I'm scared

Barneysmom

I just found out my tax code has been wrong all year it's bee at 420l when it should've been 4T! OMG how much will I have to pay back next year now? I'm on about 20k and have to have a company car for work.......

patanne

Are they changing you to a week1/month1 code for the rest of this year? That will stop you from owing them even more. If so then it looks like you have been underpaying by about £70 per month. Have they sent the new tax code for 10/11 if that is 4T then the rough (I can't do more without the exact figures) tax amount will be about £330 per month. I'm sorry to be the bearer of bad news. Your can check HOW rough my figures are by looking at your last pay slip where I think the total tax year to date will be about £2100. You do need check what is going to happen for the rest of this year though.

Tarasam

Have you checked the revised amount in the code is correct, ring HMRC and check it. Also as PP states make sure they've issued it on a Wk1. I know of some instances where the new system is putting the car benefit in twice but i dont think this is the case here, def worth double checking though.
PS. the tax office is open this week and its dead quiet at the mo.

Barneysmom

Flippin' 'eck Jimmo that was a bit harsh, I was asking for help!!!
I couldn't do my job without the car, I did 60,000 miles last year....no, it's not a perk IMO, I hate driving now.

Thank you to patanne and kellyshay, I will get it sorted out asap.
£70 a month is going to bash me hard, especially with my hubby not working due to his epilepsy, but never mind eh.......we'll get through it, despite certain people 'having a go'.......

donquine

jimmo wrote: »

I hope you’ll take this in the spirit it is intended but it is going to be a bit harsh.
[...]
In terms of salary you are not exactly setting the world on fire but you are doing better than an awful lot of people and you have a company car.
[...]
For goodness sake get a grip As long as you have a company car you are susceptible to tax problems

I'm fed up of this "you earn more than me, so none of your problems count" attitude that I've noticed on MSE more and more recently. We're all here to help and be helped, whether we're on JSA or paying 50% tax. In fact, I would suggest the higher someone's income, the more stupid spending that can be cut back on.

Of course a company car has tax implications. But most lay people would expect their payroll department to deal with it and do so correctly. Your post isn't harsh but fair - it's just harsh.

Barneysmom, I would advise calling HMRC. Someone at your work has made a genuine mistake and HMRC are very helpful when it's obvious things have gone wrong unintentionally. They'll probably just cut your personal allowance so the tax you owe is gradually clawed back over the coming year. If your husband isn't able to work for medical reasons, make sure you're not missing out on any benefits he may be entitled to.

You've found out now - the error could have gone undetected for a lot longer and the total amount to pay back could have been more painful! Ring HMRC, have a chat and don't let this spoil your Christmas. I hope you have a wonderful one with your family.

Barneysmom

donquine, thank you for your help, it means a lot just to know somebody is listening :cool:
My boss is going to get it sorted out for me, the tax office are going to send him a form, they had the P11d is it called? - but never corrected my code for some mad reason.
I am totally clueless about tax codes, I can make good bread and stuff like that lol but tax is beyond me - no I won't let it spoil Christmas , they can come and chase me after

mrcow

Well the good (?) news with the tax office is that they'll generally take the money at source and will do it quite effectively so the debt isn't hanging over you for years. When it's an overpayment, we usually get a cheque. It's happened to us a fair few times when we've changed cars or got a fuel card etc. You tell the tax office of what's changing and still it can take a while to sort.

And before anyone else wants to have a pop at people who end up paying too much or too little tax over the year - I for one uinderstand the income taxation system very well. I know (after car, fuel card, health care, milegage allowances, childcare vouchers etc) exactly how much tax we as a family should have paid. It's not always that simple though - especially when circumstances change throughout the year. The tax system can generally be quite reactionary especially when circumstances change, often with such delays which can mean that it's not possible to effectively work out where you are with it completely accurately until you have all your paperwork at year end.

donquine

Barneysmom wrote: »

donquine, thank you for your help, it means a lot just to know somebody is listening :cool:
My boss is going to get it sorted out for me, the tax office are going to send him a form, they had the P11d is it called? - but never corrected my code for some mad reason.
I am totally clueless about tax codes, I can make good bread and stuff like that lol but tax is beyond me - no I won't let it spoil Christmas , they can come and chase me after

A form P11(d) contains details of your taxable benefits e.g. a company car. Assuming your employer doesn't have any special arrangements in place, your employer should send this to HMRC every year and provide you with a copy for your records. If you don't fill out a tax return, it's just a piece of paper you need to look at once, check for any glaring omissions and then file away.

If you don't notice any change to your tax code in your January payslip, talk to your boss/payroll department. Make sure you're not forgotten about. Once you have your new tax code, check it, either by ringing HMRC or by posting details here. You'll feel a lot better once you know the situation is being dealt with.

Tarasam

Barneysmom wrote: »

donquine, thank you for your help, it means a lot just to know somebody is listening :cool:
My boss is going to get it sorted out for me, the tax office are going to send him a form, they had the P11d is it called? - but never corrected my code for some mad reason.
I am totally clueless about tax codes, I can make good bread and stuff like that lol but tax is beyond me - no I won't let it spoil Christmas , they can come and chase me after

One piece of advice dont wait for your boss to sort this, do it yourself, even if he sends the info today the likelihood of HMRC looking at it in the next 6-8 weeks at least is nil. Get your Car dets, list price, CO2, date of registration, date you got car details and ring them now, it'll be checked and sorted immediately. Plus if your boss rings they wont discuss in any depth with him and certainly wont discuss any underpayment with him.
I dont know your boss but i know for a fact that mine wouldnt give a rats !!! about sorting out my finances and tax. Its not their priority.

Hope you get it sorted.

Mikeyorks

Barneysmom wrote: »

£70 a month is going to bash me hard ....

Bear in mind (I'm assuming the benefit for the car is circa £4160 - you've had that benefit since at least Apr 09 - and it's continuing) .... that the £70pm is just to stand still (ie £4160 @ 20% = £832 / 12 = £69.33).

If the 4T (hopefully Month 1) is for 09-10 and activated for Jan pay ..... then you've also accumulated an underpayment of circa £630 (9 months @ £69.33) so far this year. If HMRC have had unprocessed P11D data - then it's worth while asking they code the underpayment out over more than just next year? Otherwise you'll be paying the £70 plus £52.50 (£630 / 12) of the underpayment each month.

Not normally done for underpayments less than £2k ........ but if they've contributed to the underpayment via unprocessed data ..... it can be done without much hassle :

http://www.hmrc.gov.uk/incometax/code-underpayments.htm

patanne

I know nothing at all about the tax credits (or whatever name they have) that you can get when you have children, but your username implies that you do have children. Are you able to claim anything & if so does is take into account your pay before tax or is it your 'take home' pay that they base it on. If it is your take home pay then that should help ease the situation a little. (This may be rubbish but just a thought)