Tax paid

sscott5581

I have recently changed jobs. Instead of being paid 4 weekly I am now being paid monthly. Basically I left my last job on 12 November and started new job on 14 November.

I received my first wage from my new employer 28 November final salary from previous employer on 3 Dec.

Last month I received the correct salary from my new employer using tax code 747L. This month I have had £170 more tax deducted than I should have using my previous tax code 752L. Would changing from 4 weekly to monthly have an effect on tax paid.

I have checked with 'listen to taxman' site and the tax paid is correct until this month?

I will be phoning my payroll department tomorrow but just wondered if anyone had any thoughts?

Thanks

BoGoF

Did you give your P45 to your new employer?

Does the 747L code have an X or M1 after it?

sscott5581

Yes my new employer has my P45.

My tax code on this months wage slip is the same as my previous employment which was 752L. The tax code on the first two pay slips was 747L MTH1.

As i said I checked with 'listen to taxman' and the tax paid is correct until this month where I have been over taxed by approx £170.

Thanks

McKneff

What is the difference in the 'gross' in the new employment and the gross in the old employment.

You also have to remember that you have 13 payments with your last employer and on 12 with your new one. (in a full year that is)

sscott5581

McKneff wrote: »

What is the difference in the 'gross' in the new employment and the gross in the old employment.

You also have to remember that you have 13 payments with your last employer and on 12 with your new one. (in a full year that is)

Difference in gross pay is £152.

Thanks

BoGoF

It would appear that your employer has not used your P45 then and put you on emergency tax but as McKneff has said your pay frequency changing will have affected things to

McKneff

Once its sorted, hopefully by next payrun, you will get a sizeable rebate or not pay any tax that month.
Bummer thought to start with.

Good idea to go and see your payroll dept, something is obviously not right.

Let us know how you get on.

sscott5581

Thanks for all your comments, I will let you know how I get on.

chrisbur

Without knowing the actual figures it is impossible to exactly check what is happening here, but the most likely explanation is that you have recieved overlapping payments. You were paid on 28 November and 3 December, your old employer using your tax code and your new employer using the emergency code. This means that one employer is giving you a months tax allowance and the other employer is giving you four weeks tax allowance but for virtually the same time.


If you would like the figures checking properly you need to advise from the P45 the week number the taxable gross and the tax paid, and from your new job's payslip the month number used the taxable gross and the tax paid for each payslip.

Some rough figures that do not come exactly to your differance but are quite close, perhaps I have added something up wrong it is late.
Old job would use week 36 tax allowance which is £5212.38.
New job use emergency for months 8 and 9 which is £1246.50

So up to month 9 you have been given £6458.88 tax allowance but the actual tax allowance for month 9 on your code is £5646.75 so you have been given £812.13 tax allowance over what you are entitled to, due to the overlap, which is £162.43 tax that you owe and was collected in month 10.

sscott5581

chrisbur wrote: »

Without knowing the actual figures it is impossible to exactly check what is happening here, but the most likely explanation is that you have recieved overlapping payments. You were paid on 28 November and 3 December, your old employer using your tax code and your new employer using the emergency code. This means that one employer is giving you a months tax allowance and the other employer is giving you four weeks tax allowance but for virtually the same time.


If you would like the figures checking properly you need to advise from the P45 the week number the taxable gross and the tax paid, and from your new job's payslip the month number used the taxable gross and the tax paid for each payslip.

Some rough figures that do not come exactly to your differance but are quite close, perhaps I have added something up wrong it is late.
Old job would use week 36 tax allowance which is £5212.38.
New job use emergency for months 8 and 9 which is £1246.50

So up to month 9 you have been given £6458.88 tax allowance but the actual tax allowance for month 9 on your code is £5646.75 so you have been given £812.13 tax allowance over what you are entitled to, due to the overlap, which is £162.43 tax that you owe and was collected in month 10.

Spoke to HRMC today and they confirmed what you have said here.