p8000 advice - income incorrect?

yadsmood

I received a P800 this week that said I am entitled to a £1500 tax refund - it came with a cheque attached.

My total income for the 11-12 tax year was just shy of £24k, and my P60 has all of this information on it, but I am concerned why the P800 I received does not take in to consideration the ~18,000 I received from my previous employer.

The calculations only uses my income for the last 3 months of the 11/12 tax year; which was £6000, and so because that's under the allowance, and I paid tax on it, I am basically due a full refund on this amount. My monthly salary is correct (i.e. it has tax deducted)


I switched employers on the 1st January and as far as I can tell it was processed correctly - and my P60 accounts for everything.

Seems strange they presumably had this information but haven't accounted for it.

Using the tax refund calculator it is estimated I am owed £700 - not £1500; so I won't be cashing anything until I confirm!

I shall be phoning HMRC to see what they say but wondered if you had any advice?

Thank you

jimmo

You don’t give anywhere near the amount of detail needed to check the HMRC calculation or yours but, if I were you, I would bank the HMRC cheque, put the money into the best possible instant access savings account and send a letter to HMRC telling them where you think they have gone wrong.

Let them take as much time as they like to sort it out knowing you can pay them back on demand.

CLAPTON

maybe post up the full figures including the tax codes (i.e. the P45 figures for the first employment and the P60 for the second.

yadsmood

Thanks for your replies. The P60 has £17,600 from previous employment, and £3411 tax on that.

£6000 on current employment, and £1500 tax on that.

Total income: £23600
Total tax: £4941

The P45 matches the previous incomes/tax totals. I've done some rounding.

The P800 says my "PAYE Income" for the year 2011-2012 is £6000, and the refund due matches the all the tax paid in my current employment. It makes no mention of the previous 18k - suggesting that in 2011-12 I only earned £6000, which of course is incorrect.

I'm reluctant to cash it as it looks so obviously incorrect? Or do they accept ignorance as an excuse in such matters!

CLAPTON

you haven't said what your tax codes were on each emplyment

as I see it

your total earning were 23600
tax free allowance 7475
so you should pay 20% of 16,125 i.e. 3,225
you actually paid 4,941

so you are due a refund of £1,706


questions
what were the taxcodes on the incomes
do you pay any pension contributions
when you say 'tax' do you mean 'tax ' or do you mean deductions (i.e. tax and NI)?

yadsmood

747L for both employments.
no pension

and yes by tax I mean deductions, sorry.

My main point is why the P800 only has calculations for £6000; I would assume it would show my entire income for the year.

twig1_2

I think what previous poster is getting at is the amount you give for deductions just the tax payable figure or does it include your ni contributions as if it is both they might be saying your refund is higher than it should be.

yadsmood wrote: »

747L for both employments.
no pension

and yes by tax I mean deductions, sorry.

My main point is why the P800 only has calculations for £6000; I would assume it would show my entire income for the year.

ceeforcat

Seems to me that either the second employer did not receive a form P45 from the op or, if they did, they both failed to operate it (hence BR and 20% tax) and send it to HMRC. Additionally, HMRC has no records of the first job, or has not tied them up, and so - where is the P45 for the firast job?

Can the op confirm that tax code 747L is actually shown on the P60 as I cannot understand why 20% tax has been deducted if that is the case?

yadsmood

747L is on the p60 as "Final Tax Code".

It does seem like the P45 wasn't processed; but the figures are on the P60 to suggest they were. I can't see why HMRC hasn't acted on it.

I will give them a call; thanks for the input, but it just doesn't seem 100% right, unfortunately!

ceeforcat

Good Luck - don't want to confuse you further but the tax on the first job on code 747L is also a country mile out! I can only suggest that you were on BR on that for the first eight months followed by 747L on an emergency basis for the last month. Check your P45 from your first job again - does the week1/month 1 box have an 'X' in it?

yadsmood

on the P45 it says:

Tax Code at leaving date : 747L

and there is no X in the Week 1/Month 1 box.