Need Help! PAYE monthly more than based on annual pay?

Roselondon_2

Hi, everyone, I hope to get some enlightenment here about the difference between paying tax monthly and paying based on the annual gross pay.

For some reason (I still can't figure out), when I calculate the tax to pay for 2012-2013 based on annual gross payable income on (P60), the figure is £2000 less than what I actually paid based on PAYE monthly. I asked my payroll department, they replied it's normal I pay more if I get this tax code for paying based on monthly salary. If I want to apply for paying tax based on annual income, I would have to request a new tax code with HRMC.

It sounds strange, as when I had to go through the self assessment, HRMC their calculation is based on total gross pay.

Can anyone help to clarify?

Many thanks.

CLAPTON

give some details


what was your taxcode on your March payslip
what was total pay to date
what was total tax to date


what were the figures on your P60

antrobus

Roselondon wrote: »

...I asked my payroll department, they replied it's normal I pay more if I get this tax code for paying based on monthly salary. ...

What's your PAYE code? I'd guess you're being taxed on a month 1 basis for some reason.

System

I agree with Antrobus.
Sounds like you were on a non-cumulative week1/month1 code and some months your income took you into a different tax band than others.
It's easy enough to get a refund just ask HMRC.
Non-cumultive codes are issued when HMRC don't have details on what you were doing prior to the employment starting in that tax year.
Your code this year should be a cumulative code if you are in the same employment.

Roselondon_2

Hi, it's for year 2012-2013

my Final Tax Code is 628LM1.
Payable income on the P60 is 60417
Tax paid is 16327
- Am I right that I overpaid >£2000?

By the way, I still don't know if one "has to" inform the HMRC about change of job and change of address in person?

Thanks!

CLAPTON

your tax code was incorrect (i.e. a non cumulative tax code) which could explain why you paid too much tax.

however

did you change jobs during that year
did you receive any benefits in kind (car, health insurance etc
did you owe any tax from previous year)


and what is your tax code for this year?

patanne

yes you do need to notify any change of address yourself & it can never do any harm to let them know about a change of job, especially if there is a chance they may have incorrect information.

Roselondon_2

CLAPTON, you are right! Had a look, my tax code this year has changed to 896L! Is this one a normal tax code for an ordinary empolyee in the PAYE system?

My tax code was messed up a few times since I changed job in 2011. I didn't know HMRC had no means to be aware of it. Then they deemed my current job as the 2nd job, then the tax code was corrected/amended upon request and corrected/amended again...

I was actually just told last week I owe them £2000 tax in year 2011-2012! And a penalty for over £800! I feel so awfully frustrated, taking into account all the "complexity" (changed job once and home address twice in a year), plus I had no clue about the tax system.

Do they actually listen to people and waive the penalty if it's because of my lack of knowledge on tax system?

Plus if I really overpaid in 2012-2013, will this help on the case of underpayment in 2011-2012 - all because of the same reason - tax code changes due to job change.

jem16

Roselondon wrote: »

CLAPTON, you are right! Had a look, my tax code this year has changed to 896L! Is this one a normal tax code for an ordinary empolyee in the PAYE system?

No it's 944L for this tax year. Yours is slightly less - do you have taxable benefits at work?

Do they actually listen to people and waive the penalty if it's because of my lack of knowledge on tax system?

What is the penalty for? It's not simply for underpaid tax.

I'm afraid ignorance of tax will be no excuse.

Plus if I really overpaid in 2012-2013, will this help on the case of underpayment in 2011-2012 - all because of the same reason - tax code changes due to job change.

I'm sure it will help in the case of sorting it all out but nothing else really.

When you changed job did you not hand in your P45?

Roselondon_2

Hi Jem, I moved into this country in 2010 and had no clue about this P45 form until this week. I changed address, so never received it from my previous employer!