Hello All
My husband is just about to be made redundant at the end of this month and will need to sign on. We have virtually no savings so will qualify for benefits. My worry is that he has had a company car and medical insurance and therefore has a K180 tax code . Obviously this tax code will not be right once he no longer has the company car amd medical ins, but I'm worried about how the job centre will tax his benefit at this code and it's going to take the tax office time to sort it out (past experience with them has taught us not to expect anything to take less than 3 months - except once when we owed them money, then they managed to get it sorted in a fortnight!).
So, my question is - would we be breaking the rules if we withheld the P45 and let them tax him on an emergency code? We're not trying to evade paying any tax due or get anything we're not entitled to, because the tax office will of course make sure all tax due is paid when they issue a new code, but with a mortgage, no savings and two kids we don;t really want to have to pay anything we don;t have to, even though it would be refunded eventually.
Hope that makes sense, would be grateful for any advice at all.
Thanks
Jo