New Tax Code OT W1, Very Confused, threshold?

2

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  • received another weeks wages today
    Still have the tax code OT W1

    asked my boss if we could have a chat today
    as my tax code is wrong

    and was told
    'All you do is cause hassle, talk to me about it next week' :(

    this time next week,
    I will have been paid again,
    no doubt with the wrong tax code again!

    From what you guys have been saying I think I owe around £100 in tax as I have only paid £20 so far this year
    I'm slightly concerned that it will be taken out all at once and leave me with no wages for a week :huh:

    not impressed
    x
  • Mikeyorks
    Mikeyorks Posts: 10,369
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    From what you guys have been saying I think I owe around £100 in tax as I have only paid £20 so far this year

    I'm assuming no tax deducted this week? In which case the Code '0T' isn't being used as you would pay 20% every week. So your payroll lady must be using NT.

    You need to chat to the boss and quietly point out that any under deductions will be his responsibility as PAYE is not being operated correctly. May just cause him to take some responsibility.
    If you want to test the depth of the water .........don't use both feet !
  • Mikeyorks wrote: »
    I'm assuming no tax deducted this week? In which case the Code '0T' isn't being used as you would pay 20% every week. So your payroll lady must be using NT.

    You need to chat to the boss and quietly point out that any under deductions will be his responsibility as PAYE is not being operated correctly. May just cause him to take some responsibility.

    Sorry didn't explain this weeks wage slip well
    I did pay tax on OT W1

    Wage Slip 4:
    01/01/2010
    £23.00 Tax Paid
    60p NI Paid (!)
    Earned £91.90 After Tax
    Tax Code OT W1
    Total Gross Pay £5567.92

    Total tax paid TD £40.80

    totally fed up of this now
    harrummphh

    will try and see if he's feeling more reasonable next week!

    thanks for the help everyone!
    at least I'm armed with what to say!
    x
  • Mikeyorks
    Mikeyorks Posts: 10,369
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    I hope that's your error with the date? :) (s/b 01/01/2011)?

    Right ..... so she is at least operating on £zero allowances. Even though there's no justification for doing so! Quite bemusing.

    At this point in the year (£5568 gross pay) you should have paid around £142 in tax ........ so you are sitting on a £100 underpayment.
    If you want to test the depth of the water .........don't use both feet !
  • Mikeyorks wrote: »
    I hope that's your error with the date? :) (s/b 01/01/2011)?

    Right ..... so she is at least operating on £zero allowances. Even though there's no justification for doing so! Quite bemusing.

    At this point in the year (£5568 gross pay) you should have paid around £142 in tax ........ so you are sitting on a £100 underpayment.

    lol yes, should have been 01/01/11
    well spotted!

    I thought as much,
    I remember something similar happening last year and them taking £70 in tax off me all at once in one week (leaving me with around a tenner)
    hopefully that wont happen again, if they are trying to recoup it now

    thanks for all your help
    you have been very constructive/ informative!
    x
  • ha - Mikeyorks
    just found my old thread from my last tax balls up

    http://forums.moneysavingexpert.com/showthread.php?t=2349983&highlight=speed+queen+tax

    so that is what may happen when my tax code gets corrected :/

    thought u may find it interesting
    x
  • Mikeyorks
    Mikeyorks Posts: 10,369
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    you have been very constructive/ informative!
    x

    Thanks. And a bit perceptive at post #7 where I suggested they're getting your Codes out of the christmas crackers! ;)

    Seriously .... there's little excuse for this. If your payroll lady is doing the wages every week then it's just as easy to get it right as get it wrong. And far less onerous on you ... not knowing what the wages slip is going to conjure up this week.
    If you want to test the depth of the water .........don't use both feet !
  • Mikeyorks
    Mikeyorks Posts: 10,369
    First Anniversary Combo Breaker
    Forumite
    edited 30 December 2010 at 11:36PM
    ha - Mikeyorks
    just found my old thread from my last tax balls up

    http://forums.moneysavingexpert.com/showthread.php?t=2349983&highlight=speed+queen+tax

    so that is what may happen when my tax code gets corrected :/

    thought u may find it interesting
    x

    Right ...... you need to look at Post #6 (on that last year's thread) from Chrisbur? As that fairly well explains the rather mysterious 0T that keeps cropping up.

    If you aren't completing a P38 (?) ........ then it needs a hard word with the boss to ensure the Code issued by HMRC is used. And not a bit of DIY from payroll.

    Might be worth reading :-

    http://www.hmrc.gov.uk/paye/employees/start-leave/special/students.htm
    If you want to test the depth of the water .........don't use both feet !
  • jimmo
    jimmo Posts: 2,281
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    edited 31 December 2010 at 12:26AM
    Maybe I should have been a bit more forthright earlier when I suggested you have a word with payroll. Whilst HMRC may be the right place to get tax advice if your boss thinks you are a pain in the rectum for moaning about your tax deductions then you really need to work on your people skills and get him on your side.
    If, as a result of your phone call to HMRC, the payroll lady gets a letter from HMRC saying code 647L is correct and she does exactly that you could be hit with no pay for some weeks whilst the arrears are paid off.
    If she puts you on code 647 W1 that allows you to earn £124.50 a week without paying tax and if you earn less than that your unused allowances will go begging.
    If she keeps you on code OT W1 you will pay 20% tax on everything and whilst it may be painful you will be gradually knocking down the arrears that have built up.
    That really is a mess and you need to keep a cool head.
    I would still suggest that the best solution for you would be for you to sit down with your boss and the payroll lady and thrash out the best solution for you. If you cannot do that then maybe another call to HMRC asking them to issue code 647L W1 will get you on the right track for the time being but nobody can tell whether you will be underpaid or overpaid by the end of the tax year.
    That all depends on how much you earn in the remainder of the tax year.
    If you are underpaid at the end of the year HMRC will not send you a bill, they will seek to recover the underpayment over future years.
  • Mikeyorks wrote: »
    Right ...... you need to look at Post #6 (on that last year's thread) from Chrisbur? As that fairly well explains the rather mysterious 0T that keeps cropping up.

    If you aren't completing a P38 (?) ........ then it needs a hard word with the boss to ensure the Code issued by HMRC is used. And not a bit of DIY from payroll.

    Might be worth reading :-

    http://www.hmrc.gov.uk/paye/employees/start-leave/special/students.htm

    Aha,
    very useful
    I completed a P46 form for when a student goes over their personal allowance a couple of weeks ago
    Ticking box A
    '– This is my first job since last 6 April and
    I have not been receiving taxable Jobseeker's
    Allowance, Employment and Support Allowance
    or taxable Incapacity Benefit or a state or
    occupational pension.;

    Apparently when you tick box A they 'start deducting tax using the code OT on a week 1/month 1 basis'

    so thats right then as far as that form is concerned.....

    I suppose it makes sense, but If its not what tax code I'm supposed to be on as far as HMRC are concerned, I dont want it to come back and bite me in the bum

    but I'm still confused,
    It would have been nice to inform me what the forms/ changes meant, and why I needed to do them

    will try go through it all with my boss next week
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