Income Tax Help

Crane83

Hi Guys,

Wondered if I could have some help. Recently I received 3 different letters through the door from HMRC telling me i was changing to 3 different tax codes (all on the same day) and I had no idea what it meant.

All I know is that I have moved from code 810L to 500L in a month and my income tax has gone up by over £600 in one month! I earn £22k a year, no car etc and I only have one job. I can't understand how this could have been calculated. Any ideas?

With an amount in excess of £600 I am now in danger of missing payments and things because I'm not exactly flush at the best of times. I tried to phone HMRC but they are on "industrial action" and can't take my call. I'm really panicking.

Can anyone help/offer advice? Are they able to do emergency rebates or antyhing?

Thanks in advance,

jem16

Crane83 wrote: »

Hi Guys,

Wondered if I could have some help. Recently I received 3 different letters through the door from HMRC telling me i was changing to 3 different tax codes (all on the same day) and I had no idea what it meant.

All I know is that I have moved from code 810L to 500L in a month and my income tax has gone up by over £600 in one month! I earn £22k a year, no car etc and I only have one job. I can't understand how this could have been calculated. Any ideas?

What did the letters that you received say? Those will have been coding notices and give detail of how each code is worked out.

With an amount in excess of £600 I am now in danger of missing payments and things because I'm not exactly flush at the best of times. I tried to phone HMRC but they are on "industrial action" and can't take my call. I'm really panicking.

I'm surprised that happened as usually they put you on a Mth1 tax code to avoid such a large amount being taken in one go.

Can anyone help/offer advice? Are they able to do emergency rebates or antyhing?

Thanks in advance,

Can you provide figures for last month and this month - eg gross pay, taxable pay to day, tax paid and total taxable pay to date? Also what tax codes were used.

Unfortunately you're not going to get any emergency rebate even if you are entitled to it.

Crane83

I will check these details and let you know later when I am home. But my payslip details are:

February: Code 810L / 0

Payments:
Salary £1833.33
Pension EE -£91.67
Commission £600
Total: £2341.66

Deductions:
Tax: £333.20
NI-A £204.92
Pension: 0.00
Student Loans: £92.00
Advance: £130
Total: £760.12

Net Pay: £1581.84

March: Code 500L / 0

Payments:
Salary £1833.33
Pension EE -£91.67
Commission £400
Total: £2141.66

Deductions:
Tax: £913.20
NI-A £180.92
Pension: 0.00
Student Loans: £74.00
Total: £1168.12

Net Pay: £973.54

Year to date:

Tax paid: £3221.60
NI-A: £1553.12
Taxable Pay YTD: £21,117.31
Niable: £19,282.62
Employers NI YTD: £1799.91
Employers Pension: £1455.41

Thank you for your prompt reply

jem16

Crane83 wrote: »

I will check these details and let you know later when I am home.

The info on the P2 Coding Notices is going to be important.

But my payslip details are:

February: Code 810L / 0

Payments:
Salary £1833.33
Pension EE -£91.67
Commission £600
Total: £2341.66

Deductions:
Tax: £333.20
NI-A £204.92
Pension: 0.00
Student Loans: £92.00
Advance: £130
Total: £760.12

Net Pay: £1581.84

What was the year to date for February?

CLAPTON

your year to date tax look correct if your tax code is 500L

however why is your code 500L?

Crane83

jem16 wrote: »

The info on the P2 Coding Notices is going to be important.




What was the year to date for February?

Ok here goes, bear with me:

In February - YTD figures on my payslip were:
Tax Paid YTD: £2308.40
NI-A: £1372.20
Taxable Pay YTD: £18975.65
Niable: £17140.96
Employers NI YTD: £1590.47
Employers Pension: £1308.74

I've got the PAYE Coding Notices I received - there are 5 of them!

For the year 2012-13:

Your new tax code for year 6 April 2012 to 5 April 2013 is 500L, which replaces 810L (this is for my full time job)

and

Your new tax code for year 6 April 2012 to 5 April 2013 is 310T which replaces BR (this is for a 1 week job I did in July last year)

For 2013-14:

Your new tax code for year 6 April 2013 to 5 April 2014 is 389L, which replaces 944L (this is for my full time job)

and

Your new tax code for year 6 April 2012 to 5 April 2013 is 552T, which replaces BR (this is for the company i did above 1 week job in July last year for)

and finally

Your new tax code for year 6 April 2012 to 5 April 2013 is 2T, which replaces BR (this is for a company i had a part time job with whilst looking for work a couple of years ago)

I'm completely bamboozled!

Dazed_and_confused

It looks like tax office think you are still employed at both the other jobs you refer to but your last post suggests you no longer have these jobs although you also refer to your "full time" job as though you have a "part time" job as well.

If you stopped working for the other companies did you make sure you got p45s from each employer? These could be helpful in sorting things out.

Do your coding notices for your full time job simply show your allowance less allowances to another job/pension or are there other entries?

Crane83

Dazed_and_confused wrote: »

It looks like tax office think you are still employed at both the other jobs you refer to but your last post suggests you no longer have these jobs although you also refer to your "full time" job as though you have a "part time" job as well.

If you stopped working for the other companies did you make sure you got p45s from each employer? These could be helpful in sorting things out.

Do your coding notices for your full time job simply show your allowance less allowances to another job/pension or are there other entries?

Thanks for your message.

No - I have only one job (listed as my full time one)
Neither company of the two part time/temp jobs I work with anymore - One from 18 months ago and the other from last July.

I'm not sure I do have P45's from them actually - but I thought I was getting taxed normally until now

Crane83

Dazed_and_confused wrote: »

It looks like tax office think you are still employed at both the other jobs you refer to but your last post suggests you no longer have these jobs although you also refer to your "full time" job as though you have a "part time" job as well.

If you stopped working for the other companies did you make sure you got p45s from each employer? These could be helpful in sorting things out.

Do your coding notices for your full time job simply show your allowance less allowances to another job/pension or are there other entries?

Thanks for your message.

No - I have only one job (listed as my full time one)
Neither company of the two part time/temp jobs I work with anymore - One from 18 months ago and the other from last July.

I'm not sure I do have P45's from them actually - but I thought I was getting taxed normally until now

jem16

Crane83 wrote: »

I've got the PAYE Coding Notices I received - there are 5 of them!

For the year 2012-13:

Your new tax code for year 6 April 2012 to 5 April 2013 is 500L, which replaces 810L (this is for my full time job)

and

Your new tax code for year 6 April 2012 to 5 April 2013 is 310T which replaces BR (this is for a 1 week job I did in July last year)

For 2013-14:

Basically your tax code is being split between 2 jobs.

Your new tax code for year 6 April 2013 to 5 April 2014 is 389L, which replaces 944L (this is for my full time job)

and

Your new tax code for year 6 April 2012 to 5 April 2013 is 552T, which replaces BR (this is for the company i did above 1 week job in July last year for)

and finally

Your new tax code for year 6 April 2012 to 5 April 2013 is 2T, which replaces BR (this is for a company i had a part time job with whilst looking for work a couple of years ago)

I'm completely bamboozled!

With this one it's being split amongst 3 jobs. (assuming you mixed up the dates on the 2nd 2 codes.)

Crane83 wrote: »

Thanks for your message.

No - I have only one job (listed as my full time one)
Neither company of the two part time/temp jobs I work with anymore - One from 18 months ago and the other from last July.

I'm not sure I do have P45's from them actually - but I thought I was getting taxed normally until now

You have been as far as one job is concerned but they have caught up with the extra jobs and think you are still working with them. You really should have phoned HMRC when you received the tax codes.

How much did you earn last July as that will count as your taxable income for this tax year?

You should also have received P45s if you have now left them.

Redredwine

Gem16 is correct, I'm afraid it will be too late to rectify the overpayment as the tax year ends on April 5th. Ring tomorrow and explain that you have only one job as it does appear that your records show several sources. Tell HMRC to reissue the 13/14 code to reflect that your allowances are against your only employment. You will have to wait for your P60 to reclaim the tax for 12/13. Send a strongly worded letter with the P60 as the code drop should have been on a month 1 basis and it is their error (human or computer). Check all your codes in future as it is HMRC attitude that the onus is on you to make sure everything is correct