Paying too much tax in two weeks wages

cherry76

Phoned income tax cs this morning and asked why I am paying £254.75 income tax for. 2 weeks wages.Usually pay approx £75 a week tax. I forgot to submiti my time sheet for one week and had to submit two in one week. Does this make sense he told the two separate weeks wages have been counted as one and therefore am paying tax at 40%. I thought since I received my P 800 and owe them £228 may be they are already deducted the money. He said any money owes will be taken from April 2019. This has nothing to do with P800 I am classified as a higher earner that week Strange enough my tax has now been changed to 10367. He was not very helpful and said he cannot do anything about it. It does not make sense to me is this possible! Going in circles not sure what to do now. Thanks

antrobus

cherry76 wrote: »

Phoned income tax cs this morning and asked why I am paying £254.75 income tax for. 2 weeks wages.Usually pay approx £75 a week tax. I forgot to submiti my time sheet for one week and had to submit two in one week. Does this make sense he told the two separate weeks wages have been counted as one and therefore am paying tax at 40%....

Yes, that's the way PAYE works.

cherry76 wrote: »

...
I thought since I received my P 800 and owe them £228 may be they are already deducted the money. He said any money owes will be taken from April 2019. This has nothing to do with P800 I am classified as a higher earner that week Strange enough my tax has now been changed to 10367. He was not very helpful and said he cannot do anything about it. It does not make sense to me is this possible! Going in circles not sure what to do now. Thanks

Your P800 will be for the 2016/17 tax year. Apparently you owe them £228. They are going to collect it through your tax code in the 2018/19 tax year.

This does not effect your tax for the current 2017/18 tax year.

HMRC can do nothing about the fact that you forgot to submit your timesheet. PAYE is cumulative, and there are a number of weeks to go before the end of the tax year. You may find that the extra tax you have paid will automatically be refunded. Or not. It depends on the exact numbers.

molerat

W1/M1 tax code ?

chrisbur

You must be on a non-cumulative tax code (ie week 1 basis) This suggests that your tax code has been altered downwards at some point or you are on the emergency tax code. Without knowing your gross figures or your tax code cannot check the figures but if any tax has been overpaid you will eventually get it back. Might be worth getting onto a cumulative tax code but that would depend on why you are on non-cumulative.

Tax will be corrected either after the year ends or if you went onto a cumulative tax code but without knowing why the non-cumulative tax code is being used I cannot say for certain that you have been over-taxed.

National insurance though is different that will not be adjusted so worth checking if that was done correctly. It should have been calculated separately on the two payments but often this is overlooked and it is calculated as if only one week's payment has been made. In this case you might find that this has worked in your favour, I cannot tell without full details; if that is the case no need to mention it.

cherry76

Thanks for all your replies. I will remember to submit my time sheet weekly from now on. I have done it before but did not notice a big increase in income tax.

This might help to give you an idea. Gross net £1298.54 net £796.55 and income tax if £254.75. This payslip is for two weeks wages. Insurance £101.36. Tax code 10367L Tax 1 Month 1. I will get a refund eventually but in the meantime cannot afford to pay that much pay in tax. Any point contacting payroll dept. I work for an agency and usually pay £75 in income tax as norm. Any advice will be much appreciated. I thought the increase was due to the fact that I owe them £228 as per P800 and they have started collection before end of financial. Thanks

chrisbur

cherry76 wrote: »

Thanks for all your replies. I will remember to submit my time sheet weekly from now on. I have done it before but did not notice a big increase in income tax.

This might help to give you an idea. Gross net £1298.54 net £796.55 and income tax if £254.75. This payslip is for two weeks wages. Insurance £101.36. Tax code 10367L Tax 1 Month 1. I will get a refund eventually but in the meantime cannot afford to pay that much pay in tax. Any point contacting payroll dept. I work for an agency and usually pay £75 in income tax as norm. Any advice will be much appreciated. I thought the increase was due to the fact that I owe them £228 as per P800 and they have started collection before end of financial. Thanks

Do you know why you are on week 1 code?

How long have you worked there?

Can you check your tax code looks like has an extra number in it.

cherry76

Do not know why I am on week 1 code can ring again and ask but the queue is long. Been working there since end of August Did not work the previous months as was looking for a job. My mistake the code is1036L Thanks

chrisbur

The code being on a week 1 basis suggests that you were on a higher tax code and it has been reduced. If you look back at old payslips have you been on a higher tax code earlier in the year, possibly with old employer.

cherry76

I was on emergency code but it was sorted.
Previous code was 1150L.

Thanks for your help. I think I will need to ring cs again.

Dazed_and_confused

You can tell the make up of your tax code immediately by checking your personal tax account on gov.uk.

chrisbur

cherry76 wrote: »

I was on emergency code but it was sorted.
Previous code was 1150L.

Thanks for your help. I think I will need to ring cs again.

That is why they put you on a week 1 code. If they had used 1036L on a cumulative basis you would have paid extra tax for the time you were being under-taxed on 1150L.
What is your taxable pay to date and tax paid to date on your last payslip. Also the week number or date paid.