Underpaid tax

Consigliarikbo

Hi,

I have a question about tax and tax codes.

I have recently moved jobs and it turns out that last month my previous employer hadn't paid all my tax so my new employer took a large hefty amount this month to top up and bring my tax up to date.

Since them my former employer has paid me out for holiday I didn't use, but didn't use my existing tax code (1060l) instead using 0t, which only worked out the basic rate of tax and not 40% which I am also in so believe my tax for the year is again not right.

My question is will this be aligned by my current employer either this month or next or as it's on different tax codes will it not be aligned until the end of the year.

Also is my employer likely to take this as one large lump sum to align it or can i do anything so they average it out over this month and next month?

Thanks.

Guest101

Speak to payroll


Payments can (and should where appropriate) be spread across multiple pay days.

Darksparkle

0T is the appropriate code for your previous employer to use when paying you after you have left.

Consigliarikbo

Thanks for the responses.
Guest101 - I will try speaking to them. It would have been good to know that last month as they just took a several hundred ££'s more with no notice, splitting over three months would have made things much easier for me, but I guess it's done now.

Darksparkle - good to know, i'm not blaming my previous employer. Just trying to work out when the underpayment will be taken.

A friend of mine seemed to think that the two probably wont be aligned and it will just result in a new tax code next year reducing my tax free allowance?

Darksparkle

Personally I'd just call HMRC and ask them.

McKneff

Your employers dont just decide on a certain amount and then just take it.
It is all governed by HMRC

Consigliarikbo

McKneff wrote: »

Your employers dont just decide on a certain amount and then just take it.
It is all governed by HMRC

I didn't suggest they did.

I get that it is defined by them, it was more if it is going to be caimed this tax year due to the two separate codes and if not does the expected difference have to e taken as a lump or can it be averaged out over the remaining two months in the year.