Tax Codes

katies_mum

It will keep me in bottles of wine for a while!! lol
Wouldn`t have had the confidence to speak to them without help from you and jem (would have opted for a letter).. you both explained it all so well I felt quite confident (think it was easier as well because the the person I spoke to was so helpful and pleasant).
Have a great weekend.

katies_mum

Just thought I`d give you an update...I`m sure you can see the big black cloud from wherever you are!
Hubby received payslip this morning he is on tax code BR M1 so nothing has been changed despite out letter from HMRC dated 6th Jan saying his code is 818L...so of course paid even more tax and no refund. Now it all starts again going to ring HMRC to see whats happening...was so looking forward to getting all povrpaid tax back this month. I`ll let you now how it goes, but am supposing its another month we will have to wait.

katies_mum

Just spoken to hubbys new employers and tax code has now been changed but not in time for this pay. In February he will get back tax overpaid whilst employed by them but nothing back from the overpayment whilst at previous employer (said they work on a month 1 week 1 basis!!!)
Have spoken to HMRC again and now we have to wait until he gets his P60 off his new employer and then send it to them with copy of P45 requesting a refund of overpayments for 2012-2013.
Please can anyone tell me if this makes sense as I`m so confused.
(Originally HMRC said all the overpayments woud be made in one go as soon as tax code was changed...now we have to wait until at least April to get the rest back its so frustrating).
Thanks

jem16

katies_mum wrote: »

Just spoken to hubbys new employers and tax code has now been changed but not in time for this pay. In February he will get back tax overpaid whilst employed by them but nothing back from the overpayment whilst at previous employer (said they work on a month 1 week 1 basis!!!)

If they are working on a Mth1/Wk1 basis, there wouldn't be any refund at all, even from this employer as they should only be looking at each month in isolation. So that doesn't make sense.

Can you go back to the letter that you got from HMRC and look at any notes with it. Is there any mention of the tax code being used on a non-cumulative basis?

katies_mum

Hi,
Letter from HMRC just says your tax code for April 2012 to April 2013 is 818L. Nothing about non-cumulative basis (what does this mean please)
I actually spoke to the bloke who deals with hubbys pay and he read to me off their screen that in his next pay he will get approx £500`ish back in overpaid tax whilst he has been working for them..it was all on the screen and would automatically be paid.
I don`t know what mnth1/week1 basis means but at least 2/3 of the over paid tax will hopefully be in the bank next month. Its just so annoying when HMRC tell you one thing and its all different.

jem16

katies_mum wrote: »

Hi,
Letter from HMRC just says your tax code for April 2012 to April 2013 is 818L. Nothing about non-cumulative basis (what does this mean please)

Non-cumulative means that the earnings and tax paid from April 12 to April 13 is not looked at. Only the earnings for that one month is looked at.

I had a PAYE Coding Notice that had a Special Note on the reverse side. It said they would tell my employer to use the new code on a special basis(this means non-cumulative). Does it say anything like this?

I actually spoke to the bloke who deals with hubbys pay and he read to me off their screen that in his next pay he will get approx £500`ish back in overpaid tax whilst he has been working for them..it was all on the screen and would automatically be paid.

If it's used cumulatively that's exactly what would happen.

I don`t know what mnth1/week1 basis means but at least 2/3 of the over paid tax will hopefully be in the bank next month. Its just so annoying when HMRC tell you one thing and its all different.

If the new employer is paying back overpaid tax since he joined, then he's not using a Month1/Week1 basis as that wouldn't pay back any overpayment. It would just mean that his tax would be correct from now on.

katies_mum

Thank you for taking the time to explain it all for me.

Could I ask..maybe a daft question! Why do we have to wait for P60 and send it in with P45 to get the overpayments back from the previous employer..surely HMRC know exactly what he has been paid, what the code was used and what the dates are?

Thank you.

CLAPTON

katies_mum wrote: »

Thank you for taking the time to explain it all for me.

Could I ask..maybe a daft question! Why do we have to wait for P60 and send it in with P45 to get the overpayments back from the previous employer..surely HMRC know exactly what he has been paid, what the code was used and what the dates are?

Thank you.

At the moment (the system changes from April) HMRC do not in general know what people earn until after year end.
So for tax year 2012 -13 HMRC will only know a persons earning when they receive the eqivalent of the person P60 in april/may 2013.
However, the exception to this is that they do receive P45 information when it is produced so they should have a record of your OH's P45.

Personally I would phone again and explain that you have a notice of coding but your employer doesn't have that notice and is using a different code and see whether they can resend and avoid as much background as possible.

katies_mum

Hi CLAPTON,
Thanks for explaibning about P45/P60 - we will have to wait for previous employers overpayments back.
His new employer does now have the correct tax code registered it seems it was received too late from HMRC for the pay run (or whatever its called in January) They have confirmed that 818L is now recorded and this will raise a refund in February pay of overpaid tax since starting with them (October - January).
We will just have to be patient with regards to the rest of it. Do you know when in April a P60 might be issued?
Thanks

jennifernil

The problem seems to be that the P45 he gave to his present employer was issued before the missing money was received from the original jobs 1 and 2, so money has been paid, and taxed, that the current employer has no record of, so cannot refund that tax.

Should jobs 1 and 2 not have issued a second P45? Can one be requested?

If you have/get no other paperwork from them, presumably you would need to send copies of the payslips for the period after the P45 to HMRC so they can process the additional refund. I would expect that they need to see proof that he had this additional amount and that it was incorrectly taxed.

P60 is normally issued pretty soon after the last wage in the tax year has been paid. Often the last payslip doubles as the P60. When sent separate, my OH's could take up to a month to arrive.