P45 Question

[monkeys]

I have recently left my previous employer and I was last paid on 31 March they are saying I wont receive a P45 as I have not earned with them in this tax year, is this correct?

I called inland rev and 2 ppl said i should get one and one said i wouldn't receive one, I am so confused as i thought you would get one even if it said 0 earnings? i dont want to be on emergency tax when i begin my new employment!

Can anyone help?

M

[jedimistress]

Tell your new omployer you have not earnt anything this year. They could use the standard tax code instead of basic rate. If your employer decideds to use basic rate, you will not lose out as you will get any overpayment of basic rate tax back once they have issued your tax code to your new employer. Should only take a couple of weeks.

[aristotle]

If you haven't got a P45 you should complete a P46 and give it to your new emploey. You can get it from HMRC website www.hmrc.gov.uk , type P46 in the Search field. This will enable your new employer to put you on the correct tax code for the cxurrent month and get the details from HMRC of your correct tax position in time for the following month. Your new employer should have told yuo this and given you the form to complete.

If you worked with them up to 31st March then you did earn money with them in the tax year ending 05/04/07 so they should give you a P45, it's a legal requirement.

[ChuffingHell]

The employer is right in that the new tax year means your P45 won't be needed for tax purposes as codes went up on 6th april - you just say you haven't worked for anyone else and fill in a P46 (ticking section A) which puts you on 522L. This means you avoid emergency tax.

However, you have a right to have a statement summarising your earnings. if they wrote you off the system on the 31st March then a P45 will be generated and will list your earnings and tax payments

If they didn't do it until after the 6th April, a P60 will have been generated so ask them for that instead.

If you earn below the tax threshold and are happy that you haven't overpaid tax (your payslip should list total earnings and total tax paid to date) then its not a big deal. However, if you think you might have done, then you should get ypu P45 because you will need it to claim money back from the wonderful people at the revenue.

[dzug]

It depends.

If you left your old employer's payroll before 6 April you won't get a P45.
If you were still on the payroll then you should get one for nil earnings.

The first looks more likely.

Don't get too hung up about emergency tax - it's the same rate as normal tax, but just not done on a rolling basis. It shouldn't take long to sort out.

[aristotle]

Without a P45 or P46 you will be on Basic Rate tax (not emergency rate) which means you will have 22% of your earnings deducted with no free pay and no 10%. This means you will have overpaid tax unless some of your pay should have been taxed at 40% in which case you will have underpaid. Thsi will be sorted out as soon as your employer has the P46.