Reduced tax code to repay owed tax

katiekatekate

So, I apparently owe £700 tax from 2007, and HMRC have reduced my tax code for this coming year (2011-12) to 396L to reclaim the underpayment.
I work variable hours each week
(I'm a student nurse so when I'm on placement I have to work a 40 hr week at the hospital, and do roughly 25 hours at my part time job. When I'm in lectures, I can generally fit in up to 40 hours at my job)

I'm trying to work out how much HMRC think I earn in an average week, and then I have a better idea if I'm on target to pay this money back by the end of the year. I graduate in the New Year and certainly don't want to work as a qualified nurse on a tax code of 396!
Also, it might influence whether it's worth it for me to stick to a set number of hours or try and work as much as I can when I can

Can anyone help me work this out please?

CLAPTON

as long as you earn at least 7,475 in the tax year 2011 - 12 then you will pay back the £700

are you sure you owe 700 from 2007 ; there are many posting saying that HMRC are getting things wrong

chrisbur

Your code for next year would I assume have been the standard 747L which would give you £7479 before tax is due. The code you have been given will give you £3969 before tax is due. The differance £3510 will have tax deducted at 20% so you will pay an extra £702 in tax and clear the outstanding amount. Provided that you gross at least £7479 the outstanding tax will be cleared, it does not matter how this is spread over the year.

Just read reply from CLAPTON,very good point, ake sure you do owe it.

Mikeyorks

katiekatekate wrote: »

I graduate in the New Year and certainly don't want to work as a qualified nurse on a tax code of 396!

But it wouldn't make any material difference. Unless you went over the 40% boundary at £42475?

As the restriction in your coding will just recover the £700 ...... so long as you earn above £7475 ..... and below £42475. It won't take more if eg you earn £30k as opposed to £18k.

katiekatekate

As the restriction in your coding will just recover the £700 ...... so long as you earn above £7475 ..... and below £42475. It won't take more if eg you earn £30k as opposed to £18k.

lovely, I think I've had the wrong idea about this! thank you

are you sure you owe 700 from 2007 ; there are many posting saying that HMRC are getting things wrong

well, I was surprised to say the least, but they've helpfully sent me a list of everything I earned in that year, and it does look like I've had my allowances twice. The thing is, I was working two jobs, and I KNOW about basic rate and things like that as I'd worked two jobs the previous summer and managed to sort it out there. I think what's happened is...
I worked three months full time at Pizza Hut (with allowances), then took a full time job in a pharmacy, carrying on part time at Pizza Hut for about four months, then went back to Pizza Hut full time for the rest of the tax year. I reckon I paid basic rate on my Pizza Hut earnings while at the pharmacy because I'm not daft, but I've had the allowances on both jobs. Which does make sense, it's just a bit upsetting when I think back to doing 60 hour weeks, and it feels like it wasn't really for very much when I've got a stonking great tax bill!

Thank you for everyone's help on this