Asda tax issues

scuddy

LittleVoice wrote: »

Tax-free allowance went up THIS year and "colleagues" are getting the full benefit of that.

What they got LAST year was a tax-free allowance for one payment when they weren't entitled to it.

The Tax-free amount goes up next year also, however, colleagues won't be getting the full benefit of it, because they have to payback the tax from pay period 14.

This should never have happened.

scuddy

caseymay wrote: »

My daughter has been asked to send a cheque for the amount in full by 3rd August - was not offered option to have tax code restricted next year and so pay it off in instalments which would make more sense.

She is a member of the GMB and will contacting them.

If she contacts her GMB union rep asap, they will be able to help.

scuddy

jem16 wrote: »

So do you think that ASDA workers should all get the benefit of an extra allowance that they were not entitled to?

Perhaps the GMB should campaign for monthly pay for all 4 week paid employees? That would stop this from ever happening again.

I think that Asda workers should have been informed at the beginning of the last tax year that there was going to be an issue with this, so that could have at least prepared for it.

I agree with being paid monthly, I am not sure why the pay period is 4 weekly, but it would be better to be paid monthly. Being paid Lunar is a pain in the butt.

jem16

scuddy wrote: »

The Tax-free amount goes up next year also, however, colleagues won't be getting the full benefit of it, because they have to payback the tax from pay period 14.

Which is owed because they got too much tax-free allowance last tax year.

This should never have happened.

Why not? Would you have preferred them to have got £10 less each month last tax year or £10 less each month next tax year. The net result is the same.

jem16

scuddy wrote: »

I think that Asda workers should have been informed at the beginning of the last tax year that there was going to be an issue with this, so that could have at least prepared for it.

The only way they would have prepared for it was to keep aside £10 per month. Realistically how many would have done that?

Being paid Lunar is a pain in the butt.

Totally agree.

scuddy

jem16 wrote: »

Which is owed because they got too much tax-free allowance last tax year.



Why not? Would you have preferred them to have got £10 less each month last tax year or £10 less each month next tax year. The net result is the same.

I'm not saying we don't owe the money. I am saying "WE SHOULDN'T HAVE TO OWE THE MONEY".

LittleVoice

scuddy wrote: »

The Tax-free amount goes up next year also, however, colleagues won't be getting the full benefit of it, because they have to payback the tax from pay period 14.

This should never have happened.

Yes it does. So are you suggesting then that HMRC will allow them two years (ie to 5 April 2015) to pay tax which was due 5 April 2013? Sounds a very good deal to me. (In fact being able to pay the under-paid tax over one year is also very fair.)

Of course they are getting the full benefit of the increases in allowance. I despair that you do not seem to understand that - or chose not to do so.

Walesbloke

I think one of the main issues for people is not whos got it right or wrong,its the fact that asda deal with tax for their employees but have failed to communicte with us about whats happening. In our store, most of us got our hmcr letters on friday and we have had no answers from asda at all.not even a memo to a manager or an email.
As we are led to believe that these big companys never make mistakes,everyone knows that isnt always true. Even if asda are not at fault,they have a duty to inform employees of any issues or changes and when asked a question they should answer it. Show us the facts and at least we'd be able to make an educated decision on whos right instead of having to turn to forums to piece together an answer.

scuddy

Exactly Walesbloke.
The company first of all, must have know, there were going to be 14 pay periods in the last tax year. they therefore must have known that this issue was going to arise at this point in the year.

They could quite easily have communicated this to the employee's at the beginning of last year, and then set up a scheme where they could allow colleagues to save money every month to ensure they had enough to pay what was going to be owed at the end tax year.

jtr2803

scuddy wrote: »

Exactly Walesbloke.
The company first of all, must have know, there were going to be 14 pay periods in the last tax year. they therefore must have known that this issue was going to arise at this point in the year.

They could quite easily have communicated this to the employee's at the beginning of last year, and then set up a scheme where they could allow colleagues to save money every month to ensure they had enough to pay what was going to be owed at the end tax year.

I don't think you could even begin to comprehend the legalities behind this idea, especially in a company of its size. It's not feasible and I don't know of a payroll system in existence that can cross reference two different tax years in one payment and split the tax code accordingly, that's why employees underpaid tax.

I don't think anyone on this thread has argued that not informing staff was an OK thing to do, but the fact remains that the tax is owed and no one is out of pocket, they just haven't paid the tax in the correct year.