Income Tax... advice needed

cleas001

Hello,

Hoping someone on here will be able to advise on my problem (I think it's relatively simple, but not sure!)

I have been looking at my pay for the year to date and think I may be overpaying tax... looking through it it seems I have no tax free allowance.

Is the tax free allowance worked out month by month or at the end of the year? I am a 24yr old female earning £28k a year my take home pay is £1658.97 per month but if I had the tax free allowance I calculate it to be £1783.53 (which would make a huge diffrence to me). I only pay tax and national insurance.

Could there be any reason why I might not have a tax free allowance?

Thanks for your help!

CLAPTON

from this months payslip

tell us

your taxcode

your pay to date
your tax to date
your NI

which month it is

System

Your payslip should show the tax code that your employer is using.

For this tax year, it sounds like you should be on a tax code of 747L which gives £7475.00 tax free annual allowance (approx. £623 / month)

CLAPTON

Upon reflection it seems you are on a BR code which is usually given to people with two incomes (BR means everything is taxed at 20% and you get no tax free allowance)

if you only have one income you need to phone HMRC and explain the situation

have you recently changed jobs or anything similar?

cleas001

Thanks for the responses so far...

I changed jobs in Feb this year, however as it is a new tax year now could that be the issue?

Yes Clapton, my tax code is down as BR... hopefully this is good news then as I definitely don't have two incomes!
By the looks of it i've had BR since feburary when I changed job. Prior to that I was under 647L?... could this spell a tax rebate?!
If the case is a rebate will I have to wait until the end of the year to recieve this? and will my pay be corrected for the remainder of the year?

Thanks again!

CLAPTON

phone HMRC and explain the situation; they should be able to change the current year's taxcode. This will mean the overpaid tax is automatically refunded via your payroll system

if you had a BR code for March 2011 then you are due a small tax code; HMRC may require a copy of your P45 from you last job and P60

did you give your new job a P45?

cleas001

I am still to reach a resolution on this, I rang HMRC and explained the situation, they advised me to speak to the hr department at work - which I did - who said they had sorted it. However my tax code is still the same (BR), i still believe I am overpaying tax and I am yet to recieve any rebate.
Is it worth chasing this or will it sor itself out at the end of the tax year?

Thanks, all advise appreciaed

chrismac1

This is worth chasing up. In April 2011 or thereabouts, the HR department should have got a notice of coding 747L from HMRC. If HR are going to apply BR code, ask them to produce the evidence that HMRC issued them with a BR code. Either they have the evidence or they do not.

If they don't, then depending on how solid your job is you need to consider what threats you can apply to HR, maybe pressure from your line manager etc. If they had a BR coding from HMRC, then the fault is with HMRC who need to get their fingers out.

CLAPTON

cleas001 wrote: »

I am still to reach a resolution on this, I rang HMRC and explained the situation, they advised me to speak to the hr department at work - which I did - who said they had sorted it. However my tax code is still the same (BR), i still believe I am overpaying tax and I am yet to recieve any rebate.
Is it worth chasing this or will it sor itself out at the end of the tax year?

Thanks, all advise appreciaed

what did HMRC say your code was on their system?

Horseunderwater

cleas001 wrote: »

Thanks for the responses so far...

I changed jobs in Feb this year, however as it is a new tax year now could that be the issue?

Yes Clapton, my tax code is down as BR... hopefully this is good news then as I definitely don't have two incomes!
By the looks of it i've had BR since feburary when I changed job. Prior to that I was under 647L?... could this spell a tax rebate?!
If the case is a rebate will I have to wait until the end of the year to recieve this? and will my pay be corrected for the remainder of the year?

Thanks again!

This is how the system should work: Every tax year you must be given a form P60, which will show all earnings to date. And on the one that you got from your current new employer there should be 2 sets of earnings with the code they both used at that point. If you were given a P45 part 2/3 when you left your old job in Feb and they should have given you it by Law, this should have been given to your current employer who then uses that as authority on what tax code to apply to your earnings for rest of that tax year. However, the code may have been BR even at this point. Or if correct it should have been 647L (£6475 tax free). Do you have your P60 for year ending 5th April 2011? If so have a look at it and see what code they used. If BR then you will be due a refund and need to send it in to tax office to process. Keep a copy of the P60 and clip it to your letter when you send it off. They will only process a refund with the Original P60. All letters are now going to one office in Liverpool now, All been cetralised and it now get sent out to an office to process. You should then get the P60 back. Next thing to do is to ask preferably in same refund letter for a new P2 notice of coding to be sent to your new employer for this current year, the copy you get should be a P6. If you have just one income, then your code should be 747L or £7475 tax free. Your nat insurance free limit is £6812, so on £28K I would expect the monthly wages slip to read approx: £1779.37 assuming no pension deducted from gross earnings. That last figure is net earnings. Your tax should be £342.08 and Nat Ins = £211.00 This sort of tax is simple, it only gets complicated when you add in Benefits like phones/cars/health insurance and so on. But that is taken care of via the P11D filled in at end of year and changes on the following tax year. Not something to worry about now.
I hope that this helps you get somewhere.
And yes I worked for them before they had computers, so I had to know how it all worked.
That is the first point of attack. Once you get the coding notice, that is the time to tackle employer and wage dept(HR personel etc).
Good luck.

Mikeyorks

Horseunderwater wrote: »

....for a new P2 notice of coding to be sent to your new employer for this current year, the copy you get should be a P6.

The other way around? Employee = P2 Employer = P6 (or electronic version)