PAYE and NI advice please!

jem16

Rocky99 wrote: »

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

Ah right. You gave us the impression it was included in his salary which didn't make sense.

However still confused as to why the 810L tax code in March when it should be April.

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.

The 810L tax code is the normal tax code for this tax year. However the 368L tax code is including a deduction for something. We don't know what but his P2 Coding Notice should have explained this. Did he get one and if so what did it say? If he didn't get one he needs to contact HMRC and ask why. It could be for a taxable benefit like his company car or private health benefits. The P11D (which lists taxable benefits) from employers usually goes in around this time so that could be the reason for 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?

No that makes no difference to a tax code.

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

His normal salary is below the higher rate tax band but as he has a deduction for something ( quite probably taxable benefits), then he is paying some higher rate tax.

Does he contribute to a pension scheme?

The company deduction is for the car.

Do you know the taxable value of the car?

If we owe tax will this be notified to us in apr, any ideas how much, worried now!

It would be notified to you but it could be around July rather than April.

Basically from April till June he would have been paying £559.89pm tax if on the same figures you have quoted us. He should have been paying £694.36 as he is now paying so about £134.47pm. If that was for 3 months he would owe £403.41 which is why they have gone for the Wk1/Mth1 code so that it wasn't all taken at one.

Next year they will probably reduce his tax code a bit more so that he pays back the underpaid tax over 12 months.

jem16

Rocky99 wrote: »

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

Yes the car and any other taxable benefits such as private health insurance.

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.

Presumably this is for tax year 2013/14?

For this tax year it would be £8105 minus £4625 which gives £3480 and a tax code of 348L. So assuming the car benefit was slightly lower then the 368L tax code sounds about right.

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.

Seems correct to me. Your husband's tax code is being lowered to take into account the company car which is classed as a taxable benefit so extra tax is due on it. This is how it works.

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

Yes your husband will have underpaid tax this year.

However this could be reduced by payments into a pension scheme. Does your husband have a pension?

xylophone

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

Some sort of lease/salary sacrifice scheme?

Does your husband contribute to a pension scheme?

Rocky99

Thank you for your help and advice, it just seems like such a lot of money being deducted. Think about it he did mention about a private health insurance which I'm guessing is being deducted along with the car? If we canceled the insurance would that help at all?
Also I've just seen on the website about married couple allowance, we've been married 6 yrs and don't think we get it? I'm guessing that's also got to help?
Again thank you for your help, really disappointed as he was under the impression a rebate may be on the cards but at least we won't get our hopes up now! It's nice to talk to people who understand it!!

Rocky99

Sorry yes he contributes to pension scheme and with regards to the car I really don't know. All I do know is he gets the car and a fuel card and they fund any work which needs completing on it

jem16

Rocky99 wrote: »

Thank you for your help and advice, it just seems like such a lot of money being deducted. Think about it he did mention about a private health insurance which I'm guessing is being deducted along with the car? If we canceled the insurance would that help at all?

His tax code details for 2013/14 make no mention of private health insurance.

Also I've just seen on the website about married couple allowance, we've been married 6 yrs and don't think we get it? I'm guessing that's also got to help?

You don't get it unless one of you was born before 1935.

jem16

Rocky99 wrote: »

Sorry yes he contributes to pension scheme

What pension scheme does he contribute to? Is it his company pension scheme and if so does his contributions come out of his gross pay or net pay?

xylophone

I am assuming that when your husband was self employed he had an accountant? If so, it might be worth while contacting him for a discussion about your husband's tax affairs?

Rocky99

He pays into the company pension scheme not sure at which point it was deducted sorry.
Ha ha thanks for correction on married allowance definately not our dates of birth!
We do have an accountant who looked at his payslip said my husband needed to ring payroll then didnt say or suggest anymore about it. He said his tax code around nov was wrong and he was the one who said about rebate hence why I'm asking. We are not entirely happy with his service

jem16

Rocky99 wrote: »

He pays into the company pension scheme not sure at which point it was deducted sorry.

It's important to know as he may be missing out on some higher rate tax relief if it's paid from net salary. Do you know what kind of pension scheme it is - ie final salary, money purchase?

We do have an accountant who looked at his payslip said my husband needed to ring payroll then didnt say or suggest anymore about it. He said his tax code around nov was wrong and he was the one who said about rebate hence why I'm asking. We are not entirely happy with his service

I wouldn't say it was wrong as it's likely to be because of the company car. If it was wrong and he was meant to have the normal tax code, then I can see why the accountant talked about a rebate. Did you tell the acccountant about having a company car?

Unless you have the P2 coding notice for the 368L tax code and it mentions the company car, I would get your husband to phone up HMRC and check why the tax code is 368L. He can also ask what the underpayment is likely to be if the code is correct.