I think I overpaid but HMRC say no!?

diddyb

Hi folks,

I feel as though I overpaid on my tax last year but having just contacted HMRC, they say I didn't. They won't expand on why, though, which is frustrating.

In June 2011, I had my work hours halved and, so, since August '11 I've had two jobs. Initially, my tax codes were correct: my 'first' job on 747L and my 'second' job on BR. But in Nov' 11 I moved to a different position within the company with which I had my 'second' job, and was then earning much more, relatively speaking.

So, my 'second' job had become my first. However, I'd neglected to update my tax codes to reflect this and so was paying BR on my earnings for the now first job and tax at code 747L on the now second job, and have been doing so ever since, despite the fact that I earn more than double on the now first job than I do on the second. Until today, when I've finally talked to HMRC to get it sorted.

I had expected that I might be due some back, though. But HMRC tell me that I paid the right amount for 2011/12. Could that be right?

CLAPTON

you get a tax allowance of 7475 per annum

assuming both jobs pay more than 7475 per annum then it make no difference which one is coded 747L or BR as the tax calculation will be the same (assuming your total is less than the 40% limit)


the calculation is

tax due = (job 1 +job 2 -7475) x 20%

so that is the same as (job 1 -7475) x 20% + (job 2) x 20%
as job 1 x 20% + (job 2 -7475) x 20%


so how much did you earn in each job?

diddyb

Thanks for coming back.

For 2011/12:

Job 1 was £1,100 PCM, dropping to £552, in June '11.

Job 2 was £500 PCM, rising to £1,360 in December '11.

Caz3121

you need to look at the total taxable income and the total tax paid
eg if the above figs are gross, they equate to a total income of £17,160, on which £1,936 tax would be due.....how much total tax did you pay across the 2 jobs

CLAPTON

what do your P60s show?

JimmyTheWig

diddyb wrote: »

For 2011/12:

Job 1 was £1,100 PCM, dropping to £552, in June '11.

Job 2 was £500 PCM, rising to £1,360 in December '11.

Assuming that you get paid (in Job 1) after the 5th of the month (i.e. April 2011's pay was in the 2011/12 tax year) then you received £7,720 from Job 1. So you should have paid tax on £245 from Job 1. You would have paid more than this in total from the first two months, so you should have got a rebate at some point from Job 1.
Then everything earned in Job 2 would have been taxed, which is correct.


You may, actually, find that you pay more tax _this_ tax year than you should have, which you might need to sort out.

diddyb

CLAPTON wrote: »

what do your P60s show?

£325.60 on job one

&

£1601.60 on job two

So a total of £1,927.20, which, allowing for my crudely rounded earnings figures, ought to be about right!?

CLAPTON

diddyb wrote: »

£325.60 on job one

&

£1601.60 on job two

So a total of £1,927.20, which, allowing for my crudely rounded earnings figures, ought to be about right!?

the P60s should should your earnings in the jobs as well as the tax charged; these figures will reveal all.

JimmyTheWig

diddyb wrote: »

£325.60 on job one

&

£1601.60 on job two

So a total of £1,927.20, which, allowing for my crudely rounded earnings figures, ought to be about right!?

From the figures you've given us you've paid too much tax in both cases.
But I've had to make all sorts of assumptions as to when months started and ended, etc.

As Clapton says, we need to know how much you earned in total on both jobs in the tax year.

diddyb

JimmyTheWig wrote: »

From the figures you've given us you've paid too much tax in both cases.
But I've had to make all sorts of assumptions as to when months started and ended, etc.

As Clapton says, we need to know how much you earned in total on both jobs in the tax year.

For original job one (which I've always had but with the reduced hours) it is total for year of £9,108, with £325.60 deducted.

For job two it is total for year of £8,008.79, with £1,601.60 deducted.

So combined earnings of £17,116.79, with combined £1,927.20 deducted.

Is that correct?

molerat

17116 - 7475 = 9641 x 20% = 1928.20