PAYE and NI advice please!

Rocky99

Please please please can someone help us!
My husband went from being self employed to employed a year ago and his tax codes are all over the place and appear as if he's paying too much tax and NI.
We don't know who to ask or who to contact so a bit of advice would be so very appreciated!

The story:-
- he started as employed in dec 11
He does have a company car which he pays an allowance for and there are no outstanding issues with his business.
Jan - 747L wk1/mth1
Feb- as above
Mar-810L cumulative
Apr-as above - rebate recieved here for too much PAYE
May-as above
June-as above
July- 368L wk1/mth1
Aug- as above
Sept- as above
Oct- as above
Nov-as above
Dec- as above
Jan13- as above

Please can someone explain what this means and if we should be due another rebate? His national insurance seems way too high also!

Please help!!

Dazed_and_confused

Forget about payments upto 5-4-2012 as they will have been taken into account when he did his 2011-12 SA tax return.

For this year you would need to post latest payslip info and the breakdown of the 368L code for people to review. NI isn't often wrong.

Rebate in April seems a bit odd, as does 810L code in March, are you sure you've put this down correctly? Is he weekly paid?

xylophone

Has your husband received a Notice of Coding?
http://www.hmrc.gov.uk/incometax/index.htm http://www.hmrc.gov.uk/incometax/understand-p2.htm
http://www.hmrc.gov.uk/ni/intro/basics.htm
http://www.hmrc.gov.uk/working/index.htm

Rocky99

Thank you so much for your replies!

His last slip says

Pay and allowance totals £3474.86
Tax £694.36
NI £ 341.02
Plus company deduction of £66.65

So total deductions £ 1102.03

Tax period 12/13. 10
Tax code 368L
Tax basis wk1/mth1

Net pay £2,373.83

I've checked the codes I've put down and they are correct to the payslips. Thanks for the advice

jem16

Rocky99 wrote: »

The story:-
- he started as employed in dec 11
He does have a company car which he pays an allowance for and there are no outstanding issues with his business.
Jan - 747L wk1/mth1
Feb- as above

747L is the normal tax code for that tax year. although the Wk/Mth 1 means it's the emergency tax code that was being used. However there doesn't appear to be any deduction for the company car in his tax code. Is this dealt with through his salary?

Mar-810L cumulative
Apr-as above - rebate recieved here for too much PAYE

As already said, the 810L in March is higher than the normal 747L tax code so that implies an allowance of £630. What does his coding notice say about this code?

As to the refund that's very strange as April would be a new tax year. I would have expected a rebate to be paid with the tax code change in March as opposed to April.

July- 368L wk1/mth1

Ok so there is now a deduction being applied - could be company car? Again what does the coding notice say?

Please can someone explain what this means and if we should be due another rebate?

On the change from 810L to 368L that would trigger an underpayment and not a rebate. However the Mth1/Wk1 would only look at the month in isolation as applying it cumulatively would have seen a large amount of extra tax being taken in one month.

However it seems that at the end of the tax year your husband will be owing tax.

As to NI, you would need to post figures but it's unlikely to be wrong as NI isn't worked out cumulatively but only on what is paid each week/month.

jem16

Rocky99 wrote: »

Pay and allowance totals £3474.86
Tax £694.36
NI £ 341.02
Plus company deduction of £66.65

So total deductions £ 1102.03

Tax period 12/13. 10
Tax code 368L
Tax basis wk1/mth1

Net pay £2,373.83

Both tax and NI are spot on for that salary and that tax code.

What's the company deduction for?

I've checked the codes I've put down and they are correct to the payslips. Thanks for the advice

Can you give the date of the April payslip that contained the refund? Perhaps post the figures too.

Can you also post the date and figures for the March payslip?

xylophone

The NI looks right.

What is the explanation for the tax code ( see Notice of Coding)

What is the "company deduction"?

Rocky99

The rebate came as a cheque, I could be wrong as to when we received the cheque it was around that time.

What we don't understand is at the beginning of the tax year the first slip was 810L which continued for three months. Then it goes to the 368L in July I don't understand the change.

Also the month the code changed he had earned gross around £15000, is this him crossing a limit into a different tax band?

What are the figures for the different tax levels, is he on the higher tax?

I'm sorry if my terminology is incorrect this is all new to me and quite hard to figure out!

The company deduction is for the car.
If we owe tax will this be notified to us in apr, any ideas how much, worried now!

xylophone

What are the figures for the different tax levels, is he on the higher tax?

See links in post 3.

The company deduction is for the car

Can you explain on what basis the car is supplied?

xylophone

And when the code changed, did he receive a Notice of Coding from HMRC?

Rocky99

I'm sorry but how do you mean with regards to the car?

I've found a letter that we received this month.
It says:
His tax code for next yr is 481L
Personal allowance £9440
Car benefit -£4625
A tax free amount of £4815.

Again we don't know if this is right as being self employed for so long has left us clueless with regards to tax etc.

So I'm guessing a rebate in April is a dream and there's possibility we will get a bill??