Help.. Employer messed up and I’ve paid a huge amount in PAYE Tax

Sdo309

Hi.

I started a new job last month but due to a payroll delay I didn’t get paid. My employer agreed to send me a manual payment but no payslip was generated.

This month they’ve sent me a payslip but they’ve put last months salary and this months salary on my gross monthly income. They’ve then deducted the amount they paid last month but I’ve been taxed at a higher rate as though I earn double my salary!

It turns out if I was paid in two cycles with two payslips, I wouldn’t have paid £850 in PAYE tax that has been added because the government now thinks I earn more than the prime minister😂

Payroll are refusing to do anything but obviously it’s meant by net income this month is significantly less than it should be.

What happens now? How does HMRC give me that money back or adjust my pay? I don’t really understand the process

Appreciate any help.
Thanks
Sam

00ec25

Sdo309 wrote: »

What happens now?

it automatically corrects itself in next months pay

you are on a payroll system. Assuming you are NOT (I repeat not) on a month 1 tax code, and you are therefore on a normal cumulative tax code, your payroll will work on a cumulative basis. Month 1 + month 2+ month 3 etc = cumulative to date

If you get nothing in month 1, double in month 2, and then in month 3 you get just month 3's normal, then obviously you have by month 3 been paid what you are due, 3 months pay and the tax will be corrected automatically by the payroll system to reflect the cumulative total you have earned by month 3 less the cumulative tax you have paid by month 3

why they don't teach this stuff in school is a real shame. Here are some reasonable explanations of how PAYE and the UK tax system operates

https://www.litrg.org.uk/tax-guides/employed/how-do-i-work-out-my-tax

http://www.taxvol.org.uk/about-tax/paye/

https://www.citizensadvice.org.uk/debt-and-money/tax/how-to-pay-income-tax/the-pay-as-you-earn-paye-system/

https://www.reed.co.uk/career-advice/tax-codes-explained-what-you-need-to-know-about-tax-codes/

chrisbur

Really need some figures to know what is happening here, there may be a correction due there may not be.
Your tax position may be affected by when you are being paid in relation to when you were paid by your old employer.
To begin with if you can give details of your payslip. The figures needed are taxable gross, tax paid, tax code and basis (usually follows tax code) tax month, taxable pay to date and tax paid to date.
Then from your P45 part 1A (or from your last payslip in old job) taxable pay, tax paid and tax code.
Would also be worth showing your national insurance figure from the payslip as this does sometimes get deducted incorrectly in cases like this.

Apodemus

A couple of points:

Firstly it is quite possible that the manual payment in month one had no tax deducted, so you should expect to have more tax deducted in month two.

Secondly, tax at £850 per month is nowhere near the government thinking you earn more than the prime minister. At her salary you would have a bit over £4,000 per month in PAYE tax, not £850. Indeed, £850 (assuming no pension deductions) would be reached at just under £55,000.

If your salary is somewhere in the £37k range, then you could reasonably assume that point 1 applies. If it is substantially different from that, then there is more going on. But as mentioned above, it should settle down in month three.