p800 understanding

tygrusia

Hi, I hope I am writing in the correct place. I have recently recived P800 for 2012-2013 telling me that I own over 5ooL
I went through all the all calculation and it looks ok for me but at the end I got: total income Tax due: 0.80 plus tax already refunded: 545,40. Total income tax underpaid: 546,20.
I am not getting where the tax refunded come from. It is the first time I see it. I have not got any letter about tax refunded. Do you think it is a mistake or they sent me a letter that I haven't recived?
Thank

jem16

tygrusia wrote: »

I am not getting where the tax refunded come from. It is the first time I see it.

It could have been paid to you through your wages? Was there anything about tax year 2012/13 that was different - ie change of job?

You would really need to go back over old payslips and if you're still not sure then contact HMRC.

tygrusia

Thank you Jem16. That true I changed my job in September 2012. I have just checked my payslips for the whole year and there is nothing unusual about them. But any way shouldn't they informed me about any overpaid? And what is the point of refunding something and then taking it back? I honestly don’t need that kind of excitement in my life!

jem16

tygrusia wrote: »

Thank you Jem16. That true I changed my job in September 2012.

Did you hand over your P45 to your new employer and did they use the totals and tax code from it?

I have just checked my payslips for the whole year and there is nothing unusual about them.

You may have got the rebate without noticing it. Was the tax paid for one month less than any of the others? Or was there a minus sign next to tax deduction which would indicate a refund?

But any way shouldn't they informed me about any overpaid? And what is the point of refunding something and then taking it back? I honestly don’t need that kind of excitement in my life!

If you did not hand over your P45 and your new employer gave you a personal allowance that you weren't entitled to because you had used some of it in your previous job, then a rebate could have been given that you weren't entitled to. This would only have been discovered later when all the returns were sent to HMRC.

So it really all boils down to what you did when you started your new job.

chrismac1

You need to check that your P45 and p60 from 12-13 stack up to the P800. In my view, and the view of the majority of accountants with small business clients, the rate of blunders from HMRC is currently higher than ever as they have made an almighty mess of the PAYE system upgrade in April 2013.

Examples from my own client base which are the tip of the iceberg in terms of the full volume and range of blunders:

1. Client had company car which ended in May 2013. HMRC still putting it through her tax code.

2. Client had employment redundancy in Aug 2012. Now appears in her tax code for 2014-15.

3. Client had BUPA which ceased in Jan 13 due to change in his job, now appears in his tax code.

These are not strictly P800 issues. But I have dealt with so many P800s in the past 4 years which are just utterly ridiculous that my first thought when one lands on the mat is not "Is there an error?" but "Where is the error?"

tygrusia

Hi Jem 16
Yes, I handed P45 at every time I changed my job. I went again and checked the tax code and it is the same. What is weird is that in 2012 I paid more tax when I was earning less .
I have broken it down:
2010: 11, 563.14 tax:1016.60 code:647L
2011: 12,865.82 tax:1277.20 code: 647L
2012: 1)6198.04 tax:577.8 code:747L
2)7121.15 tax:550.8 code:747L M1
=13,319 tax: 1,128.6
2013:1)6106.10 tax:545.4 code: 810L
2)7654.18 tax: 584.8 code:0810L C
=13,760.23 tax 1,130.2
but what is worried me it is the last year (2014):
1)6194.24 tax:451.4 code: 944L C
2)7629.68 tax:423.40 code: 944L
=13,823.68 tax:874.8
I have been doing traineeship between 2011 and 2013 and now I am on 3 years paid course.
huh what is the point of having all these people doing their work when you have to check everything by yourself..._^_

Thank you for your help guys Especially that I believe you have better things to do on Sunday. I really appreciate that!

zygurat789

tygrusia wrote: »

Hi Jem 16
Yes, I handed P45 at every time I changed my job. I went again and checked the tax code and it is the same. What is weird is that in 2012 I paid more tax when I was earning less .
I have broken it down:
2010: 11, 563.14 tax:1016.60 code:647L
2011: 12,865.82 tax:1277.20 code: 647L
2012: 1)6198.04 tax:577.8 code:747L
2)7121.15 tax:550.8 code:747L M1
=13,319 tax: 1,128.6
2013:1)6106.10 tax:545.4 code: 810L
2)7654.18 tax: 584.8 code:0810L C
=13,760.23 tax 1,130.2
but what is worried me it is the last year (2014):
1)6194.24 tax:451.4 code: 944L C
2)7629.68 tax:423.40 code: 944L
=13,823.68 tax:874.8
I have been doing traineeship between 2011 and 2013 and now I am on 3 years paid course.
huh what is the point of having all these people doing their work when you have to check everything by yourself..._^_

Thank you for your help guys Especially that I believe you have better things to do on Sunday. I really appreciate that!

Apart from a £40 underpayment in 2011/12 those figures are Ok.

jem16

tygrusia wrote: »

2012: 1)6198.04 tax:577.8 code:747L
2)7121.15 tax:550.8 code:747L M1
=13,319 tax: 1,128.6

Are these your figures for tax year 2012/13?

That M1 indicates the emergency tax code which suggests the P45 wasn't used. You should have paid £1168 in tax so you have underpaid here, although only by £40.

Can you provide the P800 figures please?

tygrusia

Yes,
Tax calculation for 2012-13
Income recived (before tax taken off)
Pay from all employments: 13,760
Total income recived: 13,760
minus: Personal allowance: 8,105
Total income on which tax is due: 5,655
How I have worked out your Income Tax:
Pay, pensio, profit etc. 5,655/5,655 @20% = 1,1331.00
Income tax charged: 1,131.00
minus: Tax deducted (from all employments, UK pensions and state benefits): 1,130.20
Total tax deducted: 1,130.20
Total income tax due: 0.80
plus Tax already refunded: 545.40
Total Income Tax Underpaid: 546.20

Thank you again. Do I undestand correctly that tax is 20% of taxable pay?

jem16

tygrusia wrote: »

Yes,

Not according to the calculation below.

However they do seem to match these figures.

2013:1)6106.10 tax:545.4 code: 810L
2)7654.18 tax: 584.8 code:0810L C
=13,760.23 tax 1,130.2

Tax calculation for 2012-13
Income recived (before tax taken off)
Pay from all employments: 13,760
Total income recived: 13,760
minus: Personal allowance: 8,105
Total income on which tax is due: 5,655
How I have worked out your Income Tax:
Pay, pensio, profit etc. 5,655/5,655 @20% = 1,1331.00
Income tax charged: 1,131.00
minus: Tax deducted (from all employments, UK pensions and state benefits): 1,130.20
Total tax deducted: 1,130.20
Total income tax due: 0.80

Ok so far so good and agrees with your figures starting 2013.

plus Tax already refunded: 545.40

This is the bit you need to clarify with HMRC. Where does this refund come from and how/when did you get it?

Thank you again. Do I undestand correctly that tax is 20% of taxable pay?

Yes it is. The initial figures are fine. I doubt they would worry about 80p.

I suggest you phone HMRC and find about that rebate.

tygrusia

Thank you! I will call them on Tuesday and let you know what is going on

Yes it is. The initial figures are fine. I doubt they would worry about 80p.
Well 80p here but when you multiplay it with 1000people

Thank again.