Wrong tax code BR for whole year

[REDGOALS]

HI,

On April 20th 2009 i started a new job, my previous employer did not inform HMRC by way of a P45.

My new employer issued me with a 'BR' tax code on my payslips, i have been on this code since April 20th 2009.

I have written to the tax office and they have informed me i am not entitled to a tax rebate as my personal tax allowance for the year 2009/10 has been used up by my previous employment.

My question is, how can i have used up my tax allowance for the year 2009/10 in my previous job when i had left that job around on March 29 2009?

will appreciate any feedback.

thanks

[SueEllen]

That means you completed a P46 for your new employer.

In the UK tax years run April to April.

So if you finished your old job in March 2009 and started your new job in the middle/end of April 2009 you would have ended your old job in one tax year and started a new job in another tax year. Therefore your tax code would be easy to work out and no rebate would be due for either year.

[xoggoth]

Eh??? Don't follow that at all. Doesn't BR mean taxed on all income, ie no tax allowance? So what did happen to the 2009/2010 allowance when the last employer's deductions were for 2008/2009?

Are you sure they don't think you are still employed by previous employer as well because they weren't told you had left? BR is usually for a second employment or source of income.

[SackmanandCo]

Yuo should not be on basic rate code for 2009/10. You can claim tax overpaid by submitting a tax return.

[LisaContractorUmbrella]

If your previous employer did not issue a P45 HMR&C would assume that you had not left your previous employment and had also taken on another job. As your new job would be classed as secondary income it would be taxed at basic rate as your tax free allowance is always used for your primary employment. When you wrote to the tax office did you explain that you only had one employment in the last tax year?

[THEPUMA]

Also, be aware that if you are a higher rate taxpayer you may have a tax liability rather than a refund due as a result of the BR code. BR taxes everything at 20% so if you earn over £50K you probably will have paid too little PAYE rather than too much.

[xoggoth]

Good point. Illustrates that HMRC cockups can work in one's favour. Although if you kept quiet they would probably blame you.