Employer is not updating my tax code

Dsmith5991

Hi guys,

I'm new to the forum, and was wondering if I would be able to get some advice

So... This all started at the end of the 15/16 tax year, I got sent a tax code which was wrong, it would lead to me paying too much tax, however I never got round to changing it before the new tax year started. I phoned in early April to get it changed (I shouldn't actually be paying any tax just now). I received the letter from HMRC confirming that my tax code had indeed been updated. All good so far!

But my payslips keep coming in each week still with the old tax code. I have phoned HMRC countless times. First of all, they confirmed they had sent out the new tax code to my employer already, but they sent it again for me (and a further 4 times). Still no change in tax code or tax refund! So I ask the payroll department at my employer, who say that HMRC are just sending them blank tax codes which they cannot use. I asked them to phone HMRC to confirm my new tax code but they won't due to 'confidentiality'.

There are also no fax machines in our payroll department, so that rules out that option too.

I have been going back and forth between my employer and HMRC for 2 months now, meanwhile I'm losing money each week. I'm a student on a work placement so am relying on this money which is now greatly reduced.

It seems to me that it should be my employer's responsibility to get the new tax code now that I've raised it as an issue, but they seem unwilling to help.

Does anyone know what I can do to get my earnings back? Has anyone heard of HMRC issuing blank tax codes to employers?

Thanks in advance, I realise I have written quite an essay.

agrinnall

Has your employer provided you with anything to support what they're telling you? It sounds unlikely that HMRC would send a blank tax code but if they have it would be easier for you to complain if you can tell them exactly what your employer has received. It seems more likely that your employer is making a mess of things. The good news is that even if they never sort it out you can at least recover the overpaid tax from HMRC in April 2017.

Dsmith5991

Hi, thanks for answering so quickly. I've been sent a screenshot of the payroll system and a blank space in the box that says 'tax code'. I agree, I doubt HMRC would repeatedly sent blank codes upwards of 5 times!

And yes, I can claim it back, but am I not losing out on bank interest?

xylophone

Make a formal written complaint to HMRC and send it signed for.


"When you contact HMRC please give them as much information as you can to help them understand and investigate your complaint, including:

your full name, address and contact telephone number
your reference number (for example your National Insurance number, tax reference, VAT registration number or employer reference)
what went wrong
when it happened
who you dealt with
what effect HMRC’s actions had on you
how you’d like HMRC to resolve the matter "

PAYE and Self Assessment Complaints
HM Revenue and Customs
BX9 1AB
United Kingdom

agrinnall

Dsmith5991 wrote: »

...but am I not losing out on bank interest?

Yes, but given the current level of interest rates that might be wiped out by the cost of buying a stamp to send in your complaint letter!

I still think it's more likely to be a problem with your employer's processing of what they receive from HMRC, but it probably won't hurt to approach the issue from both ends.

spadoosh

Your tax code is between you and HMRC. Your employer (should) simply acts on instruction from HMRC, they can not ammend your tax code from what you tell them.

Ive known it take upto 6 weeks for us to recieve a tax code change. Although the correspondence goes directly to the accountant who then forwards it to us.

Sounds like you might be complicating the situation by getting too involved, tax issues normally sort themselves out pretty quickly now but having rung several times and had several changes sent naturally it could confuse things.

Having said that, ask your employer what tax code they have on record for you and ask for the last correspondence they recieved from HMRC regarding your tax code. They should keep this on file.

You can request a payment from HMRC if they agree you have overpaid tax.

With regards to the interest, if you are relying on the money, surely it would be spent and as such you wouldnt earn interest. You can try and make a claim for any incurred costs but you would have to either prove HMRC failings or the your employer didnt act on instruction from HMRC.

Just to reitterate, it is not your employer's responsibility to chase up your tax code, it is between you and HMRC. All they have to do is act on instruction and there is nothing for them to gain by not doing so. It could be admin errors but would have expected this to be rectified as soon as you started asking questions to them.

Kiwi_g

I receive an annuity taxed with a BR tax code which was correct for last tax year. It's now a K tax code. I'm not able to speak the annuity payers back-office but they have written confirming the BR tax code for the current tax year. HMRC tell me that they've issued K tax codes many times (the codes keep changing for various reasons). HMRC have also confirmed that the RTI information from the annuity payer uses the BR (i.e. wrong) tax code. Has anyone got any suggestions as to what I can do so that I pay the correct tax on the annuity?

xylophone

See 4 above.