Incorrect Tax Code BR

adamh79

Hi

I switched jobs about a year ago and when I started my new job I gave them my P45 as requested with my old tax code of 522L. However I have since noticed that my current employers have always been paying me under the emergency tax code BR. My question is am I paying too much tax?

From my last wage slip:

Salary £1,942
Pension - 220
Tax - 382 (approx 20% of salary)
NI - 160

I though that the tax rate was 22% so am I paying too little? Other I've tallked too say I should be due for a rebate because I'm paying too much - so I'm confused as to waht the situation is.

Thanks in advance
Adam.

tinkerbell84

Yes you are.

Ask them for a P46.

robnye

if you switched jobs over a year ago ie before april 2008, then your current company should have put you on standard tax code.... might be an idea to talk to your local tax office

simply speaking yes you are paying way to much tax.... because the BR tax code does nto give you any tax free allowance, which is approx £93 per week

tinkerbell84

robnye wrote: »

if you switched jobs over a year ago ie before april 2008, then your current company should have put you on standard tax code.... might be an idea to talk to your local tax office

They shouldn't just apply the standard tax code at all, unless advised to by the tax office (which is what the P46 is for).

I know of people that had (wrongly) paid at BR for years

adamh79

Ah excellent.
So at £93 a week I should only be paying 22% on 1,942 - (93*4) = 1,570. 22% of that is £345 rather than the £382 I'm currently paying. So I shuld be due somewhere in the region of £37 for evey month I've worked - is that about correct.

The HR/Payroll department at my work are notorious for being incompetent - some people wo have been with the company over 2 years are still on emergency tax codes!

P.S. The employer concerned is one of the large UK banks - is it any wonder that they lost so much money given that they can't even get the tax codes for their employees correct when they have been supplied with a P45!!!!

CLAPTON

last tax year 2007-8 the tax free allowance was 5225 and then one pays 10% on the next 2230 and then 22%

this year your tax free allowance is 6035 then you pay 20%

SonniC

Have you tried asking your Payroll Mgr why your record is being operated on BR when you handed in a P45.

Might be the best place to start