How much is Emergency Tax?
If you have started a new job you may have been put on an emergency tax code and as a result may have paid more tax then you need. Our tax experts answer some common questions about emergency tax:
How much is Emergency tax?
Emergency tax rates are higher than normal tax rates as you will not be receiving your annual tax free allowance. If you are on an emergency tax code you will be paying tax at the basic rate of 20%
Why would I be put on an Emergency Tax Code?
There a number of instances when you could be put on an emergency code. For example, if you start working for the first time, if you start a second job or if you start a new job and are unable to provide a P45, you may be put on an emergency tax code.
How can I tell if I am on an Emergency Tax Code?
You can tell if you have been placed on an emergency tax code by looking at your pay slip. If your tax code contains the following suffix or prefix: BR, X, WK1, MTH1 then you have an emergency tax code.
How do I claim my Emergency Tax Back?
In April your employer will give you a P60. Your P60 will show how much you have earned and how much tax you have paid in the year. Input these amounts into our tax refund calculator which will tell you how much you can claim back. You can then contact your tax office, providing them with a P91/P60/P45 and P85/P86 if applicable. Alternatively we offer an emergency tax refund service.
What if I have lost my P60 or was not given one?
You can ask your employer for a statement of earnings which is a sufficient replacement for a P60. Your employer is required by law to provide you with a statement of earnings and must do so for up to 6 years.
What if I was on an Emergency Tax Code in previous years?
You can claim back any emergency tax refund for the last 6 years. Try to find your P60’s or statement of earnings and use our tax refund calculator to see if you are due a refund for any of those years.
How long will it take to claim my Emergency Tax Back?
If you have your P60 or statement of earnings it usually takes between 4-6 weeks to get your tax refund. Often there are backlogs at the Inland Revenue and at these times it can take up to 90 days for refunds to be processed.
Have any more questions? Contact our emergency tax team directly