HMRC Think I Have Two Jobs

GreenSaints

Hi All,

I'm not very good at tax, but I know when something is very wrong!

I received a letter on Saturday about my new tax code, however I had two letters in the same envelope.

I was made redundant in 9th August and started my new job on the 12th August. My old employer took a while to send my P45, but gave that to my new employer about 8 weeks ago.

In the letters, it said that my previous employer has a tax code of BR and my new employer ta code is K717!

I rang up the tax office and I told them that I only have one job so I'm back to my old code of 636L (this was due to benefits at my old employer)

My questions are:

1. How did they think that I have two jobs? Does it mean my new employer hasn't sent them my P45

2. They said they would send a letter to my new employer with my tax code within 10-14 days. I get paid on the 25th - so does that mean I will have a very low salary this month? Will it get sorted by December?

Thanks in advance

Sinhanada

The tax office are notoriously slow at correcting things. The only thing you can do is check with your present employer and see if their tax code matches what it should be. If not, contact HMRC again and ask for them to confirm when it will be done.

You will not be out of pocket this year - they will correct any under \ over payment throughout

TadleyBaggie

They do this all the time, I moved jobs at the end of June, 4 months later when my new employer informed them of my company car benefit, I also ended up with a K code. They still thought I was also working for previous employer. Strange thing is that also did the same thing 3 years previously...except they thought I was working for 2 employers AND claiming JSA!

System

GreenSaints wrote: »

My questions are:

1. How did they think that I have two jobs? Does it mean my new employer hasn't sent them my P45.

2. They said they would send a letter to my new employer with my tax code within 10-14 days. I get paid on the 25th - so does that mean I will have a very low salary this month? Will it get sorted by December?

Thanks in advance

1. More likely the old employer hadn't sent in the P45 when HMRC were sending out the tax codes. By the sounds of it your new employer was more on the ball telling HMRC you were a new employee than your old employer telling HMRC you had left.

2. Depends on when your new employer does the payroll run. If they don't get it time for the November run they will have it in time for the December run.

Pennywise

HMRC are notoriously bad at "joining the dots". This is made worse because they are very slow in dealing with information sent to them. A month or two months in dealing with a P45 is common. Even if they've got the P45 from the old employer, a degree of logic has to be applied (which HMRC lacks) to put two and two together.

But you've done the right thing. You've told HMRC. They've agreed to send a revised PAYE code notice. Hopefully it'll get sorted. Give it a couple of weeks and then if you've not received it, phone them again to chase it up. Just because an HMRC call centre worker has told you that they'll do something, doesn't mean that it will actually happen!

A prime example of lack of "joined up thinking" happened last week. We received a revised PAYE tax code for one of our clients. It related to an employment which ceased last year, P45 issued, and for which the PAYE scheme had been closed (letter received from HMRC confirming it had been closed). Heaven knows why they took it upon themselves to reopen it and issue a PAYE code under it!

GreenSaints

Hi All,

Thank you for your replies and, in a weird way, I'm glad it's not just happened to me, but obviously it's not good that it happens all the time!

My tax code has all been changed just in time for pay day - phew! I know it would have sorted itself out the following month, but I go on holiday in a few weeks so need spending money!

My boyfriend also got a letter from the tax office - but they said in his that they think he's unemployed! He changed his job in February but they hadn't updated their system! Maybe they thought I had his job! :P

nomunnofun

GreenSaints wrote: »

Hi All,

Thank you for your replies and, in a weird way, I'm glad it's not just happened to me, but obviously it's not good that it happens all the time!

My tax code has all been changed just in time for pay day - phew! I know it would have sorted itself out the following month, but I go on holiday in a few weeks so need spending money!

My boyfriend also got a letter from the tax office - but they said in his that they think he's unemployed! He changed his job in February but they hadn't updated their system! Maybe they thought I had his job! :P

Excellent - always good to hear how things turned out - especially if positively