Income Tax Under/Over Payments

JCC1286

I'm looking for some advice in relation to adjustments to my 2013/14 tax payments. I was working 2 jobs for about 5 months during this tax period which always seems to screw things up.

In June, I received a calculation from HMRC advising that I had paid too much tax for 2013/14 and that I was due a rebate (happy days!!) Within a month, I had received another letter advising that there had been an error in my last calculation and in actual fact I had underpaid tax for 2013/14.

Due to them sending me a cheque a month previously, my underpayment is now 4x what it would have been if it had been calculated correctly in the first place because they are claiming back the initial rebate.

I very much doubt I have a leg to stand on here but I'd like to know if there is any way to challenge this. I wouldn't have such an issue if they were from 2 different tax years but it simply looks like someone has stuffed up in the first instance and they are trying to recover the costs of their error. Something of which I can't even figure out how they got so wrong in the first place.

I find it quite difficult to understand the breakdowns that they send through and trying to get through to anyone in the HMRC call centres takes a stupidly long time and I'd like to be a bit more clued up on the matter before I contact them.

Any help you guys could offer would be hugely appreciated!

Thanks
J

CLAPTON

JCC1286 wrote: »

I'm looking for some advice in relation to adjustments to my 2013/14 tax payments. I was working 2 jobs for about 5 months during this tax period which always seems to screw things up.

In June, I received a calculation from HMRC advising that I had paid too much tax for 2013/14 and that I was due a rebate (happy days!!) Within a month, I had received another letter advising that there had been an error in my last calculation and in actual fact I had underpaid tax for 2013/14.

Due to them sending me a cheque a month previously, my underpayment is now 4x what it would have been if it had been calculated correctly in the first place because they are claiming back the initial rebate.

I very much doubt I have a leg to stand on here but I'd like to know if there is any way to challenge this. I wouldn't have such an issue if they were from 2 different tax years but it simply looks like someone has stuffed up in the first instance and they are trying to recover the costs of their error. Something of which I can't even figure out how they got so wrong in the first place.

I find it quite difficult to understand the breakdowns that they send through and trying to get through to anyone in the HMRC call centres takes a stupidly long time and I'd like to be a bit more clued up on the matter before I contact them.

Any help you guys could offer would be hugely appreciated!

Thanks
J

a good start would be to determine how much tax you should have paid

if you want to [post up the details of your incomes we could probably work that out for you

JCC1286

Thank you both for responding so quickly!

My tax code for 2013/14 was 625L.

Incomes from that year were as follows:

£17,500 (Apr - Sep '13)
£3,937.44 (approx) (May - Sep '13) - this was a part time 2nd job so the income is a guess based on my 12hr a week contract at minimum wage.
£26,500 (Sep - present)

I have only received a P60 for my current employment which has listed my pay at £13,600 with £2,094 in Tax Deducted.

Hope that's the info you are looking for - this all just goes completely over my head and I usually just take HMRC's word as gospel because I don't understand the calculations :S

CLAPTON

JCC1286 wrote: »

Thank you both for responding so quickly!

My tax code for 2013/14 was 625L.

Incomes from that year were as follows:

£17,500 (Apr - Sep '13)
£3,937.44 (approx) (May - Sep '13) - this was a part time 2nd job so the income is a guess based on my 12hr a week contract at minimum wage.
£26,500 (Sep - present)

I have only received a P60 for my current employment which has listed my pay at £13,600 with £2,094 in Tax Deducted.

Hope that's the info you are looking for - this all just goes completely over my head and I usually just take HMRC's word as gospel because I don't understand the calculations :S

If you have two jobs at the same time then you should have TWO taxcodes
the normal taxcode for 2013-14 was 944L which would normally apply to your 'main ' job
and for the second job (simultaneous) you would normally have a taxcode of BR (meaning 20% on everything)

a. did you get a P45 when you left the job in sept 13?

b. you should have payslips for your part time job showing your earning, tax and your tax code for that job; if you have left it you should have a P45 also.

c. for the job starting in spet, did you give then your P45 from the previous job?

d. you say your taxcode code was 625L : are you sure there is no letter like M1 or wk1 or nocum after the taxcode?

Anatidaephobia

JCC1286 wrote: »

In June, I received a calculation from HMRC advising that I had paid too much tax for 2013/14 and that I was due a rebate (happy days!!) Within a month, I had received another letter advising that there had been an error in my last calculation and in actual fact I had underpaid tax for 2013/14.

Compare the two calculations that you received. The second one (the underpaid one) will likely hold details of a job that was not included in the first calculation.

JCC1286

It is my salary rather than the taxable amount for that period.

I will need to go through old payslips etc for details on the taxcodes and see if I have copies of the P45s.

The tax code in full should be 625L M1 and the likliehood it is that rather than 944L is due to a job I had 2011-2013 where my employer hadn't disclosed to HMRC that I had company cars so the back payments were collected via an adjusted tax code in 2013/14.

I'll have a look for the rest of the info tonight.