Taxed for pay I’m not receiving

HPR2922

I am a casual/bank worker so effectively on a 0 hours contract (suits me as I am at uni) I submit a timesheet each month and get paid accordingly. Last month an ‘IT issue’ meant I didn’t get paid on payday. I was told I could either have an advanced payment or wait until the next month. Obviously I couldn’t go the month without pay so opted for the advanced payment. They didn’t tell me that I’d be taxed 20% and 10% national insurance on this, which meant I got considerably less than I should have (shouldn’t have been taxed at all as it was a low amount)

It ended up being two advanced payments as something else was messed up. I was told I would receive the tax I overpaid in next months pay. I have now got a copy of my payslip for this month which I’ll be paid next week.

The issue is that with the advanced payment they then add the payment onto my payslip as if I am going to be paid it, then deduct it (minus the money I am owed for overpaying tax last month). So I will be paying tax and national insurance on £1300 (my pay for this month + last months pay which was then deducted) despite the fact I will not be paid this amount and if it wasn’t for the advance payment my tax would be £0 and NI would be £29. I am paying £80 NI and £63.60 tax

Surely this isn’t correct and I am losing out? What can I do?

General_Grant

What is your tax code with this employer?

HPR2922

General_Grant wrote: »

What is your tax code with this employer?

Tax code with this employer is 1250L

General_Grant

So 1250L is the code for this new tax year. Presumably it was 1185L last year.
The problem is that the "advance" was not actually an advance but, especially because it was the final pay due in the last tax year, should really have been processed manually using the tax code.

Had you actually done other work for them in the 2018-19 tax year? (Your OP does not actually make this absolutely certain.)