What to do , 810L W1 taxcode !

mumps

beartsarah wrote: »

I agree Chrisbur, it would give a much clearer indication of the situation if we had the figures.

810L W1 would indicate that the tax code is being applied cumulatively from the point it was first instigated i.e. June 2012.

The fact that it is still stated as his code is not surprising at all, week 1/month 1 indicates no previous earnings in the year to take account of and a mid year start of income. This would apply to every following month in the year as the cumulative calculation would be based on the point when the week1/month 1. Of course it often depends on the software producing the payslip but I'm not surprised at it being there if the year to date figures from the previous employment have never been taken into account.

It may be they have actually corrected his deductions and he has nothing to worry about. Once the new tax year starts in April the W1 basis will disappear anyway.

The figures will give a much clearer picture of what is going on but there really isn't a need to wait for the end of the tax year (although it's only a few days away!). The last wageslip will give YTD figures for the 2nd employment and the basis of calculation can be derived from that straight away which will give a clear indication of if it has been done correctly or not. The P45 will indicate how his previous employment was calculated as well.

Of course I hope his second employment has been calculated cumulatively in some respect because if each month has been treated as his only earnings for the year he won't have had any tax deducted.......

Look forward to seeing the figures so we can help you get it resolved Daredevil.

You have got the Week1 situation completely wrong. I think you have to be careful about the highlighted bit above as you could be causing the OP to worry and a Week1 code won't mean each payment is treated as the first of the year, in fact it won't mean any payment is treated as the first in the year, just means the amount already earned/tax is unknown.

I can see you are new here so don't want to offend you but alot of people come on here because they have money worries and I do think it is important not to cause needless worry.

Chrisbur gives an excellent explanation.

beartsarah

My apologies, being an accountant who has been fully trained in payroll and completing it for the last ten years with all the relevant yearly CPD obviously gives me a misguided view lol.

I doubt I have misunderstood this but perhaps my explanation isn't clear enough for which I apologise, I wouldn't want to make the OP worry I simply want to help them take the right steps to resolve the situation.

So far on this site I've seen 89 separate posts on payroll and tax related issues giving completely wrong and incorrect advice and wouldn't want to join them so will refrain from posting in future.

mumps

beartsarah wrote: »

My apologies, being an accountant who has been fully trained in payroll and completing it for the last ten years with all the relevant yearly CPD obviously gives me a misguided view lol.

I doubt I have misunderstood this but perhaps my explanation isn't clear enough for which I apologise, I wouldn't want to make the OP worry I simply want to help them take the right steps to resolve the situation.

So far on this site I've seen 89 separate posts on payroll and tax related issues giving completely wrong and incorrect advice and wouldn't want to join them so will refrain from posting in future.

Sorry but you have misunderstood.

From the HMRC website

When a code is operated on a week1/month1 basis this means that you use week 1/month 1 of the Tax Tables each weekly or monthly pay day. This basis is non-cumulative, which means you don't add the pay and tax to the previous weeks, or months figures of pay and tax.

And you said

810L W1 would indicate that the tax code is being applied cumulatively from the point it was first instigated i.e. June 2012.




Seems pretty clear doesn't it?

beartsarah

Sorry ignore the previous post, bad day and clicked reply without really thinking about what I had written - if you see my other posts on what I've had to deal with recently you will see by 'bad day' I really mean a bad day lol. However NO excuse whatsoever for getting snappy on a forum.

I'll bow to greater knowledge in this situation mumps. However just for everyone's knowledge;

If you're put on a week 1 or month 1 emergency tax code

You might be put on a ‘week 1’ or ‘month 1’ emergency tax code if you've given your employer a P45 Part 3 showing a previously used week 1 or month 1 emergency code or you ticked Statement B on your P46 - telling your employer that you've had another job or taxable state benefits during the year - or your tax code has been reduced by a large amount.

How a week 1 or month 1 emergency code might affect your wages or pension

The code used in this way will give you the remainder of your tax-free Personal Allowance spread over the rest of the tax year. HMRC assumes that you've already received some tax-free income in the period before you started your job or your tax code changed.
Week 1 or month 1 emergency codes treat each week or month on its own and give you an equal amount of tax-free pay every payday. As they can't take into account changes in your income or tax which may have happened earlier in the year your tax may not be exactly right at the end of the year.

Direct from the HMRC website, we are arguing about calculation here - cumulative vs. daily, weekly and monthly allowance being applied to the earnings in that period equally over the rest of the year. In my experience in a payroll department they will use the software for calculation, the software designs use a cumulative calculation to get the desired effect depending on variances in the salary, this is an unfortunate by product of the software design and it was a bit of a tongue in cheek dig at this.

The end result is much the same - I apologise again for the confusion but it's not actually going to resolve the problem. As I said I agreed with Chrisbur that the simplest solution is having the figures and identifying the under/overpayment that has been made which as usual comes down to all of the figures in the tax year being treated as total earnings over the year to find out what should have been paid vs what has been paid. We seem to have become quite sidetracked (which is mostly my fault lol).

Hopefully the OP can get it resolved to his satisfaction.

mumps

Apology accepted. I use a well known payroll software, it is hmrc accredited and definitely applies Week1/month 1 on a non cumulative basis, if it didn't then if someone only worked occasional hours it could make a big difference.

I had a look at your other posts and from my previous career I would suggest you look to see if the Police in your area have a dedicated domestic abuse/violence unit, you are likely to get a much better response from them. I know that if you go into your local station there is a great temptation to downgrade your complaint and at its worst get rid of you. A specialist unit is much the best option, if not contact your police hq and say you want to make a complaint. Again there should be a specialist unit dealing with complaints. It can be hard to get this taken seriously but if you get to the right people you really can get the help you need. Good luck