Paying too much tax in two weeks wages

cherry76

Gross pay up to 16th Feb £15,980.08 and tax paid p45 £1271.15. I might be wrong but I think the £228 I owe for 2016/1017 are being deducted through my tax code now as it was not taken from April I also owe £193 for 2017/2018 estimate. My tax code was 1150L recently changed to 1036 on 16th Feb. Tax code for 2017/2018 was 1150L Thanks for your help

agrinnall

Ring them early for the best chance of getting through quickly, the lines in theory open at 8 a.m. but you can usually get through a few minutes earlier than that.

chrisbur

cherry76 wrote: »

Gross pay up to 16th Feb £15,980.08 and tax paid p45 £1271.15. I might be wrong but I think the £228 I owe for 2016/1017 are being deducted through my tax code now as it was not taken from April I also owe £193 for 2017/2018 estimate. My tax code was 1150L recently changed to 1036 on 16th Feb. Tax code for 2017/2018 was 1150L Thanks for your help

Changing your tax code from 1150L to 1036L if applied at the start of the tax year would have collected an extra £228 from you. Reducing your allowance by 114 reduces it by £1140 so you pay 20% of £1140 which is £228.
Applying it at week 45 ( I am assuming it was meant to be applied last week when you received no pay) would be expected to affect your pay for the last 8 weeks of the tax year. It is a reduction of 114 places so would reduce your tax allowance by 1140/52*8 about £175 so 20% of that is £35 extra tax paid. This would leave the tax owing as £193 so hopefully this is the bit they want to collect next year.
So when you speak to HMRC find out if this £193 for 17/18 is what they expect to be left after the adjustment to your tax code of 1036L has been applied for the last few weeks of this year, or is this something else.

If this is the case and they are happy to accept an extra £35 this year then if they apply a code of say 1133L on a cumulative basis you would get back most of the overpaid tax and by the tax year end would have paid an extra £35 or thereabouts. Unfortunately they may take the view that as this extra has been collected they might as well hang on to it; if that is the case all you can try is pointing out that it was only collected by an unfortunate set of circumstances and it is unfair that you had a non-cumulative code used as one weeks allowance on what was two weeks wages. Best of luck.

Am I right in thinking that you have a salary sacrifice for I would assume pension as your tax NI figures do not match your gross figures?

cherry76

Yes your assumption is correct and so is your explanation. Will just leave it as it and will be expected to pay higher tax until end of financial year. Will get a refund in due course. Thanks a lot for your help. You are very knowledgeable regarding tax.

chrisbur

cherry76 wrote: »

Yes your assumption is correct and so is your explanation. Will just leave it as it and will be expected to pay higher tax until end of financial year. Will get a refund in due course. Thanks a lot for your help. You are very knowledgeable regarding tax.

Not sure it will be as simple as that, though HMRC were happy to collect about £35 and leave the rest for next year having got hold of more than that as a result of you being on a non-cumulative tax code they may just decide to recalculate what you owe for next year rather than stick with the old calculation and refund you based on code 1036L.
Cannot be certain they will do this but I believe it is a possibility.