Have I paid too much tax?

newfoundglory · 23 April 2007 at 8:47PM

I started work having left Uni in mid-July 2006. I hadnt worked before this date. I am confused as to whether or not i have paid too much/not enough tax. My first payslip contained the tax code 503L/WK1, all my payslips since then have had tax code 503L/1

Since i havent worked for the whole of the 2006-07 tax year, does this mean i havent got full benefit of my tax-free allowance? Do i need to do a tax return?

isasmurf · 23 April 2007 at 9:00PM

You are being taxed on a non-cumulative basis. This means that when your employer pays you and decides how much tax to deduct, your previous earnings and tax paid are not taken into account. You almost certainly have paid too much tax for 2006-07, as you wouldn't have had your tax free allowance for the period april- july included in your tax calculations.

You will receive a P60 shortly (if you haven't already done so). Use this to claim your overpaid tax back from HMRC.

If your payslip continues to show W1 on the end of your tax code (the tax code should be 522L now we are in 2007/08) then ask your employer for a P46. You should've filled one of these in when you started work. Unless you complete a P46 or hand in a P45, your employer cannot get your correct tax code from HMRC and will tax you on a Wk1 basis.

newfoundglory · 23 April 2007 at 9:52PM

Thanks, thats really useful info. You're right - i didnt fill in a P46 when i started! Cheers.

shelly · 23 April 2007 at 10:10PM

In case you're wondering how to claim back the tax you shouldn't have paid, send your P60 (original-not copy) together with a covering letter to the Tax office stating that you think you have paid too much tax and they will investigate it and send you a cheque for any tax they owe you. Also in the letter ask them to send your P60 back to you.

I only know all this myself as I have queried my tax overpayments last week as I didn't work most of 2006 but when I re-started work on sept of 06 I was paying full whack tax.

If you want the tax offices' address and/or phone number let me know and I'll pass it on to you.