Would I have overpaid tax if my tax code changes mid year ?

ClaireB7

Hi all,

As above really.

Got a letter a few weeks ago from HMRC saying my tax code for 12/13 should have been 785L when it was actually 755L. By my reckoning (using my P45 and P60 - already !!! and the listento taxman site) this means I overpaid tax by more than £300 [ I was comparing the total tax deducted figures on the P45 + 60 with the 'tax due' figure on the taxman site ].

Do I need to fill in a tax return to get this back or is it small enough to be paid back in the next tax year ?

Regards,

Adam Brunt (ClaireB7's better half)

Funky_Bold_Ribena

You should send your P60 in and ask for a rebate.

dancingfairy

It depends on if the taxman has written to you. Given it is so late in the year I would expect that you will have to write to the taxman and explain the situation and set out what you believe you are owed. You shouldn't need to fill in a tax return, a simple letter should suffice (or you may find a simple form you can fill in and send back on their website) but I doubt you will need a full blown tax return.
It won't come back to you in your pay (as it goes over different tax years) so I would write them a letter.
df

claire16c

There is a form for reclaiming tax on the Hmrc website. Just full that in & attach a letter. I've done that a few times and had a cheque sent to me within a couple of months.

Dazed_and_confused

ClaireB7 wrote: »

Hi all,

As above really.

Got a letter a few weeks ago from HMRC saying my tax code for 12/13 should have been 785L when it was actually 755L. By my reckoning (using my P45 and P60 - already !!! and the listento taxman site) this means I overpaid tax by more than £300 [ I was comparing the total tax deducted figures on the P45 + 60 with the 'tax due' figure on the taxman site ].

Do I need to fill in a tax return to get this back or is it small enough to be paid back in the next tax year ?

Regards,

Adam Brunt (ClaireB7's better half)

Are you sure the £300 is correct? A change in code from 755L to 785L would normally result in tax reduction of £60 (extra allowances £300 x 20%)
Also, if you got the code "a few weeks ago" why didn't the employer get a copy and use it?
You mention P45 so I guess she has had two jobs this (tax) year. If you post the details - pay and tax for each employment - it should be easy to check. Would help to know how code 785L is made up as well from the letter you refer to

ClaireB7

The P45 is simply just me changing job in December.

The change in code is a classic; about a month ago I got the usual letter stating what the tax code for the next year (13/14) would be. As it has done for the last 2/3 years, the calculation has assumed that I earned £200 in bank interest the previous financial year. Every year up until now I have written explaining this is not correct (complete with statement from the bank showing it's never been more than £1) but the HMRC have done nothing. This time my OH writes instead and this time we get a reply stating they have corrected the code for 12/13 accordingly [ nothing yet about a revision in the code for 13/14 ]

The amount owed also confuses me as well. 755L to 785L I thought would just be 20% of £300 but ... if I go to the listen to taxman site and put the total income (P60 + P45) as my annual salary, with a tax code of 755L for 12/13 then the red/orange annual tax due figure is £300 more than the my actual total tax paid according to the P45 and P60

jem16

ClaireB7 wrote: »

put the total income (P60 + P45) as my annual salary, with a tax code of 755L for 12/13 then the red/orange annual tax due figure is £300 more than the my actual total tax paid according to the P45 and P60

If you have handed in your P45 when you changed jobs, then your P60 may possibly include the details from the previous employment. If this is the case your P60 is the only figure to take and not both.

ClaireB7

The figure on the P60 is definitely just the details from the current employment.

Dazed_and_confused wrote: »

If you post the details - pay and tax for each employment - it should be easy to check. Would help to know how code 785L is made up as well from the letter you refer to

P45 says total earnings are £27102, tax paid £4275. P60 says total earnings are £11826, tax paid £2255.

785L for 2012/2013 is made up of; £8105 personal allowance + £55 Gift Aid payments -£239 medical insurance (with previous employer) and -£62 'underpayment restriction'

Speaking of the medical insurance, I presume if my current employer doesn't offer this benefit then I need to make sure that that £239 is not in my tax code for 2013/2014, right ?

jem16

ClaireB7 wrote: »

The amount owed also confuses me as well. 755L to 785L I thought would just be 20% of £300 but ... if I go to the listen to taxman site and put the total income (P60 + P45) as my annual salary, with a tax code of 755L for 12/13 then the red/orange annual tax due figure is £300 more than the my actual total tax paid according to the P45 and P60

So are you saying that you have paid £300 less tax than what listentotaxman says you should?

If so what about pension contributions? Do you pay into a pension and is it taken from gross salary?

ClaireB7

No, unless I am missing something, I am saying I have paid £300 more tax than what listentotaxman says I should have.

Pension contributions (with the previous employer) IIRC were taken from nett but I am now beginning to wonder ...

Evilm

ClaireB7 wrote: »

The amount owed also confuses me as well. 755L to 785L I thought would just be 20% of £300 but ... if I go to the listen to taxman site and put the total income (P60 + P45) as my annual salary, with a tax code of 755L for 12/13 then the red/orange annual tax due figure is £300 more than the my actual total tax paid according to the P45 and P60

One of the two bolded words is wrong I suspect? It shouldn't be able to do that.

And I'm not sure how the calculation is doing that - even if that £300 triggers a higher tax band it wouldn't take the whole lot. Maximum change I can get running through a few salaries is about £30 difference.

To be honest I'd wait a few weeks into April and send in a request for a recalculation on last years tax paid and see what they come back with.