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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4081
Experience:  FCCA FCMA CGMA ACIS
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I did not receive a p45 from my last employer and my current

Customer Question

I did not receive a p45 from my last employer and my current tax code is OT M1 .Am I paying too much and will I be entitled to a rebate in the new tax year. My pay to date is £7180.87 and I have paid £1435.80 income tax. Thank you
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
, I'm Keith and happy to help you with your question.
Here is the meaning of a 0T tax code:
'Your Personal Allowance has been used up, or you’ve started a new job and don’t have a form P45, or you didn’t give your new employer the details they need to give you a tax code.'
If you have commenced work with a new employer they will send a P46 to their tax office who will pick up your tax records and in due course issue a new and more accurate tax code. On your current coding all your pay will be taxed at the basic rate of 20%.
In fact on an income of 7180.87 you would appear to have overpaid tax somewhat. However, if you are on Job Seeker's Allowance that is paid gross, but subject to Income Tax. However when claiming this allowance the Job Centre will withdraw your P45 if you have one and when you come off benefit they will issue you with a new form which will take benefits into account and can be used by a subsequent employer to continue the correct PAYE procedure.
It will all come out in the wash at the end of the tax year on 5 April when your tax office prepare your end of the year statement. You may well find it adviseable to self assess after that date and HMRC may well send you a form to complete and on return thereof will issue the aforementioned statement. If you have not seen the form before it looks quite daunting as it is designed to be all things to all people, but if you follow the golden rule of only entering data where you have something to declare and leaving the boxes blank which do not concern you life will become much easier.
I do hope I have shed some light on your current situation .
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you support.