wrong tax codes now underpaid tax ?

lisab3664

Hi can someone plz help
My previous job did not earn enough to pay tax (2000) started a new job got the tax code 812L....then a dew months later received a notice saying 810L. Not knowing much about these sorts of things I just thought this was normal? Then this year I got a form from my employer to claim expenses for mileage petrol etc....during all of this my employer was bought out and changed its name but is still the same company etc not changed jobs or got a 2nd job. I then got info from tax office saying my expenses were 1500 but that I had now underpaid tax so they were using the 1500 and that I still owed 340 to them. They have saud the underpayment came from me apparantly having 2 jobs that were on the same or similar tax code? This is wrong I only have 1 job...yes the company chabged name but I dont know how the tax office arrived at the 2 jobs thing and this confusing tax code carry on?? So now im stuck they have swallowed ny 1500 pound and I still apparently owe them further....have tried on numerous occasions to sort this through the help line but its like banging my head off a brick wall.......what do I do????

redpete

Never mind if they think you have had 2 or 3 jobs or not. You need 3 bits of information from HMRC before you can start complaining:
- How much do they think you have been paid in total (by all employers) over the year?
- How much tax do they think you have paid?
- How much tax do they think you should have paid?

For instance they might not have taken into account the £2000 from your previous job nor the income from this job but before the name change when calculating the tax due on income in this job after the name change.

lisab3664

16601 paid for year
1188 job expenses
Income after deduction 15413
Personal allowance 8105
Tax chargeable 1461.60
Tax paid 1113.20
So therefore 348.40

The underpayment letter received says the underpayment will be collected through your tax code this is due to you having two employments at the same time and both employers were applying a PAYE code giving tge full tax free allowances - you therefore received more allowances than you were due

zygurat789

lisab3664 wrote: »

16601 paid for year
1188 job expenses
Income after deduction 15413
Personal allowance 8105
Tax chargeable 1461.60
Tax paid 1113.20
So therefore 348.40

The underpayment letter received says the underpayment will be collected through your tax code this is due to you having two employments at the same time and both employers were applying a PAYE code giving tge full tax free allowances - you therefore received more allowances than you were due

Gross income 15,413 less PA 8105 = 7308 @ 20% = £1461.60
Tax charged £1461.60 less tax paid £1113.20 = 348.40
£1742 @ 20% = £348.40

They are charging you tax on £1742 which they say you have earned.

Do you have a p60, what is the gross pay?
Ring HMRC and ask how they arrive at £16601.

lisab3664

348.40 is what they say I still owe them as underpaid in tax?
My p60 is gross 13624. The way they got to the 16601 was
Previous employment 2976
9684 my current employer
3940 my current employer
The two higher amounts are from the same company but it changed name.

Caz3121

lisab3664 wrote: »

My previous job did not earn enough to pay tax (2000) started a new job got the tax code 812L...

how long did you work for your previous employer? were you part time? did they not deduct any tax?
Did you give a P45 from this job to your new employer when you started?

lisab3664

2 years on a part time basis and never earned enough to pay tax....and they messed around for weeks with the p45 so had to fill in a form with new employer with ni number on etc?

zygurat789

lisab3664 wrote: »

2 years on a part time basis and never earned enough to pay tax....and they messed around for weeks with the p45 so had to fill in a form with new employer with ni number on etc?

Yes but that's not the point. The point is that your earnings from your part time employer should have been brought forward to your new current employer. At the moment, from what you are telling us £2976 has not been taxed in the year. Less expenses of £1188 gives £1788 which is approx what they are asking for tax on.

lisab3664

Sorry for sounding stupid but I know nothing about stuff like this?? So are they right or???

Funky_Bold_Ribena

Possibly; it looks like the £2976 was never added to your total for the year, and as your total for the year went above the tax threshold, and everything above that needs to be taxed, you have underpaid your tax.

jem16

lisab3664 wrote: »

Sorry for sounding stupid but I know nothing about stuff like this?? So are they right or???

Your P60 only gives figures from your current employer as you did not hand in a P45. You have said that this is £13,624.

You then have to add £2976 to that P60 total to get the whole total of earnings in the tax year. That makes £16,600.

So yes HMRC are correct and you owe tax.