100% Taxed

nuttyslack2012

Hi all.

Can anyone help

I should have been paid on 29th Nov, but wasnt as my manager said my tax code was wrong and they stopped all my wages. I had a letter saying my tax code had changed as I have 2 jobs one is 444T the other 500L, I have contacted HMRC but they didnt know why I had all my wages stopped, so they are issuing the tax codes again. Surely an employer cant tax you 100%. The tax office did say I should get it all back.

anamenottaken

nuttyslack2012 wrote: »

Hi all.

Can anyone help

I should have been paid on 29th Nov, but wasnt as my manager said my tax code was wrong and they stopped all my wages. I had a letter saying my tax code had changed as I have 2 jobs one is 444T the other 500L, I have contacted HMRC but they didnt know why I had all my wages stopped, so they are issuing the tax codes again. Surely an employer cant tax you 100%. The tax office did say I should get it all back.

If your tax code (and hence tax free element of your pay) was lowered so much that you needed to deduct tax (on the cumulative basis) at 100% of that period's pay then that is what should happen.

nuttyslack2012

thanks for the reply.

Laurajo_2

I didn't think it was possible for a PAYE code to collect more than 50 percent of your income through your tax code?

Also, based on your current codes, you wouldn't have been taxed at 100 percent.

I think your employer has either misunderstood something or is stringing you along.

Approximately how much are you earning in your two jobs?

jem16

nuttyslack2012 wrote: »

I have contacted HMRC but they didnt know why I had all my wages stopped, so they are issuing the tax codes again. Surely an employer cant tax you 100%. The tax office did say I should get it all back.

HMRC would not normally issue a tax code that would see more than 50% being paid in tax. In this situation they would normally issue a tax code on a non-cumulative basis so that the correct tax is taken for each month following the change, but wouldn't take the whole underpayment in one payment.

To protect you from paying unreasonable tax deductions you won't be able to pay back the tax you owe through your tax code in the following circumstances:
• you don’t have enough PAYE income to enable HMRC to collect it
• you would pay more than 50 per cent of your PAYE income in tax
• you would end up paying more than twice as much tax as you normally do each time you receive your pay or pension

HMRC seem to agree with this in what you were told so it's possible your employer didn't use the tax code correctly.

The underpaid tax would have to be collected eventually but it's usually done in a future tax year by spreading the underpayment over 12 months.

nuttyslack2012

Laurajo wrote: »

I didn't think it was possible for a PAYE code to collect more than 50 percent of your income through your tax code?

Also, based on your current codes, you wouldn't have been taxed at 100 percent.

I think your employer has either misunderstood something or is stringing you along.

Approximately how much are you earning in your two jobs?

around £11000 for both jobs

nuttyslack2012

jem16 wrote: »

HMRC would not normally issue a tax code that would see more than 50% being paid in tax. In this situation they would normally issue a tax code on a non-cumulative basis so that the correct tax is taken for each month following the change, but wouldn't take the whole underpayment in one payment.



HMRC seem to agree with this in what you were told so it's possible your employer didn't use the tax code correctly.

The underpaid tax would have to be collected eventually but it's usually done in a future tax year by spreading the underpayment over 12 months.

thanks for the information, I agree that my employer must have used the tax code incorrectly. I didnt think that the taxman would take all my pay in tax.

theoretica

Did your employer use the tax code wrongly, or did they just get in a muddle and decide not to pay you until it was sorted out?

maninthestreet

Have you received a payslip for November from your employer??

nuttyslack2012

Hopefully should get a payslip this week. Yep I think they used the tax code wrong but they were adamant that it wasnt their fault.

nuttyslack2012

spoke to payroll today instead of going through my manager they said my tax code was wrong and should have said 500l wk 1 instead of 500l I have told them no money next time I am not working as I dont work for free