Underpaid tax

katp1984

Hi,

I'm hoping one of you helpful people on this board will be able to help me...

Recently, I called HMRC up to update them that I am paying for various subscriptions to professional bodies and insurance which are tax deductible. Subsequently my tax code changed from 747L to 811L (on my payslip).

My pay slip for last month shows that I received a refund for £1216 (PAYE - £1216R). My gross pay was £711 last month (excluding the refund). I was really confused when I saw this:(

My question is - is it possible to work out how much I have underpaid by? Secondly do I inform HMRC? I was going to save the money in an instant access savings account and when they inform me that I have underpaid to pay them the money.

Thirdly will I be liable for a fine? as I don't really think this is my fault as I am a PAYE employee.

Thanks

BoGoF

Can you post the previous months payslip dets - pay to date, tax to date and code number.

katp1984

Thanks for your reply BoGoF

Year to date balances:
Gross Pay: 18448.45
Taxable pay: 17743.73
Tax paid:2330.80
Pension: 704.72

Tax code:811L CUMUL

Hope this is sufficient.

Thanks

BoGoF

I meant the payslip from before your tax code increased, can you give us those details as well.....and can you confirm the month number on each payslip (may show as pay period)

katp1984

Sorry, I misunderstood...

Year to date pay (last month):
Gross Pay: 17736.64
Taxable pay: 17064.97
Tax paid: 3547.58
Pension:671.67

Tax code: 747L NONCU. Tax period 8. The tax period for this month is 9

So it looks like my code has changed from 747L NONCU to 811L CUMUL. I'm not really sure what the NONCU and CUMUL mean.

Thanks for your help

BoGoF

NONCU means non cumulative and CUMUL means cumulative.

There must be a reason why you were on 747L non cumulative prior to 811L cumulative. Can you give a history of your tax codes for periods 1 - 7 please. This may explain why the refund was so large.

CLAPTON

well the good news is that your tax for month 9 is correct as you need not worry about owing the tax man anything

we need to know a bit more about your monthly pay details for the previous months to know why you were on a noncum code and why is lead to such a lerge tax refund

when did you start this job?

BoGoF

CLAPTON wrote: »

well the good news is that your tax for month 9 is correct as you need not worry about owing the tax man anything

That's assuming HMRC haven't done something daft like issue a cumulative code with previous pay and tax info from a previous job

katp1984

Sorry, I still don't really understand about cumulative and non cumulative. I started working at this current job in August - The only other thing I can think about is that I got my P45 and gave it to my current employer last month.

My previous tax codes in the last few months are as follows:

Month 1,2,3,4 - 747L (doesn't say cumulative or non cumulative) This was in my old job.
Month 5,6,7,8 - 747L NONCU - current job
Month 9 - 811L CUMUL - after contacting HMRC re subscriptions and ?giving my new employer my P45.

I think I am just going to save £1200 just in case HMRC contact me asking to repay this a year later.

Thanks

chrisbur

It appears to me that the pay and tax from your P45 have not been included in the calculations for your last payment. This means that all your tax allowance for the first nine months of the year have been set against your earnings for months 5 to 9. Can you give full details of the figures from the P45 that appear in sections 6, 7 and 8 (the last may be blank)?

CLAPTON

tax is based on your earning from April 2011 to april 2012

you need to give us details of your earning from 6th april 2011 to date to work out your tax status