We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
W1/M1 Tax Code Error
Options

littlemissbossy
Posts: 805 Forumite


in Cutting tax
My husband started a new job last month, when he got his first payslip I noticed that his tax code said 405L1.
I asked him to query this with his wages dept as to me it looked like he had been put on a W1/M1 basis, his P45 had said just 405L.
His wages dept have said that they have made a mistake and will correct it but my question is will he have overpaid or underpaid on his tax?
Thanks for any help.
I asked him to query this with his wages dept as to me it looked like he had been put on a W1/M1 basis, his P45 had said just 405L.
His wages dept have said that they have made a mistake and will correct it but my question is will he have overpaid or underpaid on his tax?
Thanks for any help.
Don't wait for your ship to come in, swim out to it.
0
Comments
-
Depends... What was the date of leaving on the P45? Any other income since 5th April 2011??0
-
Deleted_User wrote: »Depends... What was the date of leaving on the P45? Any other income since 5th April 2011??
Thanks for your quick reply
Date of leaving from P45 13.05.11
Only income from 06.04.11 - 13.05.11 was his salary from the job he's just left.
HTHDon't wait for your ship to come in, swim out to it.0 -
Possibly underpaid as he has probably been given some tax free allowance twice but it all depends on pay dates, if weekly or monthly paid and when he left / started etc.0
-
If he has paid tax on a week1 basis rather than standard he will have probably overpaid his tax. W1/M1 tax codes mean that tax is not deducted on a cumulative basis.0
-
Only way to tell is to check the month numbers on the P45 and the payslip. If P45 has month month 2 and payslip month 3 then tax will be correct to within a few pence. If P45 and payslip have the same month number then he will have been undertaxed, and if there is a gap between them he will have been overtaxed. Either way it will be corrected when the code is applied on a cumulative basis. If there was some change in the pay interval eg weekly to monthly it is more complicated and would need full details of P45 and pay.
Just a thought the code of 405L is lower than the basic code, does the reduction still apply? If for example it was for some benefit in his old job that he no longer gets then needs to tell tax office to get his code corrected.0 -
Only way to tell is to check the month numbers on the P45 and the payslip. If P45 has month month 2 and payslip month 3 then tax will be correct to within a few pence. If P45 and payslip have the same month number then he will have been undertaxed, and if there is a gap between them he will have been overtaxed. Either way it will be corrected when the code is applied on a cumulative basis. If there was some change in the pay interval eg weekly to monthly it is more complicated and would need full details of P45 and pay.
Just a thought the code of 405L is lower than the basic code, does the reduction still apply? If for example it was for some benefit in his old job that he no longer gets then needs to tell tax office to get his code corrected.
Thanks for all the replies.
The P45 is dated 13.05.11 and his first wage is 23.05.11, so hes in effect been paid half a month and some holiday pay from his old job in May and the other half a month in his new job. (Did that make sense?)
His tax code comes from having a company car, he has advised the tax office of the change in vehicle but thanks for mentioning it.Don't wait for your ship to come in, swim out to it.0 -
Sounds like an underpayment may have occured then if he recieved 2 payments in Month 2.0
-
littlemissbossy wrote: »Thanks for all the replies.
The P45 is dated 13.05.11 and his first wage is 23.05.11, so hes in effect been paid half a month and some holiday pay from his old job in May and the other half a month in his new job. (Did that make sense?)
His tax code comes from having a company car, he has advised the tax office of the change in vehicle but thanks for mentioning it.
Proberbly an underpayment but as I said before check the month numbers on the P45 and payslip to be sure.0 -
Also worth mentioning, this often happens when an employee gets 2 payments in 1 period and the fact wk1/mth1 was used wouldnt alter that, it just means the extra will be collected next Month rather than out his first pay packet.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.5K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards