Incorrect Tax

Hi Guys,

Hoping you might be able to help me, I believe my employer has not paid the full amount of tax to HMRC, it would appear that they have paid tax and NI only on my basic wage for the year 2015/2016 and not paid the tax and NI on any bonuses. They have however deducted these amounts from my wages and appears so on my pay slips.

According to my P60 for the tax year 2015/2016 I paid £1982.60 tax and £1994.88 NI to HMRC, referring to my individual pay slips for that period they suggest that I have actually paid HMRC £3516.97 Tax and £2317.76 NI.

I have raised this with my employee a month ago and chased it recently, they have come back with the following response

"the bonus payment was part of the year end submissions when we usually upload final figures for each employee. All payroll records are balanced and adjusted at the end of the year depending on tax codes, start/leave dates, etc. It seems that this didn't happen in your case and I have already queried to HMRC. We have physically paid the tax amounts that you see on your payslips so it's also our interest to check what happened.
I am still waiting for an answer.... and will update you as soon as I have an update."

Can anyone shed any light or offer any advice on this matter?

Thank you!

Comments

  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    It seems pretty clear that your employer has made an error and is in the process of resolving it with HMRC. I'm not sure what more you want us to say than they have already told you.
  • As far as I am aware HMRC tax payments towards bonuses should be made monthly not at year end?
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    edited 25 May 2017 at 8:15PM
    As far as I am aware HMRC tax payments towards bonuses should be made monthly not at year end?

    You're right, and if bonuses were paid at points other than in the last pay period of the year then tax and NI should have been deducted and paid then - it appears that the former was done but not the latter. But to repeat, it seems to have been a mistake by your employer, they are sorting it out, it won't impact you as long as HMRC have the correct figures, so it's really not anything to worry about at this time.
  • Xbigman
    Xbigman Posts: 3,884 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    OP needs their P60 reissued with the correct figures, although there's no rush. Thats about it.




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