Wrong tax code for 3 yrs and now into 4th!!!

Alidolly

Was working full time in 2009 but went off on maternity leave. Being a wee bit busy, never noticed my tax code had been changed till I received a letter saying I was due a tax refund for 2010/2011 and 2011/2012 which i received a few months ago :j

Found a letter in my files giving tax code for 2012/13 but when I checked my payslip, this was different and was the same code I'd had the previous two years (which was incorrect)

phoned the tax office about a month ago as thought I'd be due another rebate for last year and was told they couldn't process till the end of yr figures arrived from my employer (fair enough). Asked what my tax code was and they said they would send out a letter with the correct code and alert my employer that the code I was on was wrong....

Well, got the letter ok but when I checked with my employer, they have not received anything so according to their records I'm still on the old (incorrect) code. Also said their system is online so should be updated by HMRC automatically and that they couldn't change anything unless HMRC made the change even if I gave them a copy of my letter with the correct code :mad:

I'm due to get paid on Monday so will be able to check my online payslip as to what code they have me on but this is now into the FOURTH year of being incorrect!!!

Any suggestions as to how to get them to change it given I've already contacted them and went though the 4 hour press button option to get to speak to human

I know the system is has changed with the employer now giving salary details monthly but if the tax code is wrong, I'm still getting taxed at a higher rate each month and working part-time, it's money I could be doing with in my pocket as its not gaining interest at their end and could I be due any compensation for this fact? I.e 3 years (so far) worth of of rebate (totalling a couple of thousand pounds rather than a few quid).

jimmo

Going on maternity leave is not necessarily a reason for your tax code to change so you will need to establish what has gone wrong.

The fact that HMRC has repaid you for 2010/11 and 2011/12 suggests that the HMRC records for you are pretty sound but there may well be a breakdown in the communication between HMRC and your employer. You need to check the finer details carefully particularly your National Insurance number. Are HMRC and your employer using the same NI number? Also check whether the tax reference number is the same on your coding notice and your payslips and P60s.

The standard code for all people with one job is now 944L (2013/14). What does HMRC say your code is and what code is your employer using?

Rumour has it that phoning HMRC early in the morning is the best bet and, whilst I have only needed to do it once, I phoned at 8.05, admittedly had to listen to the usual rubbish and press a few buttons, got through to a human being, and sorted my problem before 8.15. Give it a try.

As to compensation I have to say that, from what you have said so far, you are probably more at fault than HMRC or your employer. It is your responsibility to check coding notices when received and to check that your employer is using the correct code.

However if we can establish what went wrong that could change.

Savvy_Sue

Alidolly wrote: »

Well, got the letter ok but when I checked with my employer, they have not received anything so according to their records I'm still on the old (incorrect) code. Also said their system is online so should be updated by HMRC automatically and that they couldn't change anything unless HMRC made the change even if I gave them a copy of my letter with the correct code :mad:

They are right in saying that they can't just change your code on sight of your letter from HMRC, but I hope they're not suggesting that HMRC physically make the change on their systems.

They should be notified electronically that your code has changed, but someone, somewhere in your payroll dept, still needs a press a few buttons.

It took a couple of phone calls for one of my colleagues to get her tax code changed last year, however - she got the new coding notice, our payroll company did not. I can't think it will be better this year, sadly.

patanne

Does your tax code end with an L on your payslip? HMRC do not send out new tax codes for each employee to employers but a "letter", I believe it is form P9(X). This instructs them to increase all employees tax codes ending in L by a certain number, this year it should be 134. If you were put on their system with a different letter then your tax code will not have been uplifted as it should have been. Has your tax code changed at all over the years? Do any of your colleagues have the same problem? Maybe if we can find out what has gone wrong we can make sure it doesn't happen again next year!

CLAPTON

maybe if you posted the specific details, we could help a little better to understand what went wromg and tell you how to check things are correct in the future

Alidolly

OK, update.

Phoned HMRC yesterday (3.5 mins to even get to the option of speaking to a human then a further 18 minutes before someone answered).

Explains situation that I have the wrong fax code (K29) when it should be the standard L code. Girl checks system and says employer was informed electronically that the code was wrong. Assure her this has not been the case as code is still incorrect and that employer had not received anything from them. Checks NI number, payroll number etc which are correct. Then she claims they have never issued the K code and says it must be a computer "glitch" with my organisations software and to get our payroll department to call them.

So, now I have to wait to see what the "glitch" is and hope that it gets sorted sooner ather than later...and check next months payslip to see if there is any change...