MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
My daughter's just started her first job, two evening shifts at a supermarket and has just been paid for the first time. She's made up, having 'never been so rich' especially as she's been paid for four shifts in Sept and only done two so far (tomorrow and Sat to do) !
But when we looked at 'how rich' - she's been taxed on a BR emergency code code so has had 20% deducted.
How does she get that back - I know from experience when I was out of work that your P45 into your new employer takes a while to work through but your future tax is then reduced so it comes into line. 2 x 4 hrs at minimum wage per week won't get her close to taxable territory though, so there's no future deductions to reduce.
Does the tax deducted get added back to a future payslip by payroll, or will she have to claim it?
(bless her, she said it's only £30 and she's not worried about it. I told her she'll be paying enough tax soon enough there's no way she needs to be paying extra!!! The innocence of youth)
It *should* be sorted out by Sainsbury's payroll over the next payment run(s).
she said it’s only £30 and she’s not worried about it. I told her she’ll be paying enough tax soon enough there’s no way she needs to be paying extra!!! The innocence of youth)
^^^ That's sweet.
Yeah as soon as her tax code is sorted it will automatically be paid back. For a first job she needs to fill out a ‘New starter’ form I think it’s called from HMRC, the old P46.
I’ll look it up...
I have a feeling that it doesn't repay tax when you get the code sorted out, it simply reduces future payments, if she's never going to hit the threshold she will not get it back through payroll (things may have changed since I last encountered this - we were not far off paper and pen then). She should automagically then be issued with a refund from HMRC at the end of the tax year. As always HMRC will be slower to issue refunds than demand overdue money 😉 so she may need to chase them in about June if she has heard nothing.
Does the tax deducted get added back to a future payslip by payroll, or will she have to claim it?
Basically yes, this is what happens however it would be better if she got in touch with HMRC to make sure they get the right tax code to Sainsburys. This happened to me (25 years ago!!!) in my first proper job and in my December pay packet that year my net pay was greater than my gross!
Edit: I think that only works if it get sorted in the same tax year.
I have a feeling that it doesn’t repay tax when you get the code sorted out, it simply reduces future payments,
+1
I was on BR for ages when I started my present job about 12 years ago, about 6 months IIRC. Ended up getting the previous year refunded by the tax office over the phone there and then and the present year added to my pay.
In my experience, don't assume it will get sorted out at next pay. Unless it is flagged up it may continue on that tax code until the end of the tax year or you inform hmrc.
It happened to me. Nearly 8months of paying emergency tax, partly my fault as I didn't actually check my payslips. Checked my bank, thought I was getting paid correctly and it wasn't until I got a nice tax rebate at end of tax year that I realised the mistake.
Regardless of the tax thing, well done to her for getting a job.
I was on BR for ages
Much to my shame, I was on it for 4 years! I never read payslips much past the 'how much' part. All because my job paid 2 weeks and in advance and 2 weeks in arrears and my old job paid in arrears.
HMRC were their usual efficient self. I had to write to them, explain the error, wait 6 weeks for them to read it, then 2 more for them to send me a cheque and then repeat the process 3 more times as they would only consider 1 year at a time. This was 20 years ago though.
Best way would be to phone hmrc and explain the situation. She’ll need her ni number to hand when she does.
There’s no guarantee they’ll automatically issue the correct tax code unless she talks to them and they may also put her on a week1/ month 1 code which means she won’t get the tax back she’s already paid. They’re terrible.
My daughter had this exact issue last month. She called HRMC, a two minute conversation and she got all of the tax back that she shouldn't have paid, she doesn't earn enough to pay tax, in her pay this morning. It was that easy.
Once her tax code is right she will get it back - worth a call to HMRC. It's quick to sort.
thanks, will see if we can call them (HMRC)
Will HMRC allow me to discuss with them (with her present, she's only 16) or do i have to pass her notes like a barrister's assistant in court!
Will depend how they've set her up on the payroll system.
The BR code will just be because they had nothing else to go on and is standard practice. What should happen is that the system works of a YTD position and therefore when the tax code is changed it works out the new YTD position and thus the amount she needs to pay/be paid back in any given week.
Standard DPA practice. They'll ask your daughter some security questions, one of which will definitely be her NINO and then she can advise that she gives permission for you to speak on her behalf. It only stands for that call though. You'd have to repeat the process should your daughter need to call back.
We had exactly this last year.
Middle one had employer just do nothing and he got a nice cheque from HMRC at the end of the year.
Eldest went over the tax threshold, so employer smoothed out the tax for the year. He still ended up with a cheque from HMRC as he had still overpaid.
Just leave it until end of tax year IMO, they won't refund now in case she suddenly earns a wedge and needs to pay tax.
thanks, will see if we can call them (HMRC)
Son recently had reason to call them about something completely different. He was astounded to discover they don't answer the phones after 1630 (the youth of today and 24h culture!) but I was even more astounded to discover that there was an instant messenger chat thing still staffed to 8pm which did answer his question. That obviously solves the next point...
or do i have to pass her notes like a barrister’s assistant in court!
Instructing solicitors up and down the country just took offence as being described as the assistant...
Just leave it until end of tax year IMO, they won’t refund now in case she suddenly earns a wedge and needs to pay tax.
My daughter had this exact issue last month. She called HRMC, a two minute conversation and she got all of the tax back that she shouldn’t have paid, she doesn’t earn enough to pay tax, in her pay this morning. It was that easy.