Underpaid tax?

elliew92

Had a letter saying ive underpaid tax by £344 for tax year of 12/13.

I left and started a new job in november 2012. I was on tax code 810L. my p60 says earnings of £7120. So my old employer told me i didnt have to pay tax as i earned under 8105 which is what the tax code was.

For my new job thats the tax code i was on also until april 2013 which was 810L. My p60 says i paid £440 in tax which is from my current job as im full time.

So where do i owe money? I can see i dont? Any help?

Caz3121

what was the total income from the 2 jobs and tax paid?
gross income £7120 + ? =
tax paid £440

your tax allowance is normally split over 12 months for PAYE rather than paying nothing till you use up the allowance so if your income from your old job would have taken you over the allowance had you stayed there for 12 months then you should have been paying some tax each month

Cycrow

if you earnt over £8105 in the year, then you should have been paying tax on the first job.

the tax code, doesn't give you an allowance per job, its per year on all earnings.

so you need to add the earnings of both jobs together

elliew92

Im currently at work but i had a income of £4176 from what i calculated as i dont have the p60 on me its at home.

Im confused on if i need to pay it or the tax people made a mistake?

elliew92

Cycrow wrote: »

if you earnt over £8105 in the year, then you should have been paying tax on the first job.

the tax code, doesn't give you an allowance per job, its per year on all earnings.

so you need to add the earnings of both jobs together

But then doesnt that mean i was on the wrong tax code for my 2nd job? the tax people said to them i was on 810L. for my first job i only earned 7120 so i was below 8105. which is why they said i didnt need to pay tax?

McKneff

Are you getting your p45 s and your p60s mixed up.

Your old employer would give you a p45 on leaving.

Your new employer would give you a P60 at the end of the tax year.

McKneff

Add all your earnings together from both jobs.

Your tax liability should be 20% of the difference. If it is less than this then yes, you have underpaid.

elliew92

McKneff wrote: »

Are you getting your p45 s and your p60s mixed up.

Your old employer would give you a p45 on leaving.

Your new employer would give you a P60 at the end of the tax year.

yes sorry p45 from previous employer and p60 from current employer

Cycrow

elliew92 wrote: »

But then doesnt that mean i was on the wrong tax code for my 2nd job? the tax people said to them i was on 810L. for my first job i only earned 7120 so i was below 8105. which is why they said i didnt need to pay tax?

The tax code remains the same between jobs. It only changes if you have 2 jobs at the same time.

If you were paid monthly at your previous job, then you will have 1/12 of your allowance each month. If you earn over that much each month then you will get taxed on the remaining.

If you had ended the job in november and not got another one, therefore only paying the 7k for the year, you wouldn't have had to pay tax, but you will have still paid some, then got it back at the end of the year.

the p60 should show the total earnings from both jobs, you need that figure to work out how much tax you should have paid.

zygurat789

elliew92 wrote: »

But then doesnt that mean i was on the wrong tax code for my 2nd job? the tax people said to them i was on 810L. for my first job i only earned £7,120 so i was below £8,105. which is why they said i didnt need to pay tax?

810L would have been the correct tax code in each of two consecutive jobs.
This code means you may earn £675.42 tax free each month.
If you left the first job in November (after 5th) then you worked there for eight months and could have earned £5403.33 before you should have paid tax.
If you paid £440 tax in the year with a tax code of 810L then your total earnings should be £10,305 and if you earned £7,120 in your first job then you earned £3,185 in your second job.
That's roughly how it should have worked, what actually happened?

elliew92

zygurat789 wrote: »

810L would have been the correct tax code in each of two consecutive jobs.
This code means you may earn £675.42 tax free each month.
If you left the first job in November (after 5th) then you worked there for eight months and could have earned £5403.33 before you should have paid tax.
If you paid £440 tax in the year with a tax code of 810L then your total earnings should be £10,305 and if you earned £7,120 in your first job then you earned £3,185 in your second job.
That's roughly how it should have worked, what actually happened?

My p60 is at home along with my p45. But tax company said i need to pay £748 tax for the year of 2012/2013. But ive only paid £440. When i called them they said its just where i changed jobs?

Now i know for definate that in my 1st job i earned £7120. I did pay tax but my company today who i worked for previously i called and they said that i shouldnt of paid tax as i was on the code 810L so they paid me back the tax? But really they didnt as they claimed i owed money to the company.

For my current job ill have to look at my p60 when i am at home on what i have earnt as i cant think from the top of my head i may have calculated earlier the wrong amount.

So the tax people say i owe them £344 for the year as ive only paid £440 in tax.

Does that make sense?