Owed over £1000 in tax by employer

Words

My husband works for a very large company. He has been working for them now for about nine months, and is still on "0T" tax code, which means that, out of his £500 monthly wages, he pays about £100 of it in tax. He has spoken to the tax office, who agree that he should be repaid the extra that he has paid by his work, and he has been asking now for three months. Every time payroll say it will definitely be in his next pay packet, and every time it isn't. The actual tax office say their hands are tied till April, at which point they can refund him and take it form the company.

This is now a huge part of our income, and an absolute non amount to the company. They owe him over a thousand pounds.

Can we do anything at all?

jem16

Why is he on a 0T tax code? Did he hand in a P45 or complete a P46 when he started?

Words

He thinks so, but can't remember. He was taken on as a temp employee, then turned permanent after a few months. He has been asking for this to be sorted out since he went permanent. He is now working towards a promotion, but could really do with this money asap - it is a huge amount of money for us.

It is a very large company - a supermarket - so you would think they would be on top of this kind of thing.

jem16

Words wrote: »

He thinks so, but can't remember.

Perhaps he should find out and complete another P46 if necessary.

Apart from saying he should be repiad, what else did HMRC say about his tax code and why he was on 0T?

Words

HMRC said it was a mistake on the part of the employer, and that they would resend a letter to them. They told him that he would get the money back as a lump sum in his wage. When that didn't happen, payroll kept saying it would be done but never was, so he rang HMRC back and they said they can't do anything until April as the money is still with the employer.

Savvy_Sue

If HMRC send out a new tax code to the employer, they usually send a copy to the employee as well, don't they?

So has he had a new tax code sent to him? If not, why can't HMRC send him one, is it because your DH has not submitted either a P45 or a P46? The employer should be able to tell him this, and if he didn't, then he could do a P45 now.

Pennywise

Words wrote: »

he rang HMRC back and they said they can't do anything until April as the money is still with the employer.

No the money isn't with the employer, the employer will have paid it over to HMRC along with all the tax/NIC deduction from all the other employees. Once the employer makes the tax refund to your OH, they'll deduct it from the amount they'll be paying to HMRC that month.

Has HMRC issued a correcting tax code? As said above, if they have, then your OH will have also received a copy of the same "notice of coding". If he hasn't received one, then HMRC havn't issued one.

The employer can't change the tax code until HMRC issue a coding notice telling them to do so.

You need to get back in touch with HMRC and ask them specifically to tell you what tax code they have issued the employer to use (if any) and when they issued it. I suspect you'll find that they havn't done it. You then need to instruct them to issue a correcting tax code notice.

If a coding notice has been issued, then you need to ask them to re-issue it to the employer as it's possible it's got lost along the way. In your discussions with the employer, did they acknowledge that they had received a correcting tax coding notice?

sarahk100574

Hi Words - just to clarify really but is this actually his only/main job now...? did he have another job at the time of starting with the supermarket?
If so that is why he is on this code even if it is now his only job... worth checking i thought.
if not - get him to complete a P46 ticking box a or b as appropriate. If you get it done quickly the payroll could still get a code in time for year end and the refund will come back through his pay. (if not done in time it can take ages via HMRC so try to avoid if possible!):beer: