The dreaded D0 Tax code - Advice please

bb69

Hi there

I was on a full time secondment(which ended March 2013) and have now reverted back to my original job at 36 hours a week (it used to be 37.5 hours) and will still continue to be seconded for 3.5hours a week. I am paid by my main place of work who then invoice my secondment.

I have received a letter from HMRC stating my code will be D0 and I will be on 40% tax.

I am querying this as from rough calculations (I am no Carol Vorderman) I will have a £250 less per month, which I wasn't expecting.

Please can you advise whether this is correct? Can the 40% be taken off my whole salary instead of my seconded salary?


I have checked online take home pay calculators and they state I will receive more money than I did for my April salary which probably isn't right.

Thanks in advance

Edit - Forgot to add the reason why I am querying is because I am now earning less a year than on the full time secondment and also less than I did before I went on secondment (I used to receive on call payments which I no longer do)

Thanks again

Dazed_and_confused

bb69 wrote: »

Hi there

I was on a full time secondment(which ended March 2013) and have now reverted back to my original job at 36 hours a week (it used to be 37.5 hours) and will still continue to be seconded for 3.5hours a week. I am paid by my main place of work who then invoice my secondment.

I have received a letter from HMRC stating my code will be D0 and I will be on 40% tax.

I am querying this as from rough calculations (I am no Carol Vorderman) I will have a £250 less per month, which I wasn't expecting.

Please can you advise whether this is correct? Can the 40% be taken off my whole salary instead of my seconded salary?


I have checked online take home pay calculators and they state I will receive more money than I did for my April salary which probably isn't right.

Thanks in advance

Edit - Forgot to add the reason why I am querying is because I am now earning less a year than on the full time secondment and also less than I did before I went on secondment (I used to receive on call payments which I no longer do)

Thanks again

You need to be clearer about what is actually happening, who invoices who is irrelevant, what matters is who is paying you. Which company does the tax code relate to - the employers name is shown on the coding letter I think.
How much is each employer paying you, what is the tax code being used by the employer that doesn't use the D0 code?

jem16

bb69 wrote: »

I have received a letter from HMRC stating my code will be D0 and I will be on 40% tax.

Are you saying your main employment is being given the D0 code? If so HMRC obviously don't realise the secondment has finished. We're you given a P45?

Please can you advise whether this is correct? Can the 40% be taken off my whole salary instead of my seconded salary?

It's not correct but it will be what happens until you get your records sorted out with HMRC.

bb69

Thanks for replies

Employer A - Main place of work
Employer B - Secondment (which continues but on fewer hours)

I got paid and still do by employer A for both

I received 3 payslips for April generated by employer A but relates to 1 from A and 2 from B (not sure why two but the hours added up)

I have not received a P45 to be honest didn't think about that.

The D0 tax code is named as employer A so I guess I need to clarify what portion of my salary that comes off of?

Thanks I will phone on Tuesday first thing. I think it may be too late for my May wage which is a shame, I should have looked into this sooner..I appreciate you taking the time to help me.

jem16

bb69 wrote: »

I received 3 payslips for April generated by employer A but relates to 1 from A and 2 from B (not sure why two but the hours added up)

Can you clarify what tax code was used on each payslip please?

The D0 tax code is named as employer A so I guess I need to clarify what portion of my salary that comes off of?

If everything is being paid by Employer A then yes you would need to clarify that. If you are having 3 payslips (although I would have thought 2 would be enough) then each should have a tax code.

bb69

Hello

All 3 payslips have the Tax code 944L CUMUL

Thanks

jem16

bb69 wrote: »

Hello

All 3 payslips have the Tax code 944L CUMUL

Thanks

That's not correct and will probably have led to an underpayment of tax I'm afraid.

What were the totals on each payslip - ie gross pay and tax? Also total taxable to date and total tax to date.

I'm assuming these 3 payslips were for Month 1 as you said they were from April?

patanne

Does each payslip have the same payroll number or do you have 2 or 3 different payroll numbers

Does the gross pay total over all 3 payslips or are they all completely separate?

bb69

Hi thanks to all for help.

The wage is for month 1 April

The payroll numbers are slightly different actually (I didn't notice., not very observant ha ha).
payslip one - usual payroll number
payslip two - the usual number then -5
payslip three -the usual number then -4

They are all separate for gross pay with tax and NI (different codes) on each
Thanks

jem16

bb69 wrote: »

Hi thanks to all for help.

The wage is for month 1 April

The payroll numbers are slightly different actually (I didn't notice., not very observant ha ha).
payslip one - usual payroll number
payslip two - the usual number then -5
payslip three -the usual number then -4

Looks like they are being handled separately but without actual figures it's not certain. If they are being handled separately each would have a tax code with the 944L only being used on one of them. The other 2 should have BR or D0 (unless splitting your tax code would help).

They are all separate for gross pay with tax and NI (different codes) on each
Thanks

Actual figures would help as it's not so much the monthly gross pay and tax but the taxable figure to date and tax paid to date which is important.

Also the actual figures would help see if the D0 code on one of the 2 smaller amounts would be correct.

patanne

This definitely looks to me like you have received your tax code 3 times which is bad news unless you remember that you owe quite a bit of tax. But your new tax code should sort that out but which of the payroll references does it refer to? Or does it refer to all three? Sorry it is just one question after another isn't it?