Emergency Tax

janey70

hi wonder if someone can shed some light on why my daughter who has been in the same employment for last few years and paying tax and ni as normal has just been emergency taxed ? she is a bar maid and worked in same place for last 3 years but today got her wages and had been taxed £84 ! out of £200 ? she only received a letter few weeks ago giving her the new tax code she will have for April which is 944L , her boss who has just took over the tenancy of the pub just said dont worry you will get it back but not why its happened ? she has her own place and bills to pay so obviously very distressed over this

Funky_Bold_Ribena

We won't know. Only the employer will.

janey70

well he never gave any reason ?

jobbingmusician

Your daughter should ask her employer for the contact details of the tax office dealing with their payroll. She should then ring them and find out why she has suddenly been taxed at this rate. There are basically three possibilities

1. Your daughter has made some sort of a mistake and recently given the tax office some information which has caused them to change the tax code.

2. The tax office has messed up (and I don't think there's any redress in this case )

3. (Most likely) the employer has messed up. If this is the case, and it can be proved, the employer should reimburse your daughter for any financial penalties (overdraft charges, charges for bounced direct debits etc.) she faces as a result of their mistake.

It is quite likely that when your daughter asks for the contact details of the tax office, the employer will admit to having made a mistake - at that point your daughter should tell them that of course they will be held responsible for any financial penalties she faces as a result of their screwup!!!!

hawkster

What tax code was she on?
what tax code is she on now?

AP007

janey70 wrote: »

hi wonder if someone can shed some light on why my daughter who has been in the same employment for last few years and paying tax and ni as normal has just been emergency taxed ? she is a bar maid and worked in same place for last 3 years but today got her wages and had been taxed £84 ! out of £200 ? she only received a letter few weeks ago giving her the new tax code she will have for April which is 944L , her boss who has just took over the tenancy of the pub just said dont worry you will get it back but not why its happened ? she has her own place and bills to pay so obviously very distressed over this

The new tax code for April has no baring on the pay she is getting now unless the payroll dept have changed her tax code to something else already?

As previously asked here what code was she on and what does it say now on her latest payslip?

janey70

EMERGENCY 810L previous last week and before 810L and ni A ? so confused even more now

chrisbur

janey70 wrote: »

hi wonder if someone can shed some light on why my daughter who has been in the same employment for last few years and paying tax and ni as normal has just been emergency taxed ? she is a bar maid and worked in same place for last 3 years but today got her wages and had been taxed £84 ! out of £200 ? she only received a letter few weeks ago giving her the new tax code she will have for April which is 944L , her boss who has just took over the tenancy of the pub just said dont worry you will get it back but not why its happened ? she has her own place and bills to pay so obviously very distressed over this

First this is not caused by emergency tax; but to see what has caused it you have got to give full details. To start with from this payslip that has the £84 tax and the three payslips before it give the gross pay, tax paid, tax code, and tax basis (usually shows after tax code may be 1 X cumulative non-cumulative or something similar) and then most importantly the gross to date and tax to date and the previous gross and previous tax.

AP007

janey70 wrote: »

EMERGENCY 810L previous last week and before 810L and ni A ? so confused even more now

The emergency tax code is set each year and is a number followed by the letter L. The number is the basic Personal Allowance (£8,105 for the tax 2012-13) divided by 10. The emergency code for 2012-13 is therefore 810L.

they would have only changed it if told to

http://www.hmrc.gov.uk/incometax/tax-codes.htm

dori2o

janey70 wrote: »

EMERGENCY 810L previous last week and before 810L and ni A ? so confused even more now

If she's on the 810L code on a week 1 basis (emergency) and the employer has deducted £84 from £200, then the employer (or their payroll) has made a severe mistake.

810l Week 1 gives the same tax free allowance weekly as the ordinary tax code does, it just doesn't take into account what has happened fropm 6 April 2012 til now. It looks at each weeks salaries on a week by week basis for as long as it is in operation.

a code of 810L gives a tax free allowance of £155 per week.

So she is at most taxable on £45 if she was paid exactly £200.

The tax on £45 would be charged at 20%.

£45 x 20% = £9.

Even if your daughter had been put on the tax code BR, she would only have paid £40 on £200 salary.

The employer has made a serious error. Speak to the employer and ask them to resolve it.

You say the employment has recently been taken over by another tenant (is it bar work?)Assuming she is paid by the tenants and not a brewery or management company, then the old tenant should have supplied a P45. hand this into the new employer, it may jump start things.

janey70

just spoke to her and we are still wondering if this has something to do with new people taking over the business? and she is trying to find rest of wage slips