Tax Rebates & Refunds

Tax refund – claiming tax back when on an emergency tax code

September 22, 2010
Posted in Tax Rebates — Written by Geoffrey

An emergency tax code is assigned when you begin a new job and your employer is not aware of which tax code to put you on. If you live and earn money in the UK and regularly pay your taxes, there is a chance that you may have overpaid your taxes over the last few years. You may then be due to a tax rebate. Every year, thousands of people in the UK end up paying too much tax and don’t claim it back.

Emergency tax codes

There are many emergency tax codes. If you take a look at your pay slip, your emergency tax code may have has a prefix or suffix X, WK1, BR or MTH1.

When you begin your employment for the first time, your employer will ask you to fill a P46 form. Until the time you provide your employer with this form, you will be put on an emergency tax code.

Being on one of the emergency tax codes means you may only be allowed a basic personal allowance. This does not take into account any other allowances in your monthly pay cheque.

Until you return the P46 to your employer, you will remain on an emergency tax code. This means you will be paying more tax than you need to. If you are paying emergency tax, you may be eligible for a tax rebate. Taking professional advice is a good option to ensure that you get the right amount of tax rebate.

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