Taxable earnings declared in wrong tax year (Asda)

dtaylor84

The payroll company are not allowed to deduct more tax than the rules set down by HMRC and the government say -- they have no choice in the matter.

I am surprised you haven't had the option to have your tax code changed and have the underpayment collected throughout this (or possibly next) tax year over around 12 months. But again, that's up to HMRC alone.

patanne

So they (HMRC in particular) have known for years that this is going to happen. There HAS to have been an alternative - just no-one could be a**** sorting it. Just lets send someone who is on low enough pay already a bill that the chances are they can't afford to pay. Sorry but they could have made amendments to sort this and they just couldn't be bothered.

Gas_Powered_Toothbrush

HMRC did not 'warn' Asda. They published guidance saying how to operate payroll, and Asda followed it. RTI only came in this year for most employers, so HMRC won't even have known when Asda paid their employees or how frequently.

bocadillo

jem16 wrote: »

Asda could do nothing about it except inform its employees that it was going to happen. They simply cannot just adjust wherever they feel like it.


Unfortunately it isn't about simply dividing by 14 instead of 13 as PAYE doesn't work like that.

It is exactly about simply dividing by 14 instead of 13 - but it would be the responsibility of HMRC to put this in place for this one year. ASDA could not do it of their own accord.

chrisbur

squidgysponge wrote: »

Well, if that is the case then why are we not hearing of other companies with 4 week paydays having the same issue?

What did center parcs, for example do, to get around the issue? I'm yet to hear of anyone working for them who's got a tax underpayment letter, yet they get paid 4 weekly just like Asda employees.

As jem16 says not all four weekly paid employees are affected this year, only those who had a payday on 5 April.

jem16

dtaylor84 wrote: »

I am surprised you haven't had the option to have your tax code changed and have the underpayment collected throughout this (or possibly next) tax year over around 12 months. But again, that's up to HMRC alone.

From the replies here and on the other thread, it appears that they have had the option to have the underpayment coded out in the next tax year. The only people who have not been given this option are those who don't earn enough to have it taken this way.

dori2o

As posted on the other topic.....

Those who have an income above £10631 will be able to have their underpayment coded.

Those who have an income of less than £10631 will either a) have to pay in full, or if this is not possible can contact HMRC and tell them you would like to speak to a Hardship advisor to arrange to repay the amount over a number of months. This will be either by Direct debit or via payslips.

This is not something new. This situation raises its ugly head every so often for those people paid weekly (every 5 or 6 years), those paid 2 weekly (every 11 years), and those paid 4 weekly (every 22 years).

This has been the case since PAYE was introduced in 1944.

HMRC have not been in a position to tell you about it because before the start of this tax year they did not know how frequently you are paid. Neither did they know how much you were paid each time you were paid, neither did they know how much tax you paid each time you were paid.

The new system for notifying PAYE earnings and deductions 'Real Time Information' which was introduced for the majority of employers from 6 April 2013 changes that, and now HMRC know how frequently you are paid, they know how much you have been paid, how much tax you have paid etc etc.

Asda should have warned you about it, unfortunately they didn't, but Asda have operated PAYE correctly.

If you need to resolve issues with the collection of the underpayment, then only HMRC can help. For advice on why this has happened, despite myself and other explaining it to you the best we can, then speak to Asda payroll.

mttylad

As posted on the other topic.....

What other topic?

Surely we don't run more than 1 thread per topic... lol

dori2o

mttylad wrote: »

What other topic?

Surely we don't run more than 1 thread per topic... lol

There is a similar thread running in the Employment, Jobseeking and Training section of the forum

antonic

This is the other thread :

https://forums.moneysavingexpert.com/discussion/4702749