P800

danjshelton

Hi All,

I've read a lot about the P800 letter, but can't find anything that relates to my circumstances. Most of the information I can find is where people have complicated tax circumstances (e.g. Company Car, Fuel, Pension, Multiple Jobs, etc). In my case I have just had one job for this period (infact the last 5 years) and pay no pension contributions, no company car or anything complicated. The only thing that I have deducted from my wages is PAYE Tax, National Insurance and Student Loan deductions.

Now I agree with the calculations that HMRC have come back with on the P800 form, but I don't get how my employer has miscalculated it. I have always had the same tax code for the year (647L) 2010/11, I am short on my tax by a bit shy of £200.00 which they say they will take out of my 2012/13 tax code, but I still want to know how this has happened and whether I am liable (or my employer?).

PAYE Income: £45075.75
Tax Paid : £ 7764.55
Personal Allowance: £6475.00
Tax Chargable: £ 7960.00

Tax underpaid: £ 195.45

Like I said I agree with there calculations (as does the tax calculator on this webpage) but I don't understand how the difference has happened, if anybody could help me it would be much appreciated.

Cheers

Dan

Mikeyorks

Can't help I'm afraid. You're £480 (tax due) into the 40% band and it may be something around that.

Can only suggest looking back over payslips if you're paid an even sum each month - and see if one month(s) looks out of pattern. Month 12 in particular - as the cumulative effect of your Code should have ironed out any earlier irregularities. Bonus paid and not calculated properly?

HMRC won't be able to help as there's no real rationale. But your payroll may be able to tie it to something if you ask they have a look - in case it's not just you?

danjshelton

Thanks for the quick reply, much appreciated. Yeah I was just into the 40% bracket so that may have something to do with it.

Unfortunately i'm not paid evenly at all! Paid weekly, so 52 payslips to go through and all work is hourly with some weeks being 40 hours (minimum) and some being nearly 100 hours, therefore there definately aren't any patterns!!!

I'm going to goto payroll this week and have a chat, due to a change in address (now changed with HMRC as I thought work did this for me) I've only just got the letter, but it is dated 1st November 2011 so I think someone else would have said (Small company, 10 employees) if they had been issued a P800. However saying that I think that I may be the only person into the 40% bracket.

Cheers

Dan

pjclar02

The only other issue that springs to mind.....if your standard working week is 40 hours and that generates an income of around £45k per year, then in a week where you work 100 hours, your annualised salary would be over £100k.

When your salary goes over £100k you start to lose your personal allowance. Therefore, there may have been some weeks where the payroll did not give you a proportion of your personal allowance as there was an expectation that you would earn over £100k in the year.

Long shot - and I would have thought that as PAYE is calculated cumulatively then if this did happen it would work itself out in the following weeks when your working hours reduced again.

BoGoF

Does your P60 show a week 53 payment indicator on it?

Sometimes, depending on when paydays, you get paid more than 52 weeks in a tax year meaning you receive the benefit of more than the £6475 personal allowance.

Mikeyorks

danjshelton wrote: »

Paid weekly ......,

That does throw a further potential into the mix ....... as the previous post from BoGoF.

Not many have a Tue pay day ...... but if you did have a 53rd week that could skew the figures?

http://www.hmrc.gov.uk/paye/payroll/paydays/week-53.htm#2

...... not quite sure how HMRC would allow for that on a P800. I wonder if they know!

danjshelton

I knew there was something that I forgot to mention, yes there is the week 53 payment indicator and I did receive a payslip with week 53 on it (and indeed 53 payslips!).

I did query this at the time and payroll said it was due to our payrole being within the last week before or on 5th April.

So would this mean that payroll have let me use more allowance than I had (therefore paying less tax then I supposed to), still seem's alot for an extra week's pay to be worth another £195.00 allowance?

Again not heard any others say they we're issued a P800 and we all had the week 53 indiciator, unless it is something to do with week 53 and being just into the 40% bracket?

Dan

BoGoF

Just realised, I think week 53 payment indicators are only shown on the P14 (HMRC's equivalent of the P60). Check your payslips, what week/period does the final 10/11 payslip show?

BoGoF

That's your explanation then, at week 52 you have used all your personal allowance and basic rate band so the 53rd week should have been taxed in full. However your employer is 'allowed' to give you the benefit of a 53rd weeks personal allowance so your take home pay remains constant - the downside is you will be underpaid.

danjshelton

There is a week 53 indicator on the P60 (looking at my last few it's been there for at least the last 4 years.

My last payslip was labelled 53 and was on 05/04/10.

Dan

Mikeyorks

danjshelton wrote: »

still seem's alot for an extra week's pay to be worth another £195.00 allowance?

You're paying an average £150pw in tax - so it doesn't take much of one of your longer hour weeks to hit £195?

The employer should correctly allow an extra week of allowances for Week 53. Which throws up an anomaly with the P800


And - yes - should also impact other employees in the company.