Emergency tax is something that many UK workers experience, and while it may seem daunting, it is possible to claim it back. Whether you’ve been put on an emergency tax code or had incorrect deductions from your earnings, you’re entitled to a refund. At CANGAF Accountants, we specialize in helping you navigate the complexities of reclaiming overpaid taxes, ensuring you get what’s rightfully yours as efficiently as possible.

Emergency tax typically arises when your employer doesn’t have sufficient information about your income and tax history, leading them to assign you an incorrect tax code. This often happens when you start a new job, and it may result in you paying more tax than necessary. In such cases, it’s important to address the issue quickly to avoid ongoing overpayments. Below is a detailed guide on how to reclaim emergency tax and why enlisting the services of a professional accounting firm like CANGAF Accountants can simplify the process and ensure a faster refund.

What Is Emergency Tax?

Emergency tax is applied when your employer doesn’t have the necessary details to assign the correct tax code, which usually leads to overtaxation. Some of the most common situations that lead to emergency tax include starting a new job without providing your P45, or your tax details being out-of-date or not yet processed by HMRC.

Your tax code, found on your payslip, determines how much tax is deducted from your salary. When you’re placed on an emergency tax code, like 1257L W1, 1257L M1, or BR, your tax may be calculated on a non-cumulative basis, meaning it only considers your current earnings without taking previous income or personal tax allowances into account. This results in a higher tax deduction until the issue is resolved.

At CANGAF Accountants, we regularly see clients who have been placed on emergency tax codes due to changes in employment or errors in the tax system. Recognizing that you’re on the wrong tax code is the first step to claiming back your emergency tax, and our team can help ensure your tax code is corrected promptly.

Step 1: Identify If You’re Paying Emergency Tax

To begin the process of claiming back overpaid tax, it’s essential to identify whether you’re on an emergency tax code. You can check this by looking at your payslip and noting the tax code your employer is using to calculate your deductions.

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Common emergency tax codes include:

• 1257L W1/M1: These are temporary, non-cumulative tax codes that don’t take previous earnings into account. This code is often applied when HMRC hasn’t received full details of your income.
• BR: This code means that all your income is being taxed at the basic rate of 20%, with no personal allowances factored in.

If you find yourself on one of these codes, it’s crucial to correct it as soon as possible to avoid paying more tax than you owe. CANGAF Accountants can assist you in confirming whether you’re on an emergency tax code and offer guidance on the next steps to take.

Step 2: Correct Your Tax Code

Correcting your tax code is essential to stop further overpayments. You can do this by ensuring your employer has the right information to update HMRC records, or by contacting HMRC directly to update your details. There are several ways to correct your tax code:

1. Submit a P45: If you’ve started a new job, you should provide your new employer with your P45 from your previous job. This document shows your previous income and tax paid, enabling your new employer to apply the correct tax code.
2. Complete a P46 (Starter Checklist): If you don’t have a P45, you’ll need to complete a P46, also known as a “Starter Checklist.” This helps HMRC update your records and assign the right tax code.
3. Update Your Personal Tax Account: You can log into your HMRC personal tax account and review or update your income details and tax code. This is a fast and efficient way to correct any issues.
4. Contact HMRC: You can also contact HMRC directly by calling 0300 200 3300. At CANGAF Accountants, we can take care of this on your behalf, ensuring all the required information is submitted and that your tax code is updated without delay.

Step 3: Claim Back Your Overpaid Tax

Once your tax code is updated, your employer will usually adjust your future tax deductions automatically, but this won’t cover the tax you’ve already overpaid. To claim back the emergency tax you’ve overpaid, you need to file a claim with HMRC.

1. Automatic Refund via Payslip: After correcting your tax code, your employer might automatically adjust your payslip to refund the overpaid tax. This refund will be reflected in your subsequent pay and may be issued as a lump sum or spread across multiple payslips.
2. Direct Claim to HMRC: If an automatic adjustment isn’t made, you can claim the refund directly from HMRC. You’ll need to provide them with information about your earnings, deductions, and the corrected tax code. CANGAF Accountants can handle this process for you, ensuring all paperwork is accurate and filed correctly to expedite your refund.

Step 4: Receive Your Refund

After submitting your claim, HMRC will process the refund and either send it directly to your employer to adjust your future payslips, or they’ll issue the refund to you via direct bank transfer. This process typically takes between 4 to 8 weeks, but delays can occur if information is incomplete or incorrect. By working with CANGAF Accountants, you can avoid these delays, as our team will ensure that all required documentation is properly submitted to HMRC.

How CANGAF Accountants Can Help

Navigating the complexities of emergency tax can be confusing, especially if you’re unfamiliar with tax codes and HMRC procedures. At CANGAF Accountants, we have the expertise to handle your tax matters efficiently, ensuring that your overpaid tax is refunded as quickly as possible. Our experienced team can help with everything from correcting your tax code to filing the necessary paperwork with HMRC.

• Tax Code Review: We’ll check your current tax code and ensure it’s correct.
• Documentation Assistance: We’ll handle the submission of your P45, P46, or any other necessary forms.
• Claim Tracking: We monitor the progress of your refund, keeping you informed every step of the way.
• Professional Support: Our accountants will advise you on any additional tax reliefs you may be entitled to claim.

With CANGAF Accountants, you don’t have to worry about dealing with HMRC yourself. We’ll take care of everything, so you can focus on what matters most to you.

Get in Touch with CANGAF Today

If you think you’ve been placed on the wrong tax code and believe you’re owed a refund, don’t wait. CANGAF Accountants is here to help you reclaim your overpaid tax quickly and efficiently. We are experts in tax recovery and can guide you through the entire process, ensuring you receive every penny you’re owed.

Contact Us
CANGAF Accountants
235 Tonge Moor Road, Bolton BL2 2HR
Email: info@cangafltd.com
Phone: 01204 859315

Reclaim your hard-earned money with the help of our experienced team at CANGAF Accountants today!