Underpaid tax?

elliew92

I left november 23rd 2012 in my last job and started my new one on the 26th november 2012.

Gas_Powered_Toothbrush

elliew92 wrote: »

I left november 23rd 2012 in my last job and started my new one on the 26th november 2012.

What date of leaving is on the p45 from your first employer? Does it match the date you actually left?

And does the final tax code on your p60 have a week1/month1 indicator next to it?

elliew92

Leaving date on p45 is November 24th 2012. and the tax code has M1 next to it.

Now me and my mum figured it out im fine with my current job and have paid tax.

Now where im left confused is my former employee i know myself i paid tax now when i called today they said on my p45 i didnt pay tax as i was paid under 8105 as my tax code was 810L.

Now what i didnt get was is they said they have took the money back from the tax i paid? and the company has it as i owe the company money. But surely wouldnt the tax company do this?

Im struggling as my payslips were all online with that company and ive now requested them to send me my last 2 payslips to prove i have paid tax as i know i paid tax and i cant access it as its online and my account has now expired due to me leaving.

What do i do if my payslip comes back as i have paid 0 tax? Even though i did pay tax as my p45 says no tax either?

System

You left your old job on 24/11/12 which is week 34 of the 2012/13 tax year.

Your tax free allowance for the whole of that year was £8105.
If you divide £8105 by 52 that means every week you were allowed to earn £155.86 before tax would have been due to have been paid.
So having worked to week 34 you would have been entitled to have the first 34 x £155.86 = £5299 tax free and anything above that should have been taxed.
The fact that your old employer paid you £7120 to week 34 without taking tax off you is curious. Witholding your tax from HMRC because you supposedly owed the company money is also curious.
By my calculations you should have paid £7120 - £5299 ( £1821) @ 20% = £364.20 in tax at that old job.

It would be interesting to see your payslips to see how they accounted for that witholding on them.

Savvy_Sue

elliew92 wrote: »

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.

Pam17 wrote: »

The fact that your old employer paid you £7120 to week 34 without taking tax off you is curious. Witholding your tax from HMRC because you supposedly owed the company money is also curious.

the first is curious, the second is IMO wrong, but may be where the problem has arisen.

Hopefully the OP can get hold of his last couple of payslips and hopefully they'll show what tax had been deducted (the info on the last payslip should match what's on the P45).

Why did the company say you owed money, and did you agree with them at the time?

elliew92

Savvy_Sue wrote: »

the first is curious, the second is IMO wrong, but may be where the problem has arisen.

Hopefully the OP can get hold of his last couple of payslips and hopefully they'll show what tax had been deducted (the info on the last payslip should match what's on the P45).

Why did the company say you owed money, and did you agree with them at the time?

I asked my company to send me out the payslips they said no. So i managed to get something which i said i paid 491 in tax and then had a tax rebate which i wasnt aware of. Now which is also curious is my date of birth on my p45 is wrong? so would this affect anything? My date of birth is correct with my new job.

Well this is what i didnt understand and i will call them again as when i left they owed me money as to why i got £80 in a cheque in the post. From what i remember she said owed hours?

webarb45

You may end up paying too little tax if your income increases but HM Revenue & Customs (HMRC) doesn't know about it right away so hasn't adjusted your code, or if your employer or pension provider uses the wrong tax code. Either way you'll often be able to pay back the 'underpayment' for the current or earlier tax years - through an adjustment to your tax code. You may end up paying too little tax if your income increases but HM Revenue & Customs (HMRC) doesn't know about it right away so hasn't adjusted your code, or if your employer or pension provider uses the wrong tax code. Either way you'll often be able to pay back the 'underpayment' for the current or earlier tax years - through an adjustment to your tax code