I've just started a new job and my tax code is BR. I was taxed £30 on £130 for the week. Is this correct?

Question

What does the tax code mean? In all my other jobs, my tax code was 503L or 522L. I was claiming jobseekers allowance before I started my new job. Does this have anything to do with it?

Answer 1

BR is Basic rate emergency tax, the jobcentre should issue a P45 which you give to your new employer, they Will send it to HMRC who will change your code to 543L and you will then be taxed correctly. you will get any excess reimbursed to you

Basic Rate is used when HMRC is unsure of the amount of income you have had this year, the P45 from JCP will detail how much you have had in JSA, confirming your earnings so that you code can then be changed. HMRC doesn't know how you have been supporting yourself and what your income has been so Taxes at Basic rate until it learns (from your P45) what you have earned so far this financial year

Tax code L is BR basic rate and is because you have not supplied a P45 yet, have you been given one from JCP - have you passed it to your employer?

Read this site

http://www.direct.gov.uk/en/MoneyTaxAndB...

Answer 2

BR means that basic rate tax is deducted from all your pay.  Since you have to pay National Insurance contributions as well, that's quite expensive.  Jobseekers allowance is subject to tax, but no tax is deducted.  That therefore comes off your personal allowance.  Once the tax office is happy that they've collected enough tax to cover the JSA, they'll give you a new code.

Answer 3

Yet again, I have to say, Basic Rate is NOT emergency tax. The emergency tax code is currently 543L on a week or month 1 basis. I guess employer is using BR because you have not given him form P45U from the Jobcentre, and he hasn't prepared form P46 for you. Why haven't you given him form P45U? That would sort it all. Form P60 won't help, as that relates to another tax year. If you can't give him form P45U, ask him to do a form P46, which you can sign to say it is your only or main job. Then you can be put on emergency tax, which means you pay the correct amount of tax, but each payday is taken in isolation, it is not done on the normal cumulative basis. In your case, you will have a backlog of tax allowance, but that can't be sorted until your Jobseekers form P45U is to hand, with previous pay figures.

Answer 4

This is basic rate tax (20%),it sounds like you are paying to much tax and not using your tax allowance

You should hand in your form P45, if you have not got one ask your employer for form P46

Answer 5

As the bottom rate is 20% you've not done too badly and it will even itself out after a few weeks anyway.

Answer 6

Youre being taxed at basic rate at the mo, when your proper tax code gets through the system you will be taxed at that rate, and what has been overpaid by paying BR you will get back!!

Answer 7

think you are on the wrong tax code!!

Should only be taxed about £10.00 including N.I on that wage!!

Answer 8

You'll need to provide your employer with proof of your income, probably a P60.

You will definately get the money back, and although it will eventually sort itself out, it might take a year. You might need to call the tax office to request some paper work.

I'd recommend you call the Taxback Helpline as they're the only ones who can help for sure: 0845 077 6543

BR means emergency tax. They'll put you on emergency tax if they don't know how much you earned this year, or if you have a second job.

Answer 9

its emarcency tax youl get it back

Answer 10

BR means basic rate which is basically emergency tax. This is the standard rate everyone is taxed at before adjusting for underpayments, starting new jobs and benefits in kind. The standard code currently is 543L which is what you are on.

The tax however is too high - you should pay £5.10 a week in tax and £2.75 a week in National insurance. And even on that you should be able to claim some tax back at the end of the year as you had a period of unemployment.

JSA can mess with your tax. It might be worth calling HMRC or the jobcentre to check with them. However i wouldn't expect that to explain the entirety of the over-tax.

You may get a rebate when your tax code is sorted, make sure you fill in a form P46 and give to your employer as soon as possible.