Overpayment of Income Tax ?

greggp_2

I have just been checking my other halves payslips & p60 for the last tax year and I think she has overpaid tax last year and is now on the wrong tax code and therefore has paid too much tax for the first few months of this tax year.

She works part time 18 hours per week plus some overtime from time to time. She started this job in June 2010 and her tax code was BR from Jun-10 until Oct-10. Her code then changed to 578L from Nov-10 until Mar-11 but has now reverted back to BR code for Apr-11 & May-11.

Prior to her starting this current employment she was employed full time but was on maternity during this employment so not sure if this has something to do with the change in codes etc. She also received tax overpayment rebates for the previous 2 tax years.

However I would have thought for this coming tax year her tax code should have reverted back to the standard 747L so can’t understand why it has switched back to BR.

I have shown a breakdown below:

Please note that in the Nov-10 pay slip there was a minus PAYE figure so not sure if has corrected itself for the year I still think she has paid too much tax for the year even with this reduction.


I will try and post the breakdown in a separate post as it not letting me do it in a table format.

I have worked out that if using 747L tax code in April-11 she should have paid £73.86 PAYE and in May-11 paid £39.22 so she has overpaid considerably more. I will get her to contact HMRC by phone for them to get tax code checked and changed accordingly and then write to them enclosing the above information.

Any advice appreciated.



:beer:

greggp_2

JUN-10
Basic Pay £660.84 PAYE £132.00 N.I. £20.33
Tax Code BR Net Pay £508.51
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
JUL-10
Basic Pay £795.45 PAYE £159.20 N.I £35.14
Tax Code BR Net Pay £601.11
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
AUG-10
Basic Pay £815.79 PAYE £163.20 N.I £37.38
Tax Code BR Net Pay £615.21
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
SEPT-10
Basic Pay £795.45 PAYE £159.00 N.I £35.14
Tax Code BR Net Pay £601.31
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
OCT-10
Basic Pay £795.45 PAYE £159.00 N.I £35.14
Tax Code BR Net Pay £601.31
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
** NOV-10
Basic Pay £795.45 PAYE -£328.80 N.I £35.14
Tax Code 587L ** Net Pay £1089.11
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
DEC-10
Basic Pay £851.39 PAYE £72.20 N.I £41.29
Tax Code 587L Net Pay £737.90
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
JAN-11
Basic Pay £836.13 PAYE £69.40 N.I £39.61
Tax Code 587L Net Pay £727.12
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
FEB-11
Basic Pay £795.45 PAYE £61.00 N.I £35.14
Tax Code 587L Net Pay £699.31
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
MAR-11
Basic Pay £925.97 PAYE £87.20 N.I £49.50
Tax Code 587L Net Pay £789.27
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬


************************************************************************************************
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APR-11
Basic Pay £992.20 PAYE £198.40 N.I £46.80
Tax Code BR Net Pay £747.00
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
MAY-11
Basic Pay £819.00 PAYE £163.80 N.I £26.16
Tax Code BR Net Pay £629.04
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬


P60 Summary to Tax Year April 2011


Pay Tax
Earnings in Previous employment: £1479.34 £0.00
Earnings in this employment £8067.37 £733.40
Total for Year £9546.71 £733.40
Final Tax Code 578L

jem16

greggp wrote: »

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P60 Summary to Tax Year April 2011


Pay Tax
Earnings in Previous employment: £1479.34 £0.00
Earnings in this employment £8067.37 £733.40
Total for Year £9546.71 £733.40
Final Tax Code 578L

Going with the P60,

£9546.71-£5785 = £3761.71 @ 20% tax = £752.34

Seems like your OH has underpaid tax by £18.94. Why do you think she has overpaid?

Her tax code of 578L is less than the normal 647L - do you know why?

As to this year she should not be on a BR code unless she has a 2nd income.

Caz3121

the P60 details look like the correct tax was paid for the code. (assuming you have a typo and the P60 final tax code should be 587L) She should have a notification from HMRC on how the 587L was calculated - did she have private heath care or any other benefits in kind from her employer.

For this tax year, again there will have been a tax code notification that usually has the details to contact them if you believe this wrong - which is certainly looks like...they should amend it and like last year she will probably have a refund processed and a minus tax month

greggp_2

she has no benefits in kind, private health care, pension or any other source of income so her tax code I can only assume should have been the standard 647L for the previous tax year and for this year should be 747L god only knows why its reverted back to BR code - What I do know is she has overpaid tax by approx £250.00 in the last 2 months

greggp_2

no notifications from hmrc either.....

jem16

greggp wrote: »

she has no benefits in kind, private health care, pension or any other source of income so her tax code I can only assume should have been the standard 647L for the previous tax year and for this year should be 747L god only knows why its reverted back to BR code - What I do know is she has overpaid tax by approx £250.00 in the last 2 months

What tax code was she on before starting this employement in June 10?

greggp_2

previous employment had tax code of 587L - again no benefits in kind, health care 2nd income etc in this employment either!! However Maternity Pay was included in this employment. But I don't think she should still be on 587L or BR codes

jem16

greggp wrote: »

previous employment had tax code of 587L -

Which is why the employer operated the 587L tax code.

I would suggest she phones HMRC and gets this sorted out.

greggp_2

My other half phoned the HMRC at the weekend to discuss the above. They informed her that they hadn’t yet received her P60 from employer for the last tax year and that is why she was placed on a BR tax code. They changed this code to the correct one whilst she was on the phone. They told her to phone back if in mid-June if she hadn’t heard anything more by this time

Hopefully she should receive the refund for overpayments for April & May 11 salaries in her June salary now her tax code has been changed.
I think she may also have overpaid last year and maybe when HMRC receive her p60 they will respond.