Overpaid tax

messi2504

I received 2 months salary in one monthly wage as a result i overpaid tax this happened as when i started work i missed the payroll cut off by 2 days so was paid for 8 weeks wage together.

Will the overpayment be returned in March wages as i was told that HMRC automatically deal with this now?

Thanks

patanne

Did you hand in a P45 when you started or fill in a P46? Is the tax code on your payslip something like 944L or more like 944LM1 or 944LX (this seems most likely)? Do you have another payday before 5th April?

It is now very late in the tax year to get it corrected in your pay & it may be necessary to reclaim after the end of the year from HMRC. It is possible that a quick call to HMRC may get your correct tax code to your employer before your March paydate but it is being a bit hopeful to get it actioned in time.

chrisbur

messi2504 wrote: »

I received 2 months salary in one monthly wage as a result i overpaid tax this happened as when i started work i missed the payroll cut off by 2 days so was paid for 8 weeks wage together.

Will the overpayment be returned in March wages as i was told that HMRC automatically deal with this now?

Thanks

What will happen to your tax will depend on your tax code and basis at the moment. If you have been overtaxed this will eventually be corrected but without knowing your full details cannot say when this will happen. Also you need to check your NI as this is often over-deducted when two wages are paid together and this will not correct itself. To check both tax and NI and get a better idea of what is happening I suggest that you give the full details from your payslip. Gross, tax, NI and week number or date paid, along with tax code and basis (usually follows tax code) plus gross to date, tax paid to date and any previous gross and tax figures showing.

messi2504

My tax code is 944L. I have a pay day in the middle of the month when i was hoping this would be rectified itself.

Basically what has happened is our HR department processed my wage which was for 8 weeks into a monthly wage. Since then my tax has been fine. But i overpaid on the first salary i received.

messi2504

Also as i started work in July come the new financial year i'd actually have earned just under £9000 in the whole 2013/14 financial year. as i'm part time until July. Does that mean because my earnings are under the £9440 personal allowance that all the tax i've paid is returned or does it not work like that?

patanne

If you have earned less than £9k in the whole financial year including JSA & SSP then you should not have been paying any tax with that tax code. It really does look as if they have been applying it on a Month 1 basis. Unless HMRC have sent you a new tax code very recently then with a mid month payday I can't see it being corrected by your employer. HMRC will refund if necessary. With the new real time reporting that is in use now they should be able to check very easily.