Tax Rebates & Refunds

More details on emergency tax codes

July 3, 2011
Posted in Income Tax — Written by Geoffrey

If you have recently changed your job or just started a new one, chances are that you may have been put on an emergency tax code. In such a case, you might end up paying more than usual taxes. When you have an emergency tax code, you will not receive any kind of yearly tax free allowance. Moreover, you will need to pay your tax at a basic rate of 20%.

How to determine your tax code

When you quit your employment, you will be given a P45. On the other hand, at the end of every financial year, your employer will give you a P60 tax document. Both the P60 and P45 are important documents that have every detail about your income. They also include mention of your tax code. In cases where the tax code has a prefix or suffix of MTH1, WK1, X or BR, it means that you are on an emergency tax code.

How to claim emergency tax back

After you get your P45 / P60, enter the earnings and tax deducted values into a tax rebate calculator. This will let you know about the amount of tax that can be claimed back. Once you know the amount of tax rebate you are eligible to get, you can contact your nearest tax office, fill in the form and provide any other documents too. If you have any doubts about the tax refund procedure, you can even hire a professional to solve your problems.

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