Tax confusion

citylover

Hi guys

Just looking for a bit of help and clarification really. I graduated from University in June this year and went on JSA for approximately 2 months. Prior to this, I had a part-time Christmas job in December 2009, which I received a P45 for. I started my current employment in September and was asked to provide a P45. Not knowing any different, I submitted the P45 I received from my part-time job.

I've had a few payslips since I started my employment, all showing me on the tax code 647L and paying about £170 in PAYE and NI per month, after whoch I'm left with about £920, which isn't a problem.

However, it has recently come to my attention that I should have submitted a P45 that I should have received from my jobcentre. I ased them and they confirmed it had been sent, so it has simply been lost in the post. I contacted the tax office and they told me that I should ask for a statement of earnings and then send it to them, in order for things to be sorted. However, the helpful lady on the phone suggested that I was paying about the right amount of tax so I shouldn't worry about underpaying, but more about having overpaid.

Is this correct? Have I got any reason to expect a letter in April saying I owe tax if I don't submit this statement of earnings? Really worried about this!

Mikeyorks

citylover wrote: »

Have I got any reason to expect a letter in April saying I owe tax if I don't submit this statement of earnings? Really worried about this!

Yes - the likelihood is of an underpayment (but not of a magnitude that should worry you!)

Because you've had taxable JSA .... that hasn't been taxed? So there's a small amount of taxable pay to add to your 'gross pay to date'. And which will, in turn, inflate the amount of tax due to date.

So it's worth getting it sorted. But - if not - HMRC will simply code out any underpayment ...... the year after next.

citylover

Yeah I realise it wouldn't be much, but still! The odd thing is though, on my payslips, the amount of 'gross pay to date' is more than what I've been paid at my current employment. So does this mean they're including my pay at my part-time job as part of this year's taxable pay by mistake? Or have they just realised my error, looked into it and discovered my JSA pay which they've automatically taken into consideration?

Mikeyorks

They should have ignored the pay on the P45 as being in a previous year. But ? May do no harm to check with them.

I can't see how they would be aware of the JSA figures ... as you didn't provide a P45 from them. HMRC should have their copy of the DWP P45 somewhere ..... but it doesn't sound as though they have advised your employer of correct start figures ...... as you haven't submitted a (correct) P45 or P46 in order to make the link? But no harm you asking your payroll where the excess comes from?

CLAPTON

if you add up the P45 earning figure and your earnings in this employment what answer do you get?
is it the year to date figure?