P45 Tax Paid Figure Wrong ?

always_skint

Can someone advise me on how much tax I should have paid on earned income of £9054 from April to November 2010 ?
Tax code 647L
Age 64
Married.
Wife not working.

Reason;
I finished work on 26/11/10 and went on pension credit.
Company issued P45 but just noticed that the total tax to date figure is wrong @ £205.60 which was actually the amount shown on my last pay packet including 4 weeks holiday pay.
I have informed the company and all they said was 'we'll look into it'

I have tried to work it out myself (with difficulty) and arrived at a figure in the region of £900 tax paid for the above period.

As the end of the current tax year is fast approaching I need to sort this out as I don't want to be owing any monies to the tax man.

System

always_skint wrote: »

Can someone advise me on how much tax I should have paid on earned income of £9054 from April to November 2010 ?
Tax code 647L
Age 64
Married.
Wife not working.

Could you just clarify something...

Was the £9054 the total gross pay before any deductions for the 8 months (April to November) ? Or, was it the net take home pay ?

It is the Year to date Gross pay that is best needed to calculate the appropriate tax.

always_skint

BAA1 wrote: »

Could you just clarify something...

Was the £9054 the total gross pay before any deductions for the 8 months (April to November) ? Or, was it the net take home pay ?

It is the Year to date Gross pay that is best needed to calculate the appropriate tax.

I'm not sure, the amount shown on my P45 says Total pay to date 9054 . 00

Edit:
If it helps, my gross weekly pay was £240

System

always_skint wrote: »

I'm not sure, the amount shown on my P45 says Total pay to date 9054 . 00

Edit:
If it helps, my gross weekly pay was £240

OK, based on the £240 / week gross = £12,480 gross annual income
With a personal allowance of £6475
So : 12480 - 6475 = 6005 taxable pay @ 20% = £1,201 tax for a full year
This works out at approx. £100 per month so you will have most likely paid approx. £800 in tax for April to November.

Since pension credit is non-taxable, you should get a tax rebate since you only earned a total gross of 9054 - 6475 = 2579 @ 20% = £515 tax due.
So I believe you should expect a rebate of approx. £285
Assuming you had no other taxable income during that same tax year.

always_skint

BAA1 wrote: »

OK, based on the £240 / week gross = £12,480 gross annual income
With a personal allowance of £6475
So : 12480 - 6475 = 6005 taxable pay @ 20% = £1,201 tax for a full year
This works out at approx. £100 per month so you will have most likely paid approx. £800 in tax for April to November.

Since pension credit is non-taxable, you should get a tax rebate since you only earned a total gross of 9054 - 6475 = 2579 @ 20% = £515 tax due.
So I believe you should expect a rebate of approx. £285
Assuming you had no other taxable income during that same tax year.

No other taxable income.

Will I have to apply for any tax rebate due or will it be paid automatically ?

Thank you for your help BAA1

dori2o

always_skint wrote: »

No other taxable income.

Will I have to apply for any tax rebate due or will it be paid automatically ?

Thank you for your help BAA1

it should comnethrough automatically. BUT, only if your employer rectifies the P45 situation as these are the figures HMRC will use to calculate the refund.

always_skint

dori2o wrote: »

it should comnethrough automatically. BUT, only if your employer rectifies the P45 situation as these are the figures HMRC will use to calculate the refund.

That's whats concerning me, by my ex-employer putting by mistake the figure of £205.60 total tax paid on my P45, the last thing I need is a bill for £xxx amount of unpaid tax.
I'll give the wages dep't a ring tomorrow to see what the situation is re amending the P45

dori2o

always_skint wrote: »

That's whats concerning me, by my ex-employer putting by mistake the figure of £205.60 total tax paid on my P45, the last thing I need is a bill for £xxx amount of unpaid tax.
I'll give the wages dep't a ring tomorrow to see what the situation is re amending the P45

Good idea.

Keep on at them, phone every other day if you have to. They have an obligation to operate PAYE correctly, and completing P45's is part of that obligation.

If it is not resolved and dealt with soon drop HMRC a letter, photocopy the last payslips you have and the P45 and send them to HMRC who will investigate themselves if you have no joy with the employer.

Caz3121

dori2o sorry to hijack but I have a similar question.

Hubby redundant in June - got P45 which he gave to DWP (was ill so went on ESA) we noticed that the P45 was for the last salary prior to redundancy payment - the final payslip that included the redundancy has the total income and tax paid and all looks fine but this does not match the P45 (which is a lower amount) . Should he be going back to former employer and asking them to reissue something? (he is still not working and I have calculated about 900-1000 tax to come back based on the correct numbers)

dori2o

Caz3121 wrote: »

dori2o sorry to hijack but I have a similar question.

Hubby redundant in June - got P45 which he gave to DWP (was ill so went on ESA) we noticed that the P45 was for the last salary prior to redundancy payment - the final payslip that included the redundancy has the total income and tax paid and all looks fine but this does not match the P45 (which is a lower amount) . Should he be going back to former employer and asking them to reissue something? (he is still not working and I have calculated about 900-1000 tax to come back based on the correct numbers)

What is it that does not match, Pay or Tax.

Dont forget that redundancy payments are tax exempt on the first £30k.

If they issued a P45 for the period upto his last working day, then made a payment after this for unused holidays, backpay, etc then they should also have issued a P45 for this.

This is known as a payment after leaving and should be taxed at the basic rate (BR).

Caz3121

dori2o wrote: »

What is it that does not match, Pay or Tax.

Dont forget that redundancy payments are tax exempt on the first £30k.

If they issued a P45 for the period upto his last working day, then made a payment after this for unused holidays, backpay, etc then they should also have issued a P45 for this.

This is known as a payment after leaving and should be taxed at the basic rate (BR).

thanks have dug out all the documents
P45 was correct for the period of working with total pay + tax matching his last working payslip
Further payslip issued for redundancy, lieu etc which is BR MTH1 as the tax code and has a gross taxable pay to date and tax paid to date that is pay from employment that matches P45 + taxable pay from redundancy.

No second P45 was issued and the copy that went to DWP has working only figures

I have done a calculation and the
P45 figures + taxable benefits generate pretty much the same tax overpayment as
the last payslip figures + taxable benefits

so the question is does the BR1 mean we do not need to bother stirring this up...trying not to build in delays as the refund is very much needed