Wrong tax codes

glyn260962

Has anybody had problems with tax codes being different from more than one income , when the tax office has set the codes ?

System

glyn260962 wrote: »

Has anybody had problems with tax codes being different from more than one income , when the tax office has set the codes ?

You need to post more details about what you think the problem is.

Include:

How many jobs you have

What Tax Year(s) are the codes for

What tax code(s) have been set for each job (Have your received P2 Coding Notices from HMRC)

What are the gross incomes from each of the jobs

Then, people on here will be able to offer help

antrobus

glyn260962 wrote: »

Has anybody had problems with tax codes being different from more than one income , when the tax office has set the codes ?

If you have more than one source of income (e.g. you have two separate employers) than the tax codes should be different. One should be a set of numbers followed by a letter (as in 747L) the other should be BR, for example.

As noted above, no one can say whether or not the particular tax codes you've been given are right or wrong without further info.

glyn260962

I have 2 pensions coming in with different codes and my main income. This is going back at least 6-7 years without my knowledge that it was wrong until it was pointed out by an advisor. He then sorted it out with the tax office and i was left with the 1st bill of 4k , which had to be paid in full. Then 1.5k over last year and £800 this year . Everything that has been earned has always been paid at source.

System

Your situation is not uncommon. Many thousands of people with more than one source of income have been effected in the same way, where their personal allowance has been allocated to more than one source of income.
Until recently, HMRC have not always been aware when someone has multiple income streams.

For example, for the new tax year 6 Apr 2011 to 5 Apr 2012 ...
If under the age of 65 then the standard tax code will be 747L giving a personal allowance £7475 tax free.
So if your main income exceeds 7475 then all of your personal allowance has been used up so the tax code(s) applied to other sources of income could / should be either "BR" if your total income from all sources is below the higher rate tax threshold (£42,475) or it could / should be "D0" if your main income already takes you above £42,475

So, the level of income from each source needs to be taken into account so that HMRC can apply the appropriate tax code to each income.

Note, if aged 65-74 then the personal allowance starts at £9,940
and if 75 or over then it starts at £10,090 but these two age related allowances may be reduced if your total income exceeds £24,000

Note, the "advisor" should have helped you negotiate with HMRC to set up a payment plan to spread the repayments over up to 3 years.

glyn260962

I HAVE 2 PENSIONS AND A MAIN INCOME. ALL DIFFERENT TAX OFFICES AND CODES. ALL INCOME HAS ALWAYS BEEN PAID AT SOURCE. THIS HAS BEEN GOING ON FOR AT LEAST 6-7 YEARS WITHOUT MY KNOWLEDGE UNTIL AN ADVISOR POINTED IT OUT. HE THEN SORTED IT WITH THE TAX OFFICE AND I WAS LEFT WITH A BILL OF £4000 TO BE PAID STRAIGHT AWAY. THEN £1500 OVER LAST YEAR and £800 THIS YEAR . THE TAX OFFICE HAS SENT OUT LETTERS TELLING WHAT MY CODES WERE FOR EACH ITEM , BUT THEY HAVE OBVIOSLY BEEN WRONG ON THERE PART FOR THIS TO OCCUR. I APPRECIATE ANY INFO OR ADVICE ON THIS MATTER TO SOLVE THIS PROBLEM OR POSSIBLY BE RE-EMBURSED BECAUSE IT WAS THEIR MISTAKE

glyn260962

My tax code last year was 150k (that hurt) . What i cant understand is when my national insurance number is put in by them , why do all my details not appear . They cant do as this would not have happened

System

You may also be interested in reading this MSE article and the assoicated forum thread with questions / answers on the topic.

Click Here

P.S.

My tax code last year was 150k (that hurt) . What i cant understand is when my national insurance number is put in by them , why do all my details not appear . They cant do as this would not have happened

I believe, that it is only very recently that HMRC have started to use National Insurance numbers to pull together all the relevant info for an individual. Sounds really basic doesn't it, but HMRC have only just worked it out seamingly.

glyn260962

Would i be eligable to claim back my tax paid to the taxman even though they set my codes wrong,with a A19 form ?

System

glyn260962 wrote: »

Would i be eligable to claim back my tax paid to the taxman even though they set my codes wrong,with a A19 form ?

There is no form for the ESC A19 concession.

If you have read the MSE article about ESC A19 and you think you meet the criteria, then you would need to write to HMRC explaining your case and requesting a refund.

Include the following in the letter:

HMRC stresses it is vital consumers issue the following information:

• what tax year and underpayment the claim relates to;
• what information HMRC failed to make proper and timely use of (include evidence such as information sent to HMRC);
• what date this information was provided;
• reason(s) why you thought your tax affairs were in order prior to receiving an underpayment notice.

You may have read other threads on this forum about other people who have made claims, it is a long process and you may have to write more than once to HMRC but if you have a valid case then it is worthwhile writing.

glyn260962

The information has been in front of the HMRC all the time because they were the ones who set my codes. Everything that i earn or from pensions is paid direct at source. Is that a valid case to complain even though the advisor who spotted this and not the HMRC , and it was he who got in touch with the HMRC ? Please keep all the info and advice coming . THANK YOU