P45 ?

always_skint

I ceased work on the 26th Nov this year and have only just realised something may be wrong with the figures on my P45 but I'm unsure of this, hence the question.

Leaving date..........26/11/2010
Week number 34
Tax code..........647L
Total Pay to Date.....................9054.00
Total Tax to Date........................205.60

Total pay is correct but the tax figure of 205.60 is what tax I paid on the day of leaving, not what has been paid since the start of this tax year.

Can anyone tell me if my P45 figures are correct ?

Thanks A.S

Quenastoise

You might like to check first that the P45 details agree with the tax and income to date showing on your last payslip. If not, go back to the employer and ask them to reissue the P45.

Assuming that no discrepancy arises, I would have expected your tax to be:

income of £ 9054
less: personal allowance: 6475 * 34 weeks/52 = £ 4233
Taxable income: 9054 - 4233 = 4821
Tax to date: 4821 x 20 % = £ 964.20

(that's if I'm correct, it's been 6 years since I had anything to do with payroll calculations !)

When you give your P45 to your employer, he/she will add the income previously earned and tax previously paid to your salary with the new employment and at that point recalculate the tax to date. If tax was previously underpaid, expect a big amount of tax in the first month with the new job to catch up with the underpayment.

always_skint

Quenastoise wrote: »

You might like to check first that the P45 details agree with the tax and income to date showing on your last payslip. If not, go back to the employer and ask them to reissue the P45.

Not as simple as that, the firm I worked for is still in 1970's mode and wages were paid in a brown wage envelope and written in pen.

My last and final wage packet states;
Wages..............40hrs ..@ 6.00 =....240.00
Holiday pay ...19days @ 48.00 = 912.00
Gross pay .....................................= 1152.00
- Tax....................................................205.60
- NI....................................................... 83.82
Net Pay................................................862.58

Also I would just like to point out that I will not be seeking further employment as I am nearly 65 and have applied for Pension Credit.

Mikeyorks

always_skint wrote: »

Can anyone tell me if my P45 figures are correct ?

Thanks A.S

The tax figure is certainly incorrect. If your payslips show more tax has been deducted you need to contact the old employer.

They mustn't issue a new P45 ..... the fix is here :-

http://www.hmrc.gov.uk/employers/p45-employee-leaves.htm#6

If you've started with a new employer you need to advise them otherwise you will pay a significant sum in Dec! Get them to put you on 647L Month 1 ....... which will hold the fort until HMRC contact them.

Mikeyorks

always_skint wrote: »

Also I would just like to point out that I will not be seeking further employment as I am nearly 65 and have applied for Pension Credit.

Forget my last bit then. But you need your old employer to write HMRC and issue a correction - copy to you. When you get that ........ you will probably (depends when State Pension kicks in) be due a refund for the Personal Allowance not yet utilised. Also - if 65 before 6.4.11 then you should be due the higher personal allowance. In your contact with HMRC they should provide a P161 (pension enquiry) which will result in the age allowance being resolved.

chrisbur

The tax figure on a P45 should not be used by a new employer they should use the gross figure, tax codeand week/month number, to work out a tax figure; and it is that figure that they should use. Part 3 of the P45 has a section for the new employer to advise the tax office if their tax figure that they are using is different to the figure on the P45.