Tax Codes After Being on JSA

[***inca***]

I have recently started a new job after being on JSA for the past few months.

 

I have not told my new job I was on JSA as I didn't want them to know I had been unemployed all that time - never looks good on a CV does it.

 

Anyway I have a P46 to fill in and give back to them - but what I want to know is are they going to find out via the tax code that comes back that I was claiming JSA etc?

 

I am a single person and was always on a single person's tax code before when I was working.

 

If someone could shed any light I'd be grateful, I am worrying now!

[insyder]

No, you're worrying unnecessarily.

 

Your tax code wouldn't show that you were on JSA and nor would any information from the tax office. All it would show is amounts of taxable earnings/income which would include JSA but wouldn't specify it individually.

 

However, the jobcentre's details are printed on the P45 that they send to you after you sign off, so you don't want to give your new employer that.

[Smiley_B]

Insyder said: "However, the jobcentre's details are printed on the P45 that they send to you after you sign off, so you don't want to give your new employer that."

 

Do you know how this can be avoided, as wouldn't it be compulsory to send your P45 (which would have this stamp on) to your next employer?

 

Thanks.

[diddled]

Its not compulsory to hand in a P45 to your new employer

[Smiley_B]

Thanks for replying. Sorry to sound ignorant, however, but how then does the new employer receive the correct information from you regarding the income you made and tax you paid prior to joining (in order to be put on the correct tax code). Is there another form?

[diddled]

Employers usually ask Employees who do not provide a P45 to complete a P46.

 

When the P46 is completed the employer sends it to the Tax Office and operates a week 1 basis for the emplyee until the Tax Office provides a code.

 

From memory the only difference is that a normal code operates on a cumulative basis whereas a week one doesn't

[insyder]

diddled is correct.

[installspark]

Also you can send your P45 to your employers Tax Office if you do not want them to see that you were on JSA.

 

Either way expect to be on an emergency tax code for a month or two whilst your tax coding is sorted out. This will either appear on your payslips as:

 

 

• 647L W1 (week 1 basis)
  
• 647L M1 (month 1 basis)
  
• BR (month 1 basis)
  

The first 2 codes will give you your personal allowance spread over the year on a non cumulative basis. BR means that you will receive no personal allowance and all of your taxable pay is taxed at 20%, this is also non cumulative.

 

On a 647L emergency tax code the amount of tax you pay will be near enough correct with little under or overpayment at the end of the tax year. With BR you can easily build up a substantial overpayment of tax. Any overpayment will be made to you via your pay (once the correct tax coding notification has been received by your employer) on PAYE or at the end of the tax year.