Tax code D0. Yikes

Pumpkinface_2

My husband has just received a letter from HMRC advising that he will be on tax code D0 from April which apparently means he will be taxed at 40% on all his income from his employer.

Where on earth did this come from! My husband has one job and it is his one and only source of income. He earns around £55k per year.

Is this going to be easy to sort out or do we have to resign ourselves to a lower monthly income for the forseeable future until it is?

Thanks

System

When the P14's were submitted by employers last year it is likely the new HMRC system created a duplicate employment source for you husband and so it looks as if he has 2 jobs paying him £55k per year hence the issue of a DO code for one of them. The new systme reads all the information held about the taxpayer and automatically does the annual codes without a human having to look at it.

Theoretically this should smooth itself out within a couple of years of the new system being launched. In the meantime HMRC will be fielding a huge number of calls whilst taxpayers try to get their records corrected. :eek:

Call HMRC and let them know so they can delete the duplicate source and get the correct code to him in time for 2010/2011.

System

Just to add, when your husband calls HMRC tell him to try this number first -

0845 3000 627. HMRC have opened this line so that they can measure the number of incorrect code calls they receive.

The_Jester

http://news.bbc.co.uk/1/hi/business/8478271.stm

John_Pierpoint

http://forums.moneysavingexpert.com/showthread.html?t=2244201

Pumpkinface_2

I just wanted to pick up on the thread I started earlier in the year. I followed the advice I received, or rather my OH did and he soon received a new coding notice his deductions in March were as they should be.

However, he was paid on Friday for April and the tax code has reverted to the D0 one again!

Is it possible that they only reset the tax code for the 2009/10 year but didn't carry it forward to 2010/11? Should he follow this up with HMRC again or is it his payroll department that has made an error.

Edit: My OH has confirmed that the coding notice letter was corrected for 2010/11 two months ago. But the D0 code was used instead.

Mikeyorks

Post #5 of this thread might just apply?

https://forums.moneysavingexpert.com/discussion/2417471

........... but I'd check with the pension provider first as being the people who might answer the 'phone first! If they say they still have D0 for 10-11 then I'm afraid it's off to HMRC - but at least you know to ask if the silly box was ticked?

Pumpkinface_2

Mikeyorks wrote: »

Post #5 of this thread might just apply?

https://forums.moneysavingexpert.com/discussion/2417471

........... but I'd check with the pension provider first as being the people who might answer the 'phone first! If they say they still have D0 for 10-11 then I'm afraid it's off to HMRC - but at least you know to ask if the silly box was ticked?

Thanks Mike. My husband will check with his employer whether they received the new coding notice (it is not a pension, just his one and only employer). The ticking box thing is daft - when would it ever be appropriate to not notify the employer of the correct tax code.

We are £800 short this month because of this.

jem16

Pumpkinface wrote: »

Thanks Mike. My husband will check with his employer whether they received the new coding notice (it is not a pension, just his one and only employer). The ticking box thing is daft - when would it ever be appropriate to not notify the employer of the correct tax code.

We are £800 short this month because of this.

Do let us know if it is the ticking box mistake - or if it's just me that this stupid thing happened to.

Sending it to the employer should be automatic!

anna_grant

My OH has the same problem. D0 applied incorrectly this month (employer confirms that's the code they received) - £630 down on salary (has pension also which has he tax allowance applied to it). HMRC phone says 'sorry, we're busy. Phone back later.' and then disconnects!

Mikeyorks

Culled from other advice around here ...... try ringing them early tomorrow for optimum (?) chance of success!