P46 - Last salary on hold until tax code is applied?

175010012017

Hey folks,
I quit my job in November 2016 to start a new job in January 2017. The old job didn't give me a P45, so at the end of January we filled out a P46 at the new job.

They let me go at the new job shortly afterwards because they thought I wasn't a good fit.

I worked through January and was let go at the beginning of February with the agreement that I would get paid in full for February.

Today was supposed to be my payday. I didn't receive my salary so I rang them up and they said that they are still waiting for Revenue to get back to them with the tax code, so I get a full salary + Holiday pay without deductions.

This sounds weird to me, but at the same time I have no idea how this works. I was under the impression that I would get taxed at the emergency rate and claim back later. But my former employer said that this method is only used if I would have stayed with them, so I get the tax back through a salary payment from them after the tax code was applied.

So basically they're claiming that they are holding off the last salary payment until they have the correct tax code, because I wouldn't be able to get the over payment back through them.

Is this accurate or am I being taken for a ride?

Thanks in advance for all helpful replies.

gerrybbadd

175010012017 wrote: »

Hey folks,
I quit my job in November 2016 to start a new job in January 2017. The old job didn't give me a P45, so at the end of January we filled out a P46 at the new job.

They let me go at the new job shortly afterwards because they thought I wasn't a good fit.

I worked through January and was let go at the beginning of February with the agreement that I would get paid in full for February.

Today was supposed to be my payday. I didn't receive my salary so I rang them up and they said that they are still waiting for Revenue to get back to them with the tax code, so I get a full salary + Holiday pay without deductions.

This sounds weird to me, but at the same time I have no idea how this works. I was under the impression that I would get taxed at the emergency rate and claim back later. But my former employer said that this method is only used if I would have stayed with them, so I get the tax back through a salary payment from them after the tax code was applied.

So basically they're claiming that they are holding off the last salary payment until they have the correct tax code, because I wouldn't be able to get the over payment back through them.

Is this accurate or am I being taken for a ride?

Thanks in advance for all helpful replies.

Taken for a ride.

If they don't have a "Tax code" they are meant to apply emergency tax. With you being out of work now, you can claim the tax back from Revenue direct.

175010012017

Thanks for the reply, gerrybbadd.

This is not optional, right? They can't just not apply emergency tax and hold the payment. It was phrased like they're doing me a big favor, so I don't have to wait for the tax return.
I don't necessarily think they're lying though. I think they don't know better and assume this is the way to do it.

PCX

Are you sure they said tax code and not tax credit certificate?

175010012017

mhh... She might have said "Tax Credit". I'm not 100% sure.

What she described was that because I didn't have a P45 from my previous employer, they held off the payment so they don't apply "Emergency Tax" on the last salary payment, as I couldn't get it back through their payroll later as I was let go.

Basically, the "Tax Code" or "Tax Credit" should be the result of the P46. Does that ring a bell? So they claim to be waiting for the result of whatever comes out of the P46, so they can pay me in full.

I'm really sorry that I'm so stupid with this. I felt overwhelmed by the explanation they gave me. Loads of terms and assuming I know what is talked about.

I don't want to start anything and then be in the wrong. I'm fairly certain they don't have money issue. I think they're doing what they think how it's done.

gerrybbadd

Whether tax code or tax credit certificate, the option to withhold payment does not exist.

If they don't have a Tax Credit Cert, emergency tax applies

toadfly

As above, not correct to withhold salary because tax credit isnt through. Thats what emergency tax is for. If the P46 was sent at the of January I dont know how it is taking this long? Usually where I work it would be through in a matter of days.

175010012017

Thanks for the replies.
I called them and said they need to apply emergency tax and I sort it out through tax return.
No resistance or anything, said I'll have the money and my final payslip within a few days.

175010012017

Hey folks,
I got my salary taxed at emergency rate. Can I claim the tax back straight away from Revenue or do I have to wait until next year? I can't do a P21 yet (it doesn't give me the option online for this year), so I'm a bit lost how to claim the taxes back.

CIARAN_BOYLE

175010012017 wrote: »

Hey folks,
I got my salary taxed at emergency rate. Can I claim the tax back straight away from Revenue or do I have to wait until next year? I can't do a P21 yet (it doesn't give me the option online for this year), so I'm a bit lost how to claim the taxes back.

if you are in employment your new employer will sort it out.

if not the p50 is the relevant form.