At the end of 2014 I had a short stint being paid through an umbrella company. The P45 I've received from them states the total amount employment amount as £5110 and tax as £842 which is correct in a sense.
A part of that £5000 was
£1000 expenses (travel)
and just under £2000 was profit related pay.
So really only around £2000 was my basic wage.
Nothing on the P45 shows this though and they have added the expenses, profit related pay and basic wage into one section of gross basic income.
Now before this job I was an apprentice on a low wage and am now earning a much higher amount in a full time employment with overtime. Taking the stint with the umbrella company out of the equation I would be due a large tax rebate come April. I'm worried when I go for it HMRC will just look at the P45 add the £5k to my taxable income and the £850 paid in tax to my income tax and not take into account the expenses which aren't taxed and the profit related pay which is taxed at a lower amount.
How do I go about showing them that not all the £5000 is taxable at what could be 40%? Otherwise they may look at it as £5000 earnt and I should have paid £2000 in tax and take that out of what I would have been owed from my new job.
(Sorry if I haven't made myself very clear it's hard to describe through typing)
Thanks to anyone in advance for their help.
A part of that £5000 was
£1000 expenses (travel)
and just under £2000 was profit related pay.
So really only around £2000 was my basic wage.
Nothing on the P45 shows this though and they have added the expenses, profit related pay and basic wage into one section of gross basic income.
Now before this job I was an apprentice on a low wage and am now earning a much higher amount in a full time employment with overtime. Taking the stint with the umbrella company out of the equation I would be due a large tax rebate come April. I'm worried when I go for it HMRC will just look at the P45 add the £5k to my taxable income and the £850 paid in tax to my income tax and not take into account the expenses which aren't taxed and the profit related pay which is taxed at a lower amount.
How do I go about showing them that not all the £5000 is taxable at what could be 40%? Otherwise they may look at it as £5000 earnt and I should have paid £2000 in tax and take that out of what I would have been owed from my new job.
(Sorry if I haven't made myself very clear it's hard to describe through typing)
Thanks to anyone in advance for their help.
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