Underpaid TAX - Many Tax codes & Unemployment

mpoker84

So i've had a busy year, leaving my job in april, taking a few months out, and start another a few months on... however, my Tax now seems to be an issue.

Ill throw a load of numbers and dates below, which will hopefully get the questions rolling, so I can determine the ultimate question... is my current tax code now corrrect?


April 2009 - Join my company (Company A)
P60 2009 -2010 details as follows:
TOTAL FOR YEAR: £24761.61
TAX DEDUCTED: £4757.60
FINAL TAX CODE: 113T

Left Company A on 28th April 2010.
P45 Figures
TOTAL PAY TO DATE: £3166.58
TAX TO DATE: £585.20
TAX CODE AT LEAVING: 138 T

Benefits from this company were a company car, fuel in kind benefit,

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During time of unemployment, no benefits were claimed, no short term employment, and no other sources of income etc etc.

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Joined Company B 12th July 2010
Most recent pay slip dated 26/11/2010
TOTAL GROSS PAY TD: £9775.57
TAX PAID TD: £1414.80
TAX CODE: 647 L

Benefits from this company are a company car, and business milage paid, but NOT personal milage.

Now this is where is gets a little more interesting, ive just received a PAYE Coding notice for tax year 2010-11.

Date of notice 25 November 2010
QUOTE: "Your new tax code for the 6 April 2010 to 5 April 2011 is K103, which replaces 138T"

Please note that the code so say being replaced, is different from that on my payslip, the last time 138T was used, was in my previous employment, before my period of unemployemnt!

This is the workings out on the coding notice:
Personal Allowance: £6475
Car Fuel: -£2340
Car Benefit: -£5177 -£7517
tax due on: -£1042

Should car fuel be on here - as i receive no personal fuel allowance?

What should I do about the discrepancy in tax codes?

Does the -£1042 mean i owe tax (research tells me this is the case with a "K" code)?

If the above question is correct, will i expect to see this disappear from my next pay packet, or is this to be spread across the next few until April?

Any help or questions would be totally appreciated to help me out with this.

I've tried to be totally open with figures, to get the best possible answer, but if there is more I can give to get a clearer answer, please ask!

Thanks for reading, and thanks in advance for help and suggestions,

Mark

Mikeyorks

mpoker84 wrote: »

1) What should I do about the discrepancy in tax codes?

2) Does the -£1042 mean i owe tax (research tells me this is the case with a "K" code)?

3) If the above question is correct, will i expect to see this disappear from my next pay packet, or is this to be spread across the next few until April?

1) With the exception of the 647L on the P45 (which looks odd .... does it reflect a payment after leaving) all the other codes appear to fairly uniformly reflect deductions for the 'benefits in kind' of the car / fuel.

2) No. It's just that the deductions (£7517) exceed your personal allowance (£6475) .... so the 'K' reflects this value is negative. And it's actually added to your pay when calculating the PAYE due each month.

3) It operates across the remaining months to April.

Can't help any more without knowing (you have P11Ds from your employer showing the taxable benefit? ..... that's where HMRC get the deductions from, their copy) just how up to date your codes are with relation to the P11Ds. If the £7517 deduction relates to Company B ..... then you're reasonably up to date.

mpoker84

hi mikeyorks

thanks for your reply. I've got a P11d from my previous employer, but nothing as yet from my current employer.
Ill dig around tomorrow and post up the details if it helps?

In terms of my current employer, I no longer get fuel in kind, thats why I was unsure if that should appear in my 'deductions?'

Is it also normal for the tax office have a different code on record to that of my employer?
ie, they are changing me from T to K, yet employer has me on L code?!

Mikeyorks

mpoker84 wrote: »

Is it also normal for the tax office have a different code on record to that of my employer?
ie, they are changing me from T to K, yet employer has me on L code?!

No .... shouldn't be the case. It's not so much the code letter ..... as the fact the only 'L' code you've mentioned (on the P45) would be creating a significant underpayment. But as you only got that late Nov ...... your employer wouldn't normally bring it into play until your Dec pay day. But no harm checking they have it (K103).