BR Tax Codes --- Help needed

met_2

just noticed that im on BR Tax code having been self employed for 10 months, then full time with one company for 1 yr and then another for 2.5 years!! our payslips are all online and i have to admit ive never actually checked or looked or bothered too

anyhow guessing that ive only been paying 20% flat on all monies? after having a quick search i see that its 20% to £37,500 and there is a tax free amount, im 35 married with 2 kids and we ge higher rate DLA for one of our kids if that makes a difference. I earn more than £37,500 does anyone have any practical advice, its been like this for 3.5 years and the HRMC havent contacted me yet and i just noticed it.
im guesssing i will end up owing a few thousand a year for the past 2.5 years does that sound about right, any advice out there for me, or websites i should look at.
as say i was self employed for around 10months and then went into a full time job for 1year then into another full time job fr the past 2.5 years, . should my employer have notified me or given me a form to fill out earlier etc? thanks in advance

Any

Did you not fill self-employment form during all this time?

Are you saying that this all happened AFTER you gave up being self-employed?

IF that is the case, then they owe you loads of money.

Do you have all your P60 forms?

Chinkle

You have been missing out on your personal allowance, but also not paying top rate tax on earnings over £37.5K. Until all the calculations are done including any other benefits/allowances I wouldn't like to say whether you're in for a rebate or will owe them. Do you earn a lot more than £37.5K?

But get in touch with HMRC with copies of all your paperwork for those years P60's/P11D, etc - you need to get it sorted out.

met_2

thanks for the replies, unfortuanately in this case just over £40k more inc my bonus and car allowance :-( its been 3.5 yrs, how much am i in for? and how long have i got to save in your opinion???

Chinkle

In which case don't worry - the personal allowance is worth over £6K so by my quick mental arithmetic I reckon you're probably due a decent rebate.

So get your paperwork today as soon as .... then happy spending!

met_2

surely not, i was thinking that i owed a huge amount and was working out which child i could sell ...

so just to be clear after being self employed

yr1 i earnt about £60k inc car allowance and bonus and paid BR on all of it at 20%
yr2 i earnt about £65k inc car and bonus and paid 20%BR
yr3 i earnt about £67k inc car and bonus and its been 20% BR again......:o

System

met wrote: »

unfortuanately in this case just over £40k more inc my bonus and car allowance

Sorry but £60K-£67K is not just over £40K so it's very likely that you will owe HMRC a considerable sum of money. You need to contact them asap to get your code rectified so that the situation does not get worse and let them assess the relevent years to enable you to negotiate a longer period to pay them back over.

Chinkle

Yes, I retract my last comment - £67K is A LOT over £37.5K. Even allowing for the personal allowance that's still around £23K that you need to pay an additional 20% on, PER YEAR.

Own up now, if they catch you later the pain will be even worse. Sorry if you got carried away thinking how you would spend the rebate, but if you don't present the true facts we can't accurately advise.

met_2

:Dsorry, i knew what i mean in my head when i said £40k over. this last year i actually got £63 base, £5k car, and then a £10k bonus so its was all in around £78 which is why i said £40k over the £37.5 if that makes sense.
anyhow, how long have i got before they catch up with me, as i say its me that has noticed and ive not called them yet, i have over paid on roughly 3.5 yrs worth of £6k free at 20% right so thats around , £4200 that ive overpaid, is that offset against the additional 20% that i owe on the £37.5? also what sort of payment plan will i get away with, i literally have no savings, a £4k credit card and about £3k overdrawn everywhere else, not a sob story just the facts of not being able to get my hands on around £12k in tax bill? any ideas? if they load my new code to pay it all back in one go we'll be out of our house as the mortgage wont get covered, any advice?

also where do i leave you guys feedback, notice you have feedback on your autosigs?
cheers, may get drunk tonight to make myself feel better.....lol:D

Chinkle

I was generalising about the amounts involved.

Go to the HMRC website and you'll get the amounts of personal allowance for the tax years involved. They also have a tax checker - it's called student tax checker - but it works for everyone. Gather together your P60's and plug in the figures for gross salary and tax paid for each year. This will give you a broad outline of what might be due. But it will differ slightly as the tax office will assess your full circumstances including any employment benefits, company car etc. So expect to pay tax on these too.

Are you sure you never realised how little tax you were paying?????

met_2

Cool thanks mate, any idea on negotiating payments?
Nope genuinley no clue, never checked once thought I was actually paying the right amount around £1,200 a month