Emergency tax.

[ranting]

Have gone back to work, supplied the company with my P45 but they have put my tax code as Emergency, they are saying that my P45 is out of date!

How can a P45 be out of date? I've now filled in a P46 but what happens now? Am bit confused.

P45 only works if it is for the current tax year. HMRC will issue a code based on the P46 and your tax will be adjusted on a cumulative basis when your employer uses your new code.

Ahh, now why couldn't payroll just tell me that!

So am I right in thinking they take that into account when they adjust my tax code?

roquefort has got the gist, P45s are only really valid for about 6 weeks after you have left your last employer. However based on todays date, ie we are not that far into a new tax year, the chances are you wont be owed any tax having been put on Week 1 (Emergency Tax) rate as it is the same rate as if you were starting at the beginning of April IYSWIM.

If it is Base Rate you may overpay by a relatively small amount.

I have put it as simply as I can, but it is still confusing, so don't be too down on payroll .

Ah cheers. Thanks for that.