Employer or HMRC?

Fork

I had a letter from HMRC back in February saying that my new tax code for this year would be 1000L from April 2014. I called them at the time to confirm that this would be the correct tax code for the amount I earn. 3 payslips down the line and my payslip still says I'm on tax code 645L and I'm taking home just over £70 less each month than what I would be taking if the tax code on my payslip was 1000L.

I thought maybe it might just take a couple of months to kick in, but I suspect it shouldn't take this long.

Do I need to contact HMRC about this or is it my employer's error?

CLAPTON

Fork wrote: »

I had a letter from HMRC back in February saying that my new tax code for this year would be 1000L from April 2014. I called them at the time to confirm that this would be the correct tax code for the amount I earn. 3 payslips down the line and my payslip still says I'm on tax code 645L and I'm taking home just over £70 less each month than what I would be taking if the tax code on my payslip was 1000L.

I thought maybe it might just take a couple of months to kick in, but I suspect it shouldn't take this long.

Do I need to contact HMRC about this or is it my employer's error?

probably your emplyers error but they will probably claim they didn't receive the notification from HMRC

phone your employer first and then phone HMRC

SeduLOUs

Ask your employer, and then check with HMRC again what you should be on.

Tax notification codes usually get sent to employer and cannot be ignored, but perhaps they never received it and need to be sent another one. I doubt anyone is at 'fault' but you need to check with both to find out what has actually happened and whether your tax code is actually incorrect at the moment.

Delphina

I am guessing that you only have one job and no benefits in kind...

I am told that if it is a usual code such as yours (ie full Personal Allowance given with no deductions), employer will not get paper Tax Coding Notice, but receives some kind of updates in their online system instead. Chances are, based on your info, your employer uses the wrong code.

Please ask Payroll to check. If they do not know what the correct code should be, they can call HMRC to confirm code without you having to do it for them. They can even update your tax code for you on your behalf. But they cannot ask how the tax code is made up.

As soon as your employer uses the right code on cumulative basis, you should get your tax refund backdated to April this year through your wages all in one go.

agrinnall

blondebubbles wrote: »

Any idea why it was 645L before?

I think this is the key. 645L is a long way from last year's standard tax code, so a change to 1000L this year either means that whatever caused the previous reduction has now been satisfied, or it's a mistake.

Fork

blondebubbles wrote: »

Any idea why it was 645L before?

No idea. I think that's where the problem lies - I suspect they've simply tapped in the wrong code.

Thanks for all your help folks!

xylophone

Have a look at this http://www.hmrc.gov.uk/rates/it.htm

You will note that the standard personal allowance for the tax year 2013-14 was £9440- this would have meant a standard tax code of 944L- it seems that yours was 645L- were you issued with a Notice of Coding last tax year to explain why?

The standard personal allowance for the current tax year is £10000 and your Notice of Coding for the current tax year is 1000L - presumably then the deduction that applied in the last tax year to reduce your personal allowance no longer applies?