Help!! taxed all pay

sahra

sorry, not sure if this is the right place to post
This is hard to explain, so will try to make it readable!!
Can anyone tell me, if you've had 2 different employers (not at same time) in the same financial year, can your current employer add on your previous earnings from your last job on your payslip (in the payed to date column) ?

Hubby has been taxed £500 in last weeks weekly pay (get 200 a week) and the to date column has jumped up by 2500 for some reason since last week employer and tax office says it's correct, so no pay last week or no pay this week:mad:

will post some more details as I get them, thanks:o

kelloggs36

I don't understand what you are saying. The income to date figures just show how much he has earned in total since April and should not affect his usual wage. Surely he was taxed at source in his last job? If so, then the amount of tax paid should only relate to his current earnings, unless they have not updated his tax code and are taxing him as emergency tax?

Hoddie_2

It sounds like your husband did not pay enough tax earlier in the tax year and this has now been rectified. The pay-to-date figure should equal the total gross income he has had since April 6, from both the current and any previous employer. It should also include any taxable benefits such as JSA or IB. Try and check that this figure is correct, if it's not then talk to the tax office.

If it is, perhaps you can may still be able do something about it. Note that this will mean your husband will not have paid enough tax and will have to pay it at a later date (although not all at once).

1) Check with the employer to see whether they would be willing to re-work the last wage if the tax office agreed to fax them a new tax code.
2) If yes, explain to the tax office what has happened, and that the employer is willing to re-work the wage. They should agree to issue the emergency tax code.
3) If yes, ask them to fax it direct to the payroll department (they'll need you to give them this fax number).

sahra

Thanks for your replys:o

He changed jobs in June, so can't understand why only now this has come about (2 weeks before christmas:mad: ).
Hubby's tax code is 503L.
Tax office took the 500 in 1 go, so hubby actually owes the company this money, but the boss is willing to give an advance pay and to pay back over 25 weeks.

System

Sorry but the Tax office didn't take the money off your husband unless they demanded the money in a letter direct to him.

Employers collect tax for the Inland Revenue by using whatever tax code the Inland Revenue give them in their PAYE calculations. That's what the employers payroll department does. That of course is assuming that the Inland Revenue have actually been informed by either your husband or his new employer that he is now working for that company.

Did the tax office issue a new tax code recently? If not and your husband has been with the employer since June then I can't see any reason why they would have deducted so much money in one go unless their payroll staff haven't been doing their calculations correctly since he started with them.

However the PAYE system is set up in such a way that employers are not supposed to leave an employee without any money at all. If not enough tax has been previously deducted at source by an employer then it can be sorted at the end of the tax year by adjusting the next years tax code to collect any money owed over the next tax year.

You need to do as Hoddie says and get the pay reworked by getting the tax office to contact his employer.

mrcow

sahra wrote:

Hubby's tax code is 503L.
Tax office took the 500 in 1 go, so hubby actually owes the company this money, but the boss is willing to give an advance pay and to pay back over 25 weeks.

Tax code 503L means that he can earn £5030 per year before paying any tax.

I don't understand what "the £500" that you refer to is?

He is either up to date on his tax payments or not. If he paid his tax correctly at his last job then he should have been fine.

malcindebt

has your husband gone from weekly to monthy pay or vica versa.

If so it could be a case of him having too many allowances allocated in one month/week.

For example.

If he was previously paid monthly and got his last pay in the period 06 June 2006 - 05 July 2006 and they operated tax code 503L, then he went to his new job who operated the emergency code 503LW1/M1, and was paid by them also within this period, he will have been given too many allowances and so now, when the employer has been informed of his previous pay and tax details, they have brought his details up to date.

sahra

malcindebt wrote:

has your husband gone from weekly to monthy pay or vica versa.

If so it could be a case of him having too many allowances allocated in one month/week.

For example.

If he was previously paid monthly and got his last pay in the period 06 June 2006 - 05 July 2006 and they operated tax code 503L, then he went to his new job who operated the emergency code 503LW1/M1, and was paid by them also within this period, he will have been given too many allowances and so now, when the employer has been informed of his previous pay and tax details, they have brought his details up to date.

Yep, that makes sense!
old job was payed monthly, new job started as monthly, but changed to weekly after a month or so.
Will have to see tomorrows pay now, as boss has issued a 'week 1' form or something, to make sure he has a pay.
Thanks everyone:o