What Is Emergency Tax? – TaxBack

from the blog.

What Is Emergency Tax?

Tax -deductions -2011-calculator -i8If your employer does not know
what your tax code should be, you will be taxed on an ’emergency’
code. This means that you receive no tax-free personal allowance so
everything you earn will be taxed at 20%. Although you can claim
back overpaid tax from HMRC, it is better to get your code changed
as soon as possible, so you are given the correct allowance and pay
the right amount. To do this, you should give your employer your
P45. If you are put on the emergency code, you will be given a tax
free allowance of £11,000, above which you will then start paying
tax.

For most employees this will be correct, as it is the basic
personal allowance and assumes that you are entitled to 1/12 of the
allowance each month. However, it does not take into account any
backlog of allowance that may be due to you – for example,
following a period of unemployment. For this reason your employer
may have to adjust the coding in some cases. As with this code, you
need to contact your employer straight away and give them your P45
in order to make sure you get the correct tax code!

For more tax info, call our contact number on +44 (0)20 3751 1266
or use our handy
tax calculator to calculate what you
could be owed.



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