Hi Slackrat 77,
Your payroll dept messed up big time..... In terms of what has actaully happened though,it sounds all correct so far...IF you have been given a week 1 / month 1 indicator? You should notice either 'M1' or an 'X' after the tax code on your payslip? This means that your payroll dept. have asked the inland revenue (by way of the P46) to check your tax code notice, sort of. In the meantime they are taxing you on the correct codes but in a non-cumulative way, which mean the overpaid tax won't come back to you yet.
They had been using the BR code incorrectly for several months before submitting the P46. The emergency tax code to use if they didn't have P45 details should have been 543L M1 - from the start - they are obviously useless muppets in your payroll dept!! Because of their mistake you have been overpaying tax all year, BUT, the only way to pay it back is to issue the P46 corrcetly, which it seems they have done.
They are not allowed to take the M1 indicator off until advised by the IR now - even though it was their *** up to start with!
You could speed the process up by calling the tax office yourself and asking them to change your code back to a basic 603L. They will notify your employer, who will then ammend the code & you would receive a refund in your following pay.
If you look at your payslip you should see a tax office reference in the format 123/12345 - if not ask the payroll dept for this reference number. If you post the 1st 3 digits on here I will let you know the correct tax office to call. They will help you, its not in their interests to have it hanging around as an overpayment, and if you don't sort it out by 5th April you will need to request a refund directly from the IR which can be a right old hassle So try get it sorted before then!
The IR have some absurdly complex rules about tax and paye, but your payroll dept, should have known better in this case. Like I said. Muppets. You couldn't make it up!
Try & get the tax office ref & it can be sorted quickly - you could end up with an extra £300 or so in your December wage if you act now!