Tax is now nearly triple last month's - Help

hoyteam

Last month I started a new job and paid £305 in Tax based on code 845M. My tax free amount is reduced due to an overpayment the previous year. This month I paid £823 in tax based on Tax code 1005M!

I think my tax free allowance went up because I applied for the marriage allowance (my partner is a low income earner.) I was expecting my tax to go down!

I contacted my company's pay advice and they said to contact HMRC. I contacted HMRC and, quite honestly, found it difficult to follow what they were saying. They seem to think it has happened because someone didn't pass along my P45. They adjusted my tax code but said they couldn't confirm if I had paid the right tax until the end of the tax year.

My salary is significantly down this month. Can this be right:(?

martinsurrey

give us numbers please

we need the total salary and tax paid in the old job and the salary and tax paid in each of the months in the new job (just income tax, not National insurance.

hoyteam

Total pay for the last job (This must be beginning of the tax year until I left at the end of August) was £8553 and the total tax for the same period was £1005. Tax code at leaving was 845M.

Gross salary for September was £2,439 and I paid £305 in Tax (on code 845M.)

Gross salary for October was £2,439 and I paid £823 in Tax (on code 1005M.)

Any advice is very much appreciated...

chrisbur

hoyteam wrote: »

Total pay for the last job (This must be beginning of the tax year until I left at the end of August) was £8553 and the total tax for the same period was £1005. Tax code at leaving was 845M.

Gross salary for September was £2,439 and I paid £305 in Tax (on code 845M.)

Gross salary for October was £2,439 and I paid £823 in Tax (on code 1005M.)

Any advice is very much appreciated...

Your figures for your old job would suggest that the P45 was issued for month 5 can you confirm if this is correct?
The September wage appears to have been calculated on the emergency tax code can you check the payslip to confirm if it does say 845M?
For the two payslips can you give all details from the payslips, hopefully they will have something after the tax code eg X non-cumulative 1 0 cumulative anything like this and also figures for gross to date and tax paid to date.

Pennywise

What month number is shown on your final payslip from the old employer. It could be that you've had two separate monthly personal allowances applied to each job for month 6, because two employers in the same month, which is then corrected for in month 7, October. Without knowing the "to date" pay and tax figures on all Aug/Sept/October payslips, we're working blind here.

CKhalvashi

Pennywise wrote: »

What month number is shown on your final payslip from the old employer. It could be that you've had two separate monthly personal allowances applied to each job for month 6, because two employers in the same month, which is then corrected for in month 7, October. Without knowing the "to date" pay and tax figures on all Aug/Sept/October payslips, we're working blind here.

From what OP has said, to date is £13431.

I have no idea how the HMRC computer works, so I'll leave it to you guys

hoyteam

Yes, just looked at the P45 and it was issued for month 5.

I double checked the payslip for end of September and it does indeed say 845M.

The remaining information related to tax for September is 845M / 0. For the end of October it is 1005M / 0.

Totals 'to date' for August are Gross Pay £9,237 and tax paid £1005. This was from my previous employer. My current employer has issued a payslip which reads as follows...

Totals to date for Sept. are Gross Taxable pay Year to Date £19,335 and tax paid YTD £2,316.

For October Gross taxable pay Year to Date was £21,565 and tax paid YTD £3,139

Hope that clears things up a little.

chrisbur

hoyteam wrote: »

Yes, just looked at the P45 and it was issued for month 5.

I double checked the payslip for end of September and it does indeed say 845M.

The remaining information related to tax for September is 845M / 0. For the end of October it is 1005M / 0.

Totals 'to date' for August are Gross Pay £9,237 and tax paid £1005. This was from my previous employer. My current employer has issued a payslip which reads as follows...

Totals to date for Sept. are Gross Taxable pay Year to Date £19,335 and tax paid YTD £2,316.

For October Gross taxable pay Year to Date was £21,565 and tax paid YTD £3,139

Hope that clears things up a little.

Have not checked these figures just yet but the thing that sticks out is you have for Sept taxable year to date £19335 but so far we have only £8553 P45 and £2439 first month's salary accounted for which comes to £10992 leaving £8343 unaccounted for.
You advise £9237 from old employer but £8553 on P45 is this because one is taxable and one total eg pension difference.
Main question did you have any other taxable income that would account for this difference?

hoyteam

I thought this was strange as I was typing the post. I assumed it should be how much I earned from April (the beginning of the tax year)?

I did not have any other taxable income.

chrisbur

Have had a look at the figures for Sept, the tax code as you say is shown as 845M but this was certainly not what was used to calculate the tax. If it had been used tax would have been over £700 higher.

It appears to me that somehow extra figures have been added I would guess something along the lines of the P45 being put through twice ( tax is exactly doubled but gross not exactly ) This produced a high tax figure for the month which someone then manually adjusted.
The following month the high tax figure was not adjusted.

This is pure speculation at the moment until you confirm that there was no other gross/tax figures to be added, and clarify the gross figure for last employment as asked for in last reply.

Some payslips have previous pay and previous tax columns on them, does yours and if so what are the figures.

hoyteam

Ok, the £8553 pay to date is what is listed on my P45. My final payslip with my previous employer has gross pay to date down as £9,237. This is lisetd under period ending 31/08/2015. The taxable pay to go along with that was £8553 YTD.

My annual salary was around 22,000 and now it's 28,000.