Tax questions for starting new job

Shenlok

Hi guys,

I've recently finished college, and will be starting full time employment in July. It's not my first job, I was working as an intern for the previous two summers, so I've done the initial application for Tax Credits cert etc.

I was just wondering what exactly I'll need to do to avoid getting emergency taxed in the new job. It will be my first employment for this year. I received a P45 from my previous employer after leaving my internship last September, but had to send parts 2 and 3 of that to a county council in order to apply for a college grant, so I don't have those any more. Do I need to apply for a new tax credit cert for the year 2013 or anything like that? I'd like to avoid getting emergency taxed as much as possible, since as you can imagine I'm not exactly rolling in money being fresh out of college

Also, I was wondering how being paid/taxed will work in general this year, since I'm starting employment halfway through the year. Will I be taxed as if I have been working all year, and get a refund on any overpaid tax/unused credits at the end of the year as a result? Or will that be taken into account initially when I start?

Any info or advice would be much appreciated
Thanks!

tatli_lokma

Re: avoiding emergency tax.
Your P45 won't be of use anyway, as it is from the last tax year. What you need to do is once you start work (as in within a week of your start date) get your new employer's Tax Registration number. Then phone revenue, give them this number, your PPS number and the date you started work. They will then send a new tax credit cert to you and one to your employer. As soon as your employer gets this you won't have to pay emergency tax, so the sooner you get it sorted the better. Revenue are usually fairly quick to get these sent out too, so you shouldn't need to even pay emergency tax if you get it sorted as soon as you start.

Re: tax credits. Usually these are issued as a cumulative credit, so because you have not availed of any so far in the year, you will have additional credits to use from Sept - Dec. You will get the benefit of them immediately and will not have to pay very much tax at all for the remainder of the year. Again, getting the tax credit cert organised quickly helps with this also.

Congrats on the new job and best of luck.

Shenlok

Little Ted wrote: »

Re: avoiding emergency tax.
...

Re: tax credits.
...

Congrats on the new job and best of luck.

Excellent, exactly what I was looking for (and hoping for!). Thanks very much for your help

Mrs OBumble

Little Ted wrote: »

Re: tax credits. Usually these are issued as a cumulative credit, so because you have not availed of any so far in the year, you will have additional credits to use from Sept - Dec. You will get the benefit of them immediately and will not have to pay very much tax at all for the remainder of the year.

This is true - provided you contact Revenue yourself, and make sure that they know you have not been working so far this year.

But if you don't contact them - for example, if HR say "we'll do it for you" - then Revenue don't know whether or not you have been working. So they might put you on "Week 1", meaning you won't get to use those tax-credits from earlier in the year immediately. If this happens, then you need to wait until your P60 is issued at the end of the year, and then ask Revenue for a P21.