Opinons/advice required - tax credits when switching employer

b34mer23

Hi all, looking for a bit of advice please.

I was made redundant in my last employer and finished up with them on the 20th of June (notice period until 20th July was waived on 20/06). Then went on to get another job and started on the 6th of July.

Got my last paycheque (for July) from the previous employer (paid mid-month as usual for that employer), and had been taxed completely on higher rate. Reason I was given by the HR dept is that I wasn't entitled to tax credits as I didn't work for the company in July. That kinda makes sense to me, but is it right?

Bigger issue for me then is that I before I got first paycheque of new job, the payroll dept. advised to contact Revenue as it didn't look right to them. I rang Revenue, they had my new employment on file, but the tax credits hadn't been switched over, guy i spoke said he'd "seen this happen a few times before" and proceeded to switch everything over there and then. Has any one heard of this? Seems like it's something gone wrong on Revenue's side there tbh. Of course, switch wasn't made in time, and again completely taxed at higher rate.

When I asked about claiming back, he said the only was a P21, which of course I can only request in January (only 5+ months away, like). Does anyone think I've a chance of getting anything back in the meantime?

As I said, the call I had (which would be recorded their side), did give me the impression that my employer had done everything right and there was some disconnect on Revenue's side, happy to admit I'm wrong there though of course.

I'm just waiting on my payslip to have on me before I ring Revenue again, but any advice or info would be much appreciated.

EDIT - Am I overthinking this too by any chance? Wishful thinking but is there any chance the extra tax would come back next paycheque, like what happens w/ emergency tax? And apologies for some woeful spelling.

carleigh

Until Revenue receives your P45 from your previous employer there will be 2 live employment on record, and therefore your tax credits would not be reallocated unless you contacted them. This is something you would have to request yourself on receipt of your final pay check from your previous job. It doesn't mean that Revenue are at fault. If there is no P45 on record the job won't be ceased and remains on record.

When you have your P45 send that in to Revenue and ask for a cumulative cert to be issued. At this stage in the year they may not issue one which unfortunately means your only chance of seeing if there is anything owed to you is waiting to request a P21 in the New Year.

b34mer23

carleigh wrote: »

Until Revenue receives your P45 from your previous employer there will be 2 live employment on record, and therefore your tax credits would not be reallocated unless you contacted them. This is something you would have to request yourself on receipt of your final pay check from your previous job. It doesn't mean that Revenue are at fault. If there is no P45 on record the job won't be ceased and remains on record.

When you have your P45 send that in to Revenue and ask for a cumulative cert to be issued. At this stage in the year they may not issue one which unfortunately means your only chance of seeing if there is anything owed to you is waiting to request a P21 in the New Year.

Thanks Carleigh, there was a lot of wishful thinking in my original post.

jcon1913

carleigh wrote: »

Until Revenue receives your P45 from your previous employer there will be 2 live employment on record, and therefore your tax credits would not be reallocated unless you contacted them. This is something you would have to request yourself on receipt of your final pay check from your previous job. It doesn't mean that Revenue are at fault. If there is no P45 on record the job won't be ceased and remains on record.

When you have your P45 send that in to Revenue and ask for a cumulative cert to be issued. At this stage in the year they may not issue one which unfortunately means your only chance of seeing if there is anything owed to you is waiting to request a P21 in the New Year.

can you clarify why they would not issue a new tax free allowance?

carleigh

jcon1913 wrote: »

can you clarify why they would not issue a new tax free allowance?

As this stage of the year, unless you insist on a cumulative cert, a week 1 cert may be issued to err on the side of caution. If a cumulative cert was issued if there was an underlying underpayment that had arisen anytime since January 1st, it would be collected in the OP's first wage once the cumulative cert has been actioned. A week one cert is never issued to cause hardship, it's issued to avoid it.

jcon1913

carleigh wrote: »

As this stage of the year, unless you insist on a cumulative cert, a week 1 cert may be issued to err on the side of caution. If a cumulative cert was issued if there was an underlying underpayment that had arisen anytime since January 1st, it would be collected in the OP's first wage once the cumulative cert has been actioned. A week one cert is never issued to cause hardship, it's issued to avoid it.

So a week 1 cert would collect the shortfall over the remainder of the year? Or pay back any refund due over the remainder of the year?

carleigh

jcon1913 wrote: »

So a week 1 cert would collect the shortfall over the remainder of the year? Or pay back any refund due over the remainder of the year?

A week 1 certificate treats each week of employment in isolation i.e. Each week is treated like your first week in employment, you get a weekly portion of your tax credits and cut off point. If there is an underpayment or a refund situation this is not dealt with until the end of the year when a P21 is requested.

jcon1913

carleigh wrote: »

A week 1 certificate treats each week of employment in isolation i.e. Each week is treated like your first week in employment, you get a weekly portion of your tax credits and cut off point. If there is an underpayment or a refund situation this is not dealt with until the end of the year when a P21 is requested.

So if you were on Emergency Tax you have to wait 4 and a half months for a refund? Thats not great.

carleigh

jcon1913 wrote: »

So if you were on Emergency Tax you have to wait 4 and a half months for a refund? Thats not great.

Possibly, everyone's situation is different. If you don't have a P45 from a previous job this year how could you expect the emergency tax to be refunded without knowing the amount of tax that had been paid.

jcon1913

carleigh wrote: »

Possibly, everyone's situation is different. If you don't have a P45 from a previous job this year how could you expect the emergency tax to be refunded without knowing the amount of tax that had been paid.

Most people have a P45 if they have a previous employment, 4 and half months is not really justified, as most employees that move from job to job are most likely to be on minimum wages in the first place eg restaurant staff. Do Revenue have any plan to change this does anybody know?

carleigh

jcon1913 wrote: »

Most people have a P45 if they have a previous employment, 4 and half months is not really justified, as most employees that move from job to job are most likely to be on minimum wages in the first place eg restaurant staff. Do Revenue have any plan to change this does anybody know?

This is not always the case. Some people have to wait a number of months, even when Revenue get involved on an individuals behalf to request the details.

jcon1913

carleigh wrote: »

This is not always the case. Some people have to wait a number of months, even when Revenue get involved on an individuals behalf to request the details.

Hmmm - that's not my experience, and clearly someone who is waiting on a refund of PAYE from a period of Emergency Tax is disadvantaged by having to wait for 4 and half months to get a refund that they are entitled to. If they have no P45 then fair enough, but who leaves an employment without a P45?

I am curious to know if this is widespread i.e. if employees are waiting on refunds of PAYE at this stage of the year even though they have a P45 and everything else is in order?

carleigh

jcon1913 wrote: »

Hmmm - that's not my experience, and clearly someone who is waiting on a refund of PAYE from a period of Emergency Tax is disadvantaged by having to wait for 4 and half months to get a refund that they are entitled to. If they have no P45 then fair enough, but who leaves an employment without a P45?

I am curious to know if this is widespread i.e. if employees are waiting on refunds of PAYE at this stage of the year even though they have a P45 and everything else is in order?

Of course it is not the ideal situation, but it does happen. You don't just get your P45 the day you leave your job. Some people have wages owed to them, holiday pay etc, and if an employer states that they will forward it to them, they could be waiting a number of weeks, possibly months. An employee can also be in receipt of their P45 but the former employer may have not sent a copy to Revenue. There are many different scenarios.

relax carry on

Lot of crossed wires here.

Two scenarios.

1 Unemployed and looking to claim tax back during an active tax year. A form p50 is required with the p45. Waiting times to claim are as follows:

are receiving Jobseeker’s Benefit, you should wait eight weeks

are not receiving Jobseeker's Benefit, you should wait four weeks

were on emergency tax, you can claim immediately.

Processing time by Revenue can take a number of weeks depending on the time of year and the refund is from Revenue direct.

http://www.revenue.ie/en/jobs-and-pensions/periods-of-unemployment/how-to-claim-a-tax-and-usc-refund-if-you-are-unemployed.aspx

2 Switching jobs. Revenue process the request by the employee or employer relatively quickly once a p45 is available. A new cumulative tax credit cert issued and the refund comes from the new employer in your wages once the new employer acts in the cumulative tax credit cert.

http://www.revenue.ie/en/jobs-and-pensions/emergency-tax/how-to-get-a-refund-of-emergency-tax-and-usc.aspx

Revenue tend to stop issuing cumulative certs during the second week of December as its normally too late for an employer sort it. Any refunds due are then dealt with directly by Revenue when a p21 balancing statement is requested for the relative tax year.