Everyone Pays TAX!!!

Darkstar

My wife recently went back to work after a long maternity leave, 2.5 years. She started work in October and her salary is low, approx £10,000. Apart from a few pounds interest on her bank account she has earned nothing else this tax year. Unfortunately she is paying nearly £76 tax per month. When I asked her to query this her payroll manager told her that "Everyone pays tax and she is no different". My understanding is that as her pay in 2008/9 will not exceed £6,035 she should not be liable for any tax and her payroll should be able to work this out.

fengirl_2

She needs to sort out her code number so that her employer can refund the tax overpaid. I am guessing she is on emergency code - 603L week 1. She should write to her tax office telling them what she was doing from 6/4/08 til she started this job and they can then issue appropriate instrictions to her employer.

Darkstar

Thanks Fengirl, I will pass on that information.

She did hand in her P45 for the £256 JSA that she received between deciding to start looking and getting a job. But her payroll seem to have ignored that as her taxable pay to date does not include it and yes she is on 603L week 1, for November and December pay.

fengirl_2

Then she needs to ask payroll why they are ignoring the P45.

chrisbur

Darkstar wrote: »

Thanks Fengirl, I will pass on that information.

She did hand in her P45 for the £256 JSA that she received between deciding to start looking and getting a job. But her payroll seem to have ignored that as her taxable pay to date does not include it and yes she is on 603L week 1, for November and December pay.

If the P45 had a cross next to the tax code at item 6 and the earnings figures were at item 8 then the P45 has a week1/month1 code and her employer is correct in using this code. They will have sent part 3 to the tax office who will eventually advise the correct cumulative code and tell them what previous earnings to use. When this happens any overpayment of tax will be adjusted in her wages.
If the P45 did not have a cross next to the tax code at item 6 and the earnings were at item 7 then the P45 has a cumulative tax code and this should have been used by the employer along with the previous pay details. If this is the case she needs to ask her employer why it was not used.

Darkstar

A big thak you to you all, that makes perfect sense and I wish her payrol could have explained that to her instead of just telling her "Everyone pays TAX" so stop complaining.