Is this tax calculation correct?

uzuria

Hi All

My OH was made redundant for 3 months last year and we thought he'd overpaid tax. His gross earnings were £8526.98 for the 10/11 year and he also received £576.82 in Jobseekers. He paid £949 tax and £570.79 NI.

I put his taxable income of £9103.08 into a calculator and it said only £525.62 tax and £372.14 NI was payable.

However, we just got a letter saying that from his income details, he actually marginally underpaid tax! Is this correct? Am I missing something in my calculations?

Your help will be really appreciated before we ring up and have to wait forever in a queue trying to get some answers!!

CLAPTON

on an income of 9103 then yes the tax should be about 525; it's not possible to work out the NI as that depends upon the monthly income rather than the yearly total

do you have P60s or P45s ?

did you speak to HMRC or did they write

System

What pay and tax figures are at the top of the calculation and further down is there an underpayment from a previous year which HMRC were collecting in 10/11?

uzuria

Hi!

Thanks for your quick replies.

We did write to HMRC with P60 from the job and P45 from jobseekers.

They wrote back with no calculation. They just said they did a review and there was no tax owed. Stange huh!

They definitely aren't collecting tax from previous years though.

Should we call for a breakdown of the calculation? Is there anything else I should mention?

antrobus

What's OH's tax code?

uzuria

On his P60 for the 10/11 year it says 647L M1

antrobus

uzuria wrote: »

On his P60 for the 10/11 year it says 647L M1

Ah. The M1 or 'Month 1' would (or could) explain why more tax has been deducted than it appears is necessary.

uzuria

antrobus wrote: »

Ah. The M1 or 'Month 1' would (or could) explain why more tax has been deducted than it appears is necessary.

So would that mean he is owed tax? What does the Month 1 mean? Thanks again for your help

antrobus

uzuria wrote: »

So would that mean he is owed tax? What does the Month 1 mean? Thanks again for your help

It means that PAYE was calculated on a non-cumulative basis. Usually M1 codes are emergency codes which are issued because HMRC thinks there's some more taxable income somewhere.

uzuria

Hmmm ok. Thanks. Will give HMRC a ring tomorrow and ask how they came to conclusion that he underpaid when it looks like he is indeed owed something.

Everyone is so helpful on this forum

chrisbur

uzuria wrote: »

Hi!

Thanks for your quick replies.

We did write to HMRC with P60 from the job and P45 from jobseekers.

They wrote back with no calculation. They just said they did a review and there was no tax owed. Stange huh!

They definitely aren't collecting tax from previous years though.

Should we call for a breakdown of the calculation? Is there anything else I should mention?

As he had a P60 for the job he must have been doing this at the tax year end, I assume that the spell on jobseekers for which he had a P45 was before this job, but was there any employment between 6/4/10 and going on jobseekers?