What is Emergency Tax?
Emergency Tax is a temporary rate of tax applied to your pay if your employer has not received sufficient information from the Inland Revenue (HMRC) to calculate the correct tax on your pay.
How much is it?
Emergency Tax is normally charged at the basic rate - currently 20%.
How can I tell if I am paying Emergency Tax?
You can tell If you are paying Emergency Tax from a Code on your Payslip! Every Payslip has what is called a Tax code, which is the Inland Revenue's instruction to the Employer on how to charge you Tax.
What are the Emergency Tax Codes?
This depends on the year. For 2010/2011 the emergency tax code is 647L. Depending on how this is calculated, this code may also be in the form 647L W1 or 647L M1.
When will I be charged Emergency Tax Rates?
You may be charged on an emergency tax basis if
- You have started a new
job and have not received your P45 from the previous employer
- You were previously self employed
- You have started a new job and have not worked previously in the year or received any state benefits in the year.
- You may also be charged emergency tax if you start a second job
- If you start to receive a pension, you may be put on emergency tax rates.
Can I reclaim a Tax Refund of Emergency Tax in the same year?
If you get your Emergency Tax Code corrected before the end of the tax year, your employer will be able to refund any overpaid tax to you through your payslip.
Can I still reclaim overpaid Emergency Tax after the Tax Year has ended?
Yes, you can still claim back overpaid emergency tax if the tax year is over as a Tax Refund. You can make an application to the tax office directly, use an accountant, or use the specialist services of a Tax Refund Agent.