Unexpected tax rebate in wages?

Knuckle89

Hi all

So my situation:
Recently left a salaried job
Got a letter from hmrc saying I'd overpaid circa 30 quid and sent a cheque, fine.

Started new job as a contractor (paye) . I'd calculated on a tax calculator my take home and I've been getting the right amount however on my third week I've got paid £280 more than the previous 2 weeks and the difference is in the tax field, that being a positive rather than a deduction.

So a few questions.:
-is it normal to get both a cheque and money back from employer?
- is it possible to get reimbursed by employer B when realistically it's employer A where the discrepancy lies
-my tax codes on my 3 payslips (weekly) are 1054L, 1060L and on the big payment 1046L.what is going on here!?

First time this has happened to me so just a bit concerned I am not due the reimbursement and for obvious reasons don't want to ask my employer at this stage.

Any help greatly appreciated.

dzug1

Could the cheque be for the last tax year - ie unconnected with your change of job?


Not only possible but normal


Do any of those tax codes have month 1 or cumulative or non-cumulative appended?


Your employer has no choice but to apply the tax code supplied by HMRC - either directly or through your P45. What is probably going on is that your (new) employer is catching up with your correct tax code but there isn't enough information there to tell

Knuckle89

You're right the letter is for 14-15 year, so you think the amendment must have been an error in calculation for April 2015 onwards?

As far as I'm aware I've been on the right tax code. The only main things that have recently are that I had a cycle to work bike for like 2 months and had to pay off the balance in full our of my last 2 pay checks (got paid weekly before too) and I also had some days off in between unpaid but other than that I'm a bit lost as to why im owed it. Not that I'm complaining.

So my employer would have had some sort of instruction from hmrc?

chrisbur

If you want this checking you have to give full details.
Pay tax and tax code details from P45 or last patslip in old job and same for each payslip in new job plus from payslips taxable pay to date and tax paid to date.

Knuckle89

Will see what I can do later to try work this out. Cheers

dzug1

When an employer takes you on they have standing procedures from HMRC to determine your tax code - which will normally be on some form of week 1 non cumulative basis - loosely referred to as emergency tax


Assuming you gave them a P45 from your previous employer they will use the tax code and pay/tax totals stated in this - but it may not kick in the first week. When it does there may well be a refund if the week 1 basis resulted in an overpayment.


What's slightly puzzling in your case is 3 tax codes rather than 2. They can't all be right if your circumstances really remained unchanged.


Have you had notification from HMRC yourself for any of them?

Knuckle89

No notification from Hmrc. I don't believe I have paid too much tax for my new job. It's basically 130 per day which works out at circa 500 after tax on tax calculators, which is what I've got the first 2 weeks. So I can only assume it's to do with my last job between April and August when I left.

So logistically my new company would pay me more and Hmrc less so they aren't out of pocket?

CLAPTON

Knuckle89 wrote: »

No notification from Hmrc. I don't believe I have paid too much tax for my new job. It's basically 130 per day which works out at circa 500 after tax on tax calculators, which is what I've got the first 2 weeks. So I can only assume it's to do with my last job between April and August when I left.

So logistically my new company would pay me more and Hmrc less so they aren't out of pocket?

only facts and figures can really help


what does your P45 say : total earning, total tax taxcode

what does your last payslip say : total earning to date, total tax to date, tax code


would be a good start

Knuckle89

Ok this is weird.
New job:
Payslip 1 tax to date £88 (not right obviously)

Payslip 2 tax to date £1412.40

Payslip 3 tax to date £nil

jem16

Knuckle89 wrote: »

Ok this is weird.
New job:
Payslip 1 tax to date £88 (not right obviously)

Payslip 2 tax to date £1412.40

Payslip 3 tax to date £nil

Without all the other figures, such as taxable pay to date the above tax paid figures are meaningless.

You need to give all the figures from each of the 3 payslips.

dzug1

Knuckle89 wrote: »

So logistically my new company would pay me more and Hmrc less so they aren't out of pocket?

No. Your new company will pay you your due salary, no more and no less. They then act as agent for HMRC in making tax deductions or making refunds using your tax code at the time of the payroll run. They will never be out of pocket on tax.