Overtaxed please help

mikegrainger

I have been taxed 40% on my £1300 worth of shares

My ex employer says that it is because I received such a high amount in one week that I was taxed this much

HMRC say that they cannot do anything until the end of the tax year when they come to assess my earnings

What are my rights here and what can I do? I dont feel like I should have to pay 20% extra tax and have to wait for a rebate to get it back

dano17439

If you are on a culmative tax code then you will get the overpayment back in your salary (presuming you earn under the higher rate threshold in the year)

purdyoaten

dano17439 wrote: »

If you are on a culmative tax code then you will get the overpayment back in your salary (presuming you earn under the higher rate threshold in the year)

I would be doubtful. The only way that the op could pay tax at 40% on all of the additional money would be if he was already higher rate according to the tax tables - we are at week 42 or so of the tax year and one would have expected at least part of the additional pay at 20%.

It appears more likely that the op is on a week 1 code. Perhaps it could be clarified as to the code currently operated.

mikegrainger

apparently they have taxed me on at 'OT' tax code because I no longer work there.

They have added that to a weekly payslip (that is how i used to get paid) so they have taxed me based upon that amount being my income every week. but I believe they should of payed me at the end of the month then it would of been normal tax if you know what I mean

zygurat789

mikegrainger wrote: »

apparently they have taxed me on at 'OT' tax code because I no longer work there.

They have added that to a weekly payslip (that is how i used to get paid) so they have taxed me based upon that amount being my income every week. but I believe they should of payed me at the end of the month then it would of been normal tax if you know what I mean

Presumeably you are now working elsewhere and all your allowances are given against that income so 0T would be correct.
This means that all your income is all taxed at 20% & 40% respectively.
It would make no difference when you were paid and this is more likely to underdeduct than over deduct tax.

mikegrainger

My annual income is only around £12,000 though, so I cant see how 40% would be a viable amount to tax me unless they had use a weekly code like purdyoaten said instead of monthly code which they should of done ( and how they told me previously how it work work)

Dave_the_Ginger_Cat

HMRC are right, you'll have to wait until the end of the tax year. From what you write, I think your former employer has taxed you correctly based on current rules, and it's only about 10 weeks until the end of the tax year

McKneff

It amazes me how little people in general understand the basic tax and NI system.


I am a pensioner now but if someone was taking a few hundred pounds out of my salary every I would want to make sure from the start that they were taking the correct amount.

zygurat789

McKneff wrote: »

It amazes me how little people in general understand the basic tax and NI system.


I am a pensioner now but if someone was taking a few hundred pounds out of my salary every I would want to make sure from the start that they were taking the correct amount.

Do you also check your
Council tax banding
Electricity tariff
Gas tariff
Phone tariff
etc

p00hsticks

McKneff wrote: »

It amazes me how little people in general understand the basic tax and NI system.

I am a pensioner now but if someone was taking a few hundred pounds out of my salary every I would want to make sure from the start that they were taking the correct amount.

IMHO, this is a bit unfair on the OP - it sounds from what they say that this was a one off payment from an ex-employer from some sort of share save or bonus scheme, not something that has been happening on a regular basis.

mikegrainger

Yes you are correct poohsticks

No one needs your negative input on the forum McKneff