Tax code....

wendylc

Hi,

Can anyone help us?

Yesturday my partner had a phone call from a friend he use to work with (both got made redundent 21 months ago).

The friend said he had had his new tax code for this year and it was only just over 100 and when he phoned up the tax office they told him he owed them money from when he got made redundent???????????

The trouble is my partner hasn't got a new tax code yet and is now worried if we owe money to the tax man.
I have been trying to phone the tax office all morning and can't get through. Everyone at my partners work place has had a new code except him.

This surely must be wrong how can our friend owe money when the addminisrators sorted out the redundency money.

Please help.

monkeymax

wendylc wrote: »

Hi,

Can anyone help us?

Yesturday my partner had a phone call from a friend he use to work with (both got made redundent 21 months ago).

The friend said he had had his new tax code for this year and it was only just over 100 and when he phoned up the tax office they told him he owed them money from when he got made redundent???????????

The trouble is my partner hasn't got a new tax code yet and is now worried if we owe money to the tax man.
I have been trying to phone the tax office all morning and can't get through. Everyone at my partners work place has had a new code except him.

This surely must be wrong how can our friend owe money when the addminisrators sorted out the redundency money.

Please help.

Unfortunately, redundancy money is only exepmt to £30,000 after this figure it becomes taxable. Some employers do not take this into account and some can suffer a shortfall that will not be noticed until the individual starts a new job. If your husband has started work and has not yet recieved a tax code get him to complete a P46 form to let the tax office know his employment position. If the tax code comes back reduced there should be an explanation as to why.

wendylc

I think I got you a bit confused.
My partner and his friend got another job the following week after getting made redundent, so this isn't a new job.
The tax code last year 06/07 was fine and they where no problems.
But his friend has got his new tax code 07/08 and this has come up, his new one is only just over 100 and my partner has not recieved his new one yet so he is worrying the same is going to happen to him.
As for redundency money they both got under £5000.

monkeymax

wendylc wrote: »

I think I got you a bit confused.
My partner and his friend got another job the following week after getting made redundent, so this isn't a new job.
The tax code last year 06/07 was fine and they where no problems.
But his friend has got his new tax code 07/08 and this has come up, his new one is only just over 100 and my partner has not recieved his new one yet so he is worrying the same is going to happen to him.
As for redundency money they both got under £5000.

If the redundancy money is under the £30,000 limit no tax will be due. However, if when your partner was made redundant and started at his new job he did not hand in his P45 it could be a case that he recieved a full years allowances in both jobs. Check his P60 from 06/07 and (if you still have it) his p45 details from the last job. He should have only recieved 5035 allowances, anymore and it will create a shortfall.

crawli1

Get OH and friend to write to Tax Office giving all the information they can (date made redundant, how much redundancy paid, date started new job) and ask the tax office to review that particular year and subsequent years to make sure there isn't an error somewhere.

wendylc

Thankyou to you both for replying,

I have just found 2 wage slips one from 10/2006 and one from 05/2007
and the tax code for both is 489L.

Any ideas??????????

monkeymax

wendylc wrote: »

Thankyou to you both for replying,

I have just found 2 wage slips one from 10/2006 and one from 05/2007
and the tax code for both is 489L.

Any ideas??????????

did your partner recieve any benefits in that job? that may explain the smaller code. Are both payslips from the same job? if they are from the second job it could be a reduction due to allowances recieved at the first job. There is roughly £140 allowances taken off which works out around a week and a half's allowances. What time of the year was he made redundant? although since they are from seperate tax years it may be a case that the current employer is operating the same code they originally got on the P45. Your partner made need to contact the employers tax office and find out if this is the case.

wendylc

My OH didn't recieve any benefits in either job.
The payslips are from the same employer/job.
He was made redundent in 26th August 2005

monkeymax

wendylc wrote: »

My OH didn't recieve any benefits in either job.
The payslips are from the same employer/job.
He was made redundent in 26th August 2005

In that case his current employer are using an old code, nearly 2 years old. He could stand in line for a rebate as the code has gone up twice since 489L was used. Get OH to write to his Tax office (the one his employer is dealt with) and explain.

wendylc

Thanks I will get onto that straight away.