Overtaxed in April - PAYE

CashCrammer

Hi,

I did a post over in the employment board, however it was suggested I also posted in this board (probably more appicable here). Here is the issue:-

I recently joined a new company at the end of February with my first wage payment due a few weeks after that (had this confirmed by HR). However it was not paid correctly as I was missed off the payroll so they advanced me my wages (£2,200.00) via a CHAPS transfer however there was no tax/ NI applied to it just a lump-sum cash advance.

When it came to the following pay date they put me onto the payroll however as they missed me off it the first time, they did a cumulative payment i.e. double the value it normally would be (being 2 months worth). They also deducted the previous cash advance so things were correct. I usually get taxed about £500/ month, so was expecting a circa £1000 tax deduct. However the tax was double (£2,010.90) therefore I believe i'm down nearly £1000 on my net pay this month.

FYI - My total gross salary is £39,900.

Total gross payment on this payslip: - £7,148.75 (from 26/02/13 inc 2 weeks in advance)

Tax - £2,010.90
Ni - £642.96
Advance - £2,200.00
Tax Code: 944L


The payroll people said it was the only way they could do it, however I believe the payroll system obviously thinks i'm on double the salary that I normally am, due to the 2 months being added into 1 wage payment. Therefore it taxed me a large portion of this at 40% however i'm still just within the 20% bracket so i'm not due any tax at 40%!

I've spoken to HMRC and they said it is up to payroll to refund the tax as we're just into the new tax year.

Ultimately i'm nearly £1000 down due to the payroll not adding me the first time, and processing my wages incorrectly, and struggling because of it - is there anything by law etc that means they have to pay me back this circa £1000 asap as it was their error?

I called HMRC a few times, the last person I spoke with there said that most of the overpaid tax element should be repaid in my next months (May) salary (even though I only pay circa £500/ month tax they can refund over this value in 1 month)? I've also heard however it may just come through circa £50/ month until the end of this tax year (april 14)! Any idea what is more likely?

I would keep trying with my payroll department but it's like banging my head against a brick wall with them.

Thanks for your input.

chrisbur

The original post can be found here....
https://forums.moneysavingexpert.com/discussion/4548393=
The main problem that the OP has is that their earnings are very close to the point at which 40% tax is payable and the extra payment due last year but paid this year is going to result in this year's earnings falling into the 40% band. The result will be some of the 40% tax being returned month by month untill the tax year end and the rest remaining as 40% tax. I suggested posting on this board as I thought I remembered something along these lines coming up before where tax could be allocated to the previous year (though I would assume not untill the tax year end) by HMRC.
I later found the following which suggests to me that this could be possible but perhaps someone else has better knowledge of HMRC rules and could suggest another line or confirm that this would work and how the OP would need to go about requesting the re-alocation to last year.
From my post on original query...
The principal behind this section looks like it could cover your case though not the example given ....
http://www.hmrc.gov.uk/manuals/eimanual/EIM42290.htm
"It can happen that payment is actually made after the date the employee is entitled to be paid. For example, to help out a hard-pressed employer employees may agree not to draw their pay. In that situation they are deemed to have been paid on the day they were entitled to be paid."