Two Tax Codes | Help Needed

ratz

Hi

Please advise. Thankyou

dancingfairy

It sounds to me like HMRC think you have 2 jobs and have allocated you 7475 tax allowance in 1 and 1125 in the other (ie they have split your tax allowance between the 2 jobs). Is this correct - do you have 2 jobs at the same time/was there an overlap at all? Do they both relate to the same tax year?
If you have only 1 job then you should be able to get your tax code corrected and then that tax should sort itself out and work it's way back to you.
df

ratz

Both the jobs are in same tax year, however not at the same time or overlapping. 8 months to Job 1 and 4 to the second job in succession.

Are you saying, my personal allowance for the year is capped to 8105?

CLAPTON

ratz wrote: »

Both the jobs are in same tax year, however not at the same time or overlapping. 8 months to Job 1 and 4 to the second job in succession.

Are you saying, my personal allowance for the year is capped to 8105?

in the tax year 2011-12 the normal standard tax code was 747L correspeonding to an allowance of 7475 per annum.

so it looks like you have paid too much tax as your final code was only 112T

if you would like to post up the full figures we could check them for you

presumably this tax year you have a 810L code.

dancingfairy

Work out how much you earnt in total in the tax year and how much tax you paid in total as a starting point.
Did either company give you any extra benefits etc?
Assuming they were both standard then anything over the tax threshold (7475) would have been taxed at the basic rate (unless you earnt enough to get into the next tax bracket).
If it is wrong you will need to write to HMRC and wait, and wait and wait until they process a refund for you. As it relates to a previous tax year then you will probably get a cheque as you can't get previous overpayments back in through your wages. Do you have P60's/P45s at all for the jobs?
df

ratz

Thankyou df and clapton for pointers.

Yes, I have both my P45 and P60. Again, back to a silly question coz this is my first return. There were no extra benefits from the companies.

This tax return(earnings for the period April 2011 to March 2012) will need to be filed in tax year, 2011-12 and the tax threshold should be 747(5) when I calculate and not 810(5) (current year tax threshold). Is that a correct assumption to start my calculation?

CLAPTON

ratz wrote: »

Thankyou df and clapton for pointers.

Yes, I have both my P45 and P60. Again, back to a silly question coz this is my first return. There were no extra benefits from the companies.

This tax return(earnings for the period April 2011 to March 2012) will need to be filed in tax year, 2011-12 and the tax threshold should be 747(5) when I calculate and not 810(5) (current year tax threshold). Is that a correct assumption to start my calculation?

why are you filing a tax return?

were these jobs self employed and not PAYE?


if you post the figures we will show you how to claculate what tax should have been paid.

ratz

@clapton: I will PM you what I calculated.

ratz

Thanks for all the help

chrisbur

ratz wrote: »

Hi Clapton

This is what I have calculated so far:

Tax Code Allowance Earnings Tax
P45 747L 7475 42503.06 10339.73
P60 112T 1125 17362.7 4037.04
Total 8600 59865.76 14376.77

Total Gross Earnings 59865.76
minus Total Rebate 7475
Total Taxable 52390.76

Tax Calculation
0-35000 @ 20% 35000 7000
35001-150000 @40% 17390.76 6956.30
Total 52390.76 13956.30

NI Calculation (weekly)
Weekly Gross 1151.26


Weekly Gross Rule Weekly Base Amount
0-139 @ 0% 139.00 0.00
139-817 @ 12% 678.00 81.36
>817 @ 2% 334.26 6.69
Total NI (Weekly) 88.05
Total NI (Annual) 4578.36


Total Tax Liability 13956.30
Total NI Liability 4578.36
Total Deductions 18534.66

Paid 14376.77
Liability 18534.66
Looks like I have to pay more tax instead of getting a refund. Could you please validate.

Many Thanks

It seems to me that you are comparing tax paid showing on your P45 and P60 with the total of tax due plus NI due on your total income. Assuming all your earnings are PAYE which I assume is the case as they are appearing on P45 and P60 you can forget the NI all you need to do is compare tax paid with tax owed. This gives from your figures tax paid 14376.77 and tax due 13956.30 a 420.47 overpayment.
Or am I missing something?

CLAPTON

chrisbur wrote: »

It seems to me that you are comparing tax paid showing on your P45 and P60 with the total of tax due plus NI due on your total income. Assuming all your earnings are PAYE which I assume is the case as they are appearing on P45 and P60 you can forget the NI all you need to do is compare tax paid with tax owed. This gives from your figures tax paid 14376.77 and tax due 13956.30 a 420.47 overpayment.
Or am I missing something?

this seems to be correct

so I will remove my post above as I was comparing tax due with tax&NI actually paid.