Moved jobs, new income tax bracket

vaderag

I have just moved jobs and because of a crossover in payments (I work in sales so I had commission off my last job), HMRC have written to me saying they expect me to earn more and have therefore moved me into the next tax bracket.

I can say definitively that I will not earn that much, but is this something I can tell to HMRC or do I need to wait until April and claim it back?

Thanks

nomunnofun

vaderag wrote: »

I have just moved jobs and because of a crossover in payments (I work in sales so I had commission off my last job), HMRC have written to me saying they expect me to earn more and have therefore moved me into the next tax bracket.

I can say definitively that I will not earn that much, but is this something I can tell to HMRC or do I need to wait until April and claim it back?

Thanks

Can you clarify what exactly HMRC has said? - I have never come across the phrase 'moved me into the next tax bracket'. How much will you be earning?

vaderag

Well, I had a letter called PAYE Coding Notice saying that "Your new tax code from 6 April 2013 to 5 April 2014 is 742T" which it states further down is because they expect me to earn in excess on 100k. Which is totally not going to happen!!

nomunnofun

vaderag wrote: »

Well, I had a letter called PAYE Coding Notice saying that "Your new tax code from 6 April 2013 to 5 April 2014 is 742T" which it states further down is because they expect me to earn in excess on 100k. Which is totally not going to happen!!

You need to telephone them, and soon!

1) The suffix 'T' could suggest that HMRC believe that you have two jobs - perhaps old job has not informed them.

2) Because you have two jobs (??) HMRC suspect that your earnings exceed £100000 (is this likely in that event?)

Basically, if you have one job, have no job related benefits, no issues regarding HMRC underpayments and earn less that £100k, your code should be 944L. Ask HMRC if they have your P45 from the old job and to apply it. If they do not insist upon a code 944L M1 being issued.

vaderag

Okay, thanks. The problem might be that they had the P45 from the old job, but then I had a commission payment after this... would that cause that?

nomunnofun

vaderag wrote: »

Okay, thanks. The problem might be that they had the P45 from the old job, but then I had a commission payment after this... would that cause that?

Possibly - if twelve months salry from EACH job plus your commission comes to more than £100k. The point is - it looks like HMRC have received notification of your new job before receiving your P45 details from your old job. The assumption always seems to be that employees do not move from one job to another but simply take on another job! Logic and common sense do not appear to play a part.

vaderag

Too right - just called and it seems that may be what they have done (how many people work 2 30k+ jobs?!!?

They have put me back on 944L and said that my employer should refund the excess payments through PAYE... (fingers crossed!)

Thanks for your help!

nomunnofun

vaderag wrote: »

Too right - just called and it seems that may be what they have done (how many people work 2 30k+ jobs?!!?

They have put me back on 944L and said that my employer should refund the excess payments through PAYE... (fingers crossed!)

Thanks for your help!

No problem -That was quick! Do you have a direct line?

vaderag

Lol - no - just the number on the letter!

Prothet_of_Doom

He phoned just before the lunch time rush, when all the clients phone up and all the staff go to lunch.