Keep Paying Tax On Earnings

claimback

I have an annoying problem in that i keep paying tax on my earnings even that i know i don't owe any!
I've been unemployed or working part time for most of the year, and i'm in no way getting slose to the tax 'threshold' of £10600. When i rang HMRC they confirmed this i agreed that my tax code 1060 was correct! What happens the first itime i get paid after speaking to them? Yeah i get taxed! I rang them again and agred on my 'cumulative' tax code, when happens again? They even wrote a very nice letter eplaiming how they calculated my code! Well it's a pity they can't calculate how much they owe me in the same manner!
I know it's only £35 or £45 each time but it all adds up.
Is there any fixed address i can write to them about claiming tax back? All i have is a return address with a PO Box.
I don't think they realise how anoying it is to see them gobbing off on the TV about how you can earn £10600 before you start paying anything, but as soon as you work they have one hand in your pocket.

jem16

claimback wrote: »

I don't think they realise how anoying it is to see them gobbing off on the TV about how you can earn £10600 before you start paying anything, but as soon as you work they have one hand in your pocket.

Never seen that on TV. However your interpretation of it is wrong.

You don't pay no tax and then suddenly start paying tax when you earn £10,600. Your allowance is split into 12 equal parts ( if paid monthly ), so each month you get £883 tax free. If you earn more than this each month you may get taxed.

However tax is all about the detail and without that we can't really help you much further. If you have a cumulative tax code your tax will be correct over the course of the year as if you earn much more in one month and pay tax it will be paid back the next month as it recalculates.

So you may not have had a cumulative tax code before and each month was looked at in isolation. Now that you have a cumulative tax code any rebate due will be automatically paid back when it's first used.

Lokolo

You also pay National Insurance, which is different from Income Tax. You pay 12% national insurance on any earnings above £155 a week. This has no impact on your personal allowance.

laticsforlife

The only 'annoying problem' I can see is how little detail you actually bother to provide so this forum can accurately say how much (or little) tax you ought to be paying.


How much taxable benefit have you earned to date
How much part time income have you earned to date


Why are you blaming HMRC for calculating the tax wrong, surely it's either your employer or DWP who are deducting this based on it either being correct or them doing it wrong; you've already had it confirmed that HMRC has issued you with the correct code so have done nothing wrong there.


You're blaming the wrong people.

chrisbur

claimback wrote: »

I have an annoying problem in that i keep paying tax on my earnings even that i know i don't owe any!
I've been unemployed or working part time for most of the year, and i'm in no way getting slose to the tax 'threshold' of £10600. When i rang HMRC they confirmed this i agreed that my tax code 1060 was correct! What happens the first itime i get paid after speaking to them? Yeah i get taxed! I rang them again and agred on my 'cumulative' tax code, when happens again? They even wrote a very nice letter eplaiming how they calculated my code! Well it's a pity they can't calculate how much they owe me in the same manner!
I know it's only £35 or £45 each time but it all adds up.
Is there any fixed address i can write to them about claiming tax back? All i have is a return address with a PO Box.
I don't think they realise how anoying it is to see them gobbing off on the TV about how you can earn £10600 before you start paying anything, but as soon as you work they have one hand in your pocket.

If you really want to understand what is happening and check if there is anything wrong you need to give the following details from your last payslip....
Taxable gross, tax paid, national insurance paid, tax code, tax basis (usually shows after tax code), week or month number, taxable gross to date and tax paid to date.