Can my employer take extra tax?

chris_h16

Hi
I'm asking this for my dad. He has been getting paid monthly, but his employer has just changed to paying every 4 weeks.
Basically they have taken extra money off everyones pay this month, (£200 in my case). Their explanation is they have had to add March and April wages together to make the final payment to HMRC. It seems they have taken March tax off in March as usual and then again in April wage where they have added the two wages together.
I've uploaded the pay slips and the explanation if someone can manage to make sense of it.


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Savvy_Sue

Can't answer that, but first thing I notice is his tax code, 715L. Does he have another source of income? A taxable benefit in kind? A P2 notice of coding which explains why he's got a lower tax code than the default of 810L?

ValHaller

Effectively - without being able to read the payslips - they have probably got the tax right for the whole year, but have made a complete Pig's Ear of the cahnge to 4 weekly pay.

I suspect that they have continued with monthly taxation to month 12 but have bumped up against the fact that there are 13 4 week periods in the year. So now they must charge tax at Basic Rate on the whole 4 weeks pay with no tax allowances, because the tax allowance has been used up in the previous payments.

The should have left the change of payment period to a change of tax year or they should have changed to 4 weekly tax back in august.

This is worthy of a grievance - but probably a complete waste of time.

[Deleted User]

Hi,

calculations seem right according to this site.

chrisbur

As ValHaller says they have started paying four weekly but appear to have continued taxing as monthly. I would also question employer about the dates showing on the payslip. Two dates appear on last payslip 5/4/2013 at the top and lower it says "Paid 8 April 2013" If 8 April is the pay date then week 4 of 2013/2014 tax year should have been used for a 4 weekly paid employee and if 5 April is the pay date then week 56 of 2012/2013 should have been used.

chris_h16

Thanks for your input.

I've just remembered my dad said some member of staff had said when they moved to paying 4 weekly they didn't change the tax band or something? Does this make any sense?


What would be the plan of action? The company have said that employees can't get that money back. Does my dad wait until he gets his P60 and check with HMRC?

Looking at it again it looks like they took the regular tax in March, then in April when they have added March and April together they have taken the tax for April but also took March tax again?

liney

Forget about adding this and that together. Is the total year to date pay correct? ie £11327.29 for the year?

If so then the total amount of tax deducated for the year (£833.66) is accurate according to listentothetaxman. This site is spot on.

Why is his taxcode only 715L though?

chris_h16

I believe the messed his tax up last year, and didn't pay enough so hes been paying it back this tax year.

chris_h16

I have to get him to find all his payslips and add them up. Yes I know I use that website.

Even if the tax has been collected wrong throughout the year, the employer shouldn't be able to just take a lump extra tax, that should be down to the P60 and HMRC and then you should get the option of paying the shortfall in tax over the next tax year.

ValHaller

chris_h16 wrote: »

..... Even if the tax has been collected wrong throughout the year, the employer shouldn't be able to just take a lump extra tax, that should be down to the P60 and HMRC and then you should get the option of paying the shortfall in tax over the next tax year.

The employer has NOT taken a lump of extra tax. They have mismanaged his tax through the year so that month on month since the change to 4 weekly pay, he has been underpaying

chris_h16

Its not up to the employer to take the difference from 1 payslip though.