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

chrisbur

As your old earnings are not on the P60 this strongly suggests to me that your P60 tax code shown was applied on a month1 basis and proberbly the same for the P45 old employment figure. This means that the tax code shown may not be the tax code used all the time. With a cumulative code this does not matter as the last code used decides the tax paid but with non-cumulative codes (month 1 ) usually marked with an X, the affect of earlier tax codes is not corrected.
Look back over your old payslips to see if any have different tax codes especially anything like 0T or BR and also if you had earnings of more than average for a month that would have taken some 40% tax, for example perhaps you missed your first months salary cut off date and you were paid two months together the next month. If this happened your 40% tax taken would not be corrected later if on a non-cumulative code.

ClaireB7

Looking back at the last 12 months (across current and previous employer), the tax code has stayed the same and the earnings has been constant for each employer.

chrisbur

ClaireB7 wrote: »

Looking back at the last 12 months (across current and previous employer), the tax code has stayed the same and the earnings has been constant for each employer.

That is strange. Can you give the exact details that appear in items 4 6 7 and 8 on the P45 part 1A, and your gross, tax, taxcode and month number from your each payslip in your new employment?

Edit Forget about this see next post

chrisbur

Having looked at the figures again you say you recieved £11826 in your new job and paid £2255 in tax. Assuming a tax code of 755L month 1 or thereabouts this would mean that you recieved three payments of £3942 and paid about £752 tax on each. That £752 included some tax paid at 40% it would have been about £180. When these earnings are put with the earnings for the first job then over both jobs there would be no 40% tax owing so you would get half of it back, that is 3 times £90 (half of £180) or £270 which when added to the £30 that your tax code increase gives you makes the £300 you are due back.

ClaireB7

Hmm - just checking again now and the P45:

Item 4: 21/12/2012
Item 6: 755L but with an X in the Week 1/Month 1 checkbox
Item 7: blank
Item 8: Total pay in this employment £27102.01, total tax in this employment £4273.80

chrisbur wrote: »

Having looked at the figures again you say you recieved £11826 in your new job and paid £2255 in tax. Assuming a tax code of 755L month 1 or thereabouts this would mean that you recieved three payments of £3942 and paid about £752 tax on each.

To be precise; 1st month was £3826 (£705 tax) and the other 2 were £4000 (£775)

chrisbur wrote: »

That £752 included some tax paid at 40% it would have been about £180. When these earnings are put with the earnings for the first job then over both jobs there would be no 40% tax owing so you would get half of it back, that is 3 times £90 (half of £180) or £270 which when added to the £30 that your tax code increase gives you makes the £300 you are due back.

So they do owe me that much

Now all I have to do is get it ... and hurry them along about removing the same "bank interest" deduction AND non-existant medical insurance from 2013/2014's code.

Also, do I need to tell my current employer to 'remove' the Week 1/Month 1 bit ?

jem16

ClaireB7 wrote: »

Also, do I need to tell my current employer to 'remove' the Week 1/Month 1 bit ?

It would normally be HMRC that would have to instruct the employer, not you.

However with the new tax year, all Mth1 codes should automatically change to normal cumulative codes.

Dazed_and_confused

ClaireB7 wrote: »

Hmm - just checking again now and the P45:

Item 4: 21/12/2012
Item 6: 755L but with an X in the Week 1/Month 1 checkbox
Item 7: blank
Item 8: Total pay in this employment £27102.01, total tax in this employment £4273.80



To be precise; 1st month was £3826 (£705 tax) and the other 2 were £4000 (£775)



So they do owe me that much

Now all I have to do is get it ... and hurry them along about removing the same "bank interest" deduction AND non-existant medical insurance from 2013/2014's code.

Also, do I need to tell my current employer to 'remove' the Week 1/Month 1 bit ?

One thing you need to remember is that any repayment will not be based on the tax code of 785L mentioned in your original post. Tax codes are at best an estimate and in your case it looks as though one entry will not apply when your year end assessment is done.

You said the code included an allowance for gift aid however your pay for 2012:13 is low enough that you don't look like you are due any extra tax relief on gift aid payments so this would reduce any refund you are expecting.

Also, as you had benefits from your previous company you will need your P11D certificate from this company before the tax office will be able to calculate any refund - the amount in your code is likely to be an estimate and evidence of the actual figure will be needed to do a final year end calculation.