Tax code error

Cat24

Hi,

I have a tax code problem from 2009-2010 that I have only just realised and I was wondering if someone could explain the consequences and if I should take any action.

After being on incapacity benefit for a couple of years I entered full time employment in August 2009 and worked there until November 2010.

Throughout this employment I was given a 647L tax code and taxed accordingly. I have just found a PAYE coding notice saying my tax code for April 09 to April 10 should be 231L.

Does this have an effect on the tax I have paid, either under or overpayment?

Many thanks in advance
Cat

molerat

If the coding notice is correct and the employer was coding you incorrectly and you were paying tax at basic rate you have underpaid £832. The notice should state why the code has been reduced from 647L, is it correct, is it assuming taxable benefits for the whole year at £80 pw ?

dori2o

Cat24 wrote: »

Hi,

I have a tax code problem from 2009-2010 that I have only just realised and I was wondering if someone could explain the consequences and if I should take any action.

After being on incapacity benefit for a couple of years I entered full time employment in August 2009 and worked there until November 2010.

Throughout this employment I was given a 647L tax code and taxed accordingly. I have just found a PAYE coding notice saying my tax code for April 09 to April 10 should be 231L.

Does this have an effect on the tax I have paid, either under or overpayment?

Many thanks in advance
Cat

Post up the information for that year from your P60's etc.

will need

Total pay from employment
Total of any benefit in kind provided by your employer
Total tax paid
Total taxable benefit received.
Total of any other taxable income and any tax paid not included above.

From this information someone on here will work out for you if you have over or underpaid.

It may be that your employer operated the 647L code on a week1/month 1 basis, meaning you would only have had the benefit of your tax free allowance for the period of time you were in work. and not for the time when you were receiving IB. If this is the case you should be in the clear, but it's best to post up the figures.

Cat24

Thanks for the replies

Now I'm a bit worried. Just checked my p45 and the box for week 1/Month 1 has not been crossed!

These are the figures:
Total pay from employment - £10,634.10
Total of any benefit in kind provided by your employer - 0
Total tax paid - £1097.40
Total taxable benefit received – I’m not 100% sure on this one, but on my coding notice it has given me an estimated figure of £4165
Total of any other taxable income and any tax paid not included above - 0


Just to complicate matters (sorry), I dug out information about a previous job which I had whilst in between IB claims. I started in Oct 2008 and finished in Jan 2009. The tax code I was given was 211L and the week 1/month 1 box has been crossed. The figures for that period are as follows:



Total pay from employment - £3514.33
Total of any benefit in kind provided by your employer - 0
Total tax paid - £531.20
Total taxable benefit received – My coding notice it has given me an estimated figure of £3919
Total of any other taxable income and any tax paid not included above - 0


Thanks for your help
Cat

molerat

09/10
On the face of it you have overpaid tax on the employment but the overpayment roughly equates to tax due on 16 weeks at £80 so there may have been a correction done. More info on exact dates and amounts of IB are needed and if they include the first 26? weeks of the claim.

08/09
Looks like a slight underpayment of tax (£30) but that may be the way the pay amounts worked out.