HMRC Tax Code Adjustment

graymic

Hey all,

A bit of confusion here. That hoping someone can shed some light on.

So as of May, the company I was involved with went into insolvency and as such everyone was let go. This was not great but was able to pivot quickly and find another job - the last day of employment was 07/04/2017.

Now for that last month I received approximately 20% of my monthly salary which is more than I actually had expected anyway.

Come today, one months salary down in the new job I receive a letter from HMRC stating my tax code for 2017-2018 is now K60X which I've never had before. Outlining a personal allowance of £0 and a "You may pay too little tax of £793.97" - This confuses me quite a bit. My new employer didn't receive my P45 from myself as the liquidators haven't given the release of this until last week. I'm going to bring my P45 into work tomorrow.

The P45 states that as of employment termination dated 07/04/2017 the correct pay to date and the tax code at leaving date to be 1120L.

Can anyone shed any light for me, please? :eek:

Dazed_and_confused

No personal allowance usually only applies when your income goes over £100,000 (£123,000 in the current year) so if that isn't what you're earning then probably best to phone HMRC and get your code corrected.

If your personal allowance is reinstated you likely won't owe the £793 but when there's a change in jobs it's not impossible for some tax to be due, particularly if you were paid by both the old company and new one in the same tax period i.e paid by each company in the tax month to 5 May.

You can probably go onto your personal tax account tonight (on gov.uk) to see what pay details each company has sent to HMRC for you.

xylophone

https://www.gov.uk/tax-codes/numbers-in-your-tax-code-what-they-mean

https://www.gov.uk/personal-tax-account

https://www.gov.uk/claim-redundancy

Contact HMRC if you think that there has been a mistake.

graymic

Hey,

Definitely not earning that amount unfortunately - I actually a very minimal amount for April and one months pay from the new company for May. So something definitely seems off here. Will call them in the morning.

Regards,

Michael

dori2o

If the company is now in the hands of the liquidators then its entirely possible that a P45 (RTI leaver information) has not yet been sent to HMRC, therefore HMRC may well believe you have 2 live employments.

By far the quickest way to review this is to sign up to the Personal Tax Account.

This allows you to see what information HMRC currently hold, allows you to update estimated/actual income details, which will lead to changes in your tax code.

Go to gov.uk and search for Personal Tax Account.