of the tax year.

Unlikely. Well certainly unlikely until after HMRC have made contact with the person concerned. After all the person might have had two or more employments in the tax year that need to be taken into account, so impossible to calculate the amount of the repayment without further information.

In any case it is far better if the taxpayer makes contact with HMRC to force the issue of the repayment due.

whatever the solution is, i must say that i have found face to face discussions in my local tax enquiry office very helpful, although finding the office was a bit of a challenge as its hidden upstairs in a rather anonymous office building !!!!!