Yes, another Tax Question..

[DaveF]

My kid (17 and last year at school) has had a p/t time for the last 6 months working in a restaurant only recently noticed that she is being taxed. Her code is 0T W1 which I gather is some sort of emergency code.

I assume this is wrong and she just needs to phone HMRC to sort it out or should her employer sort it for her?

TIA.

[JeMeSouviens]

Theoretically you should be able to do it online - https://www.gov.uk/claim-tax-refund

[Peevemor]

I find it pretty poor that whoever does the wages for the employer hasn't done anything to get this sorted out. I've seen this sort of thing happen fairly often with people (often youngsters) being totally unaware that they're entitled to a tax rebate.

[Santa Cruz]

My kid (17 and last year at school) has had a p/t time for the last 6 months working in a restaurant only recently noticed that she is being taxed. Her code is 0T W1 which I gather is some sort of emergency code.

I assume this is wrong and she just needs to phone HMRC to sort it out or should her employer sort it for her?

TIA.

Your Daughter will get it refunded in her wage, she has to inform HMRC. It happened to me, I phoned and got it back pretty quick 1-2 months (that was pre pandemic times so not sure if it will be slower just now).

[Peevemor]

Your Daughter will get it refunded in her wage, she has to inform HMRC. It happened to me, I phoned and got it back pretty quick 1-2 months (that was pre pandemic times so not sure if it will be slower just now).

Only if she gets a proper tax code sorted out.

[Santa Cruz]

Only if she gets a proper tax code sorted out.

They sorted mine during the telephone call.

[Peevemor]

They sorted mine during the telephone call.

It's normally not difficult at all, but for me a good employer should have been at her to get her tax code sorted out to avoid paying tax unnecessarily - the only difference it makes to them is who they give the mony to.

[SaulGoodman]

My kid (17 and last year at school) has had a p/t time for the last 6 months working in a restaurant only recently noticed that she is being taxed. Her code is 0T W1 which I gather is some sort of emergency code.

I assume this is wrong and she just needs to phone HMRC to sort it out or should her employer sort it for her?

TIA.

0T means she has no personal allowance before being taxed, which isn’t right.

W1 is an emergency code that means Week 1.

Seems to be an error somewhere that will need sorted, see below:


When you start work for the first time, you will not have a form P45, so your employer should ask you to complete a Starter Checklist (this used to be known as form P46).

The checklist asks you for certain information to help your employer allocate an ‘emergency’ tax code and work out the tax due on your first payday. Your employer will send the information that you give on the checklist to HMRC. HMRC will process the information you have provided on the Starter Checklist and where necessary, revise your emergency tax code to a proper tax code. You can find more about emergency tax on the page How do I check my coding notice?. Note - often, the ‘emergency’ tax code that you are allocated as part of the starter process does not need changing as it will be correct for your circumstances, and can be used on an ongoing basis by your employer.

The Starter Checklist requests information like:

your NINO;
whether you have been claiming jobseeker's allowance or employment and support allowance;
whether you have got a second job;
whether you are paying off a student loan.
It is important that you complete the Starter Checklist or provide the relevant information your employer has asked you for, as soon as possible before your first payday, so your employer knows what tax code to use. If you do not provide this information, you could end up paying way too much tax through having an 0T code operated.

Particularly the last few sentences.

On the plus side for your daughter it looks like she’ll be getting a decent sized rebate at some point in the future, once the above issue has been fixed.

[CropleyWasGod]

Yep, sounds like the P46 either hasn't been completed, or hasn't been processed properly, either by the employer or HMRC.

[DaveF]

Thanks everyone, really helpful 👍

[Skol]

My daughter had similar and it took ages to sort and eventually Harv sent a cheque

[DaveF]

She's just off the phone to HMRC and now has an appropriate tax code. Rebate coming but all a bit vague "between now and April"

Anyway, she is delighted, so once again thanks for the help.

[McD]

She's just off the phone to HMRC and now has an appropriate tax code. Rebate coming but all a bit vague "between now and April"

Anyway, she is delighted, so once again thanks for the help.


in regards to the vagueness, when I had a part time job when at uni, paid weekly, I often did overtime when on uni holidays, and got taxed more during those periods obviously.

once uni started back, I was getting tax rebates every week until the tail end of November, nothing massive (was only about £90 a week take home normally), but anywhere between 10 and 30 quid a week

[CropleyWasGod]

She's just off the phone to HMRC and now has an appropriate tax code. Rebate coming but all a bit vague "between now and April"

Anyway, she is delighted, so once again thanks for the help.

Depending on the speed of the code being used, and the size of the overpayment, she could get it in her next pay.

[Hibs Class]

My daughter had similar and it took ages to sort and eventually Harv sent a cheque

Has something happened to Hector?

[Skol]

Has something happened to Hector?

lol, I have no idea how Harv came about as I intended HMRC having considered Hector

[Killiehibbie]

It's normally not difficult at all, but for me a good employer should have been at her to get her tax code sorted out to avoid paying tax unnecessarily - the only difference it makes to them is who they give the mony to.

I've never known an employer to ever bring it to an employee's attention. One less thing for payroll to do between coffee breaks

[Peevemor]

I've never known an employer to ever bring it to an employee's attention. One less thing for payroll to do between coffee breaksFor about 10 years I did the wages for our firm (we only ever had 4-5 employees at any one time). We often had a student or two working for us, either during the holidays or for their year out, and they could have been most affected by paying tax unnecessarily had I not sorted them out properly. As an employer it doesn't cost you a penny more but the employee will be a lot happier. Total no brainer!

[gbhibby]

She's just off the phone to HMRC and now has an appropriate tax code. Rebate coming but all a bit vague "between now and April"

Anyway, she is delighted, so once again thanks for the help.
Keep chasing them up. Phoned HMRC about a rebate and was told that it had not been dealt with and was given no indication of when it would be done. Received money into my bank account 7 days later.

[Killiehibbie]

For about 10 years I did the wages for our firm (we only ever had 4-5 employees at any one time). We often had a student or two working for us, either during the holidays or for their year out, and they could have been most affected by paying tax unnecessarily had I not sorted them out properly. As an employer it doesn't cost you a penny more but the employee will be a lot happier. Total no brainer!
You would like to think so but in my experience they all just leave it up to the employee. One place I worked I got told to stop sending people in with wrong tax codes and wages that were short.

[Rocky]

I'm not sure most employers these days would have the faintest idea what tax code is being applied to their staff. They'll fire a spreadsheet off to their payroll provider and tax codes will be applied automatically via the electronic link to HMRC won't they?