Taxed 50%?

NOVASTAR

My OH was redundant for 6 weeks and he started back working towards the latter part of the week, so got paid for 2 days then as normal 5 days each subsequent week as paid weekly.
The NI and Tax deductions for the full weeks have been done in a way I understand but for the first 2 days work the gross was £128 and he was taxed £58. I worked it out to be no more than £5 (Tax and NI), so don't understand this at all.
When he queried this with the person who did the wages he was told that it was because he had not paid enough tax previously.
He was in his previous job for two and a half years.
If anyone could let me know if these deductions are correct, i'd be ever so grateful!
Cheers

alwaysonthego_2

is he on the emergancy tax code?

unless he underpaid his tax, get him give the tax office a ring to clarify!

chrisbur

NOVASTAR wrote: »

My OH was redundant for 6 weeks and he started back working towards the latter part of the week, so got paid for 2 days then as normal 5 days each subsequent week as paid weekly.
The NI and Tax deductions for the full weeks have been done in a way I understand but for the first 2 days work the gross was £128 and he was taxed £58. I worked it out to be no more than £5 (Tax and NI), so don't understand this at all.
When he queried this with the person who did the wages he was told that it was because he had not paid enough tax previously.
He was in his previous job for two and a half years.
If anyone could let me know if these deductions are correct, i'd be ever so grateful!
Cheers

Can you advise details that were on the P45 handed in to the new employer. The details needed are the tax code and if X marked in box, at item 6; and gross and tax figures at items 7 and 8. Also the week or month number at item 7. Then the week number from that first wage of £128.

NOVASTAR

Hi alwaysonthego he did hand in his P45 on the second week but i'm pretty sure that the wages for both weeks were done on the same day. His tax code is 603L.
Thanks chrisbur for this info - as the P45 is now with the employer it may be a bit difficault to ask for it back as i don't want to rock the boat as he's not been in the job a month yet. All I remember is that the week number on the first wage was 42. I'll check the part of the P45 that he kept to see if i can get any more info for you.
Many thanks to both of you for your replies.

chrisbur

NOVASTAR wrote: »

Hi alwaysonthego he did hand in his P45 on the second week but i'm pretty sure that the wages for both weeks were done on the same day. His tax code is 603L.
Thanks chrisbur for this info - as the P45 is now with the employer it may be a bit difficault to ask for it back as i don't want to rock the boat as he's not been in the job a month yet. All I remember is that the week number on the first wage was 42. I'll check the part of the P45 that he kept to see if i can get any more info for you.
Many thanks to both of you for your replies.

All the details will be on the Part 1A that is kept by the employee. The reason I ask is that what can happen sometimes is that a P45 is issued say for example on week 43 and the first wage is paid on week 42. This means that tax allowance has been given that was not really due and has to be corrected, with the details I asked for i can check if this has happened. It would be useful if you could include details of that second wage you said you think was done at the same time as well.
I assume that the P45 was issued by the job centre is that correct?

NOVASTAR

Chrisbur - i'll check the P45 when I get home tonight and get back to you.
Many thanks

NOVASTAR

Hi Chrisbur. I have the P45 in front of me and there is no X marked in Section 6.
The tax code is 603L
Section 7 reads pay/taxable benefit 13758.23 and income tax of 1775.80
Section 8 reads taxable benefit 242.00
This is week 42 on the P45.
If you can make sense of this for me i would be really grateful.
Cheers

NOVASTAR

OOps - I forgot to add that the week following this was 320.00 and Tax 41.37 with NI 24.25. This seems to make sense to me.

chrisbur

The P45 figures are correct.
13758.23 less tax allowance at week 42 for 603L (4877.65) is 8880.58 and 20% of that is 1776.00. Rough working so a few pence out is expected.
The first payslip was also week 42 so I would expect a tax figure of around 25.60 (ie 20% of 128)
The next thing to check is that the P45 figures have been put on correctly. On the first payslip see if there is a previous pay and tax figure these should be the same as the P45 figures, and gross and tax to date columns which should be the P45 figures plus the 128 gross and 58 tax.

NOVASTAR

Thanks for this - infortunately he is not given payslips as normal but cash in an envelope with the only the gross weekly pay and deductions written on the face of it, so nothing to go on, i'm sorry to say.
I'm hoping that the tax will be looked at in April and adjusted by the Inland Revenue?
Thank you once again for you help chrisbur!

chrisbur

As tax looks OK on a week to week basis I think it is best to leave it for the time being. Make sure you keep all the envelopes though and then at the end of the tax year you can add up the gross and tax figures, add them to the P45 figures to get a total gross and tax for the year. As a quick check take the gross, deduct £6039, and divide the result by 5, this should be the tax paid figure. If it is out by much then contact the tax office. There should also be a P60 issued which should show the figures used for "this employment" and "previous employment" which you can check against your envelope total and the P45 figures.