Underpayment of Tax

BeckyAP

Hi all,

Just looking for a bit of clarification around how I've underpaid some tax.
During the 15/16 tax year, I worked at three different employers - all separate with no overlap of work.
However, when I checked my pay slip today, my tax code has gone down to 972L.
When I queried this, the HMRC adviser explained that I had received my personal allowance more than once.
Surely as each job was separate to another and I never worked two jobs at the same time, my personal allowance could be taken into account for each one?

Or, most probably, am I really missing the mark?

00ec25

by implication from what you say it comes down to what did you do with your P45 when you started jobs 2 and 3?

if job 2 and/or 3 put you on the normal full tax code because they were unaware that you had previously worked that work year then yes you will have underpaid tax because you got too much allowance

similarly if you have claimed any expenses in jobs 1 & 2 which had been incorporated into your tax code, but you were not entitled to those expenses on jobs 2 and/.or 3 your would again have received too much allowance and thus underpaid tax

we are guessing unless you you provide more details of the tax codes used by each job and whether you handed in your P45s

BeckyAP

Just doing some digging whilst at work I've found these tax codes
Job 1 (left in Sep '15) currently unknown
Job 2 (left in Jan '16) 1060L
Tax Code taken from 15/16 P60 for Job 3 - 1060L
Because those two codes are the same, is that the problem?

I do remember there being a problem getting my P45 from job 2 - he said his accountant posted it to me which I never received and instead emailed me a 1 page document with details about earnings/tax paid etc.
I handed this in at Job 3 so perhaps that could be the/another issue!

molerat

Without a P45 there is a fair probability you were given the tax free allowance for the changeover month twice which would be about £183 tax underpaid at 20%, more if a 40% tax payer.

BeckyAP

When I rang today, the adviser said it was about £300 odd - I have asked for this in writing as I hadn't received any notification of it.
If my previous employer/s haven't actioned a P45 correctly, is there anything I can do about it retrospectively?

sheramber

What is relevant is what tax month was used by each employer when you finished and started.

e'g if you were paid up to the middle of month 6 by one employer but were paid for the last two weeks of that month by the new employer who also used month 6 without including your previous pay and tax information from the previous employer you would be given your personal allowance twice, resulting in an underpayment.

BeckyAP

Sheramber, I think you've nailed it there. I probably didn't leave in line with pay/tax months so I've probably crossed wires with the changes.
I then didn't realise that my tax code hadn't been adjusted.

Thanks for the help guys - least I'm more informed for next time!

molerat

That is why a correctly completed P45 is so important to hand to a new employer. The last pay week / month is one of the pieces of information on it which should prevent the allowance being used twice.