p45 & pay to date

chrisbur

Your P60 has only your earnings from old job up to and including the payment for month 12.

All of your earnings in your new job fall into the new tax year 2019/2020 so do not affect last year so the P60 figures are all that will show for last year. Assuming there are no adjustments for anything else you will end last year having paid the correct tax.

The final payment from your old employer has been paid in the new tax year and you have been given a tax allowance for this; though for some reason they used the tax code for last year.
The payments for your new employer all fall in this tax year and although they started taxing on 0T and then BR they went onto 1250L cumulative for week 4.
The cumulative gross figures confirm that nothing was added for the final payment from your last employer so both employers have given you a tax allowance.
If earnings and tax from your last payslip with your last employer are included with your earnings from new employer you have underpaid tax by just under £198.00

It might be that HMRC have not had these figures from your old employer so could not include them in the tax code advice that resulted in the change to your code in week 4 or perhaps they did include them and your new employer did not enter them on your tax records. Either way at some point HMRC will be after the £198 ish though cannot say when. In my day PAYE details like this did not reach HMRC until the tax year ended but these days information goes to them a lot quicker.

If it is any consolation you have a better idea of how PAYE works than whoever you spoke to at HMRC.

Euphoria1z

I might contact HMRC again and see if I can get this resolved now, rather than pay money later-

Euphoria1z

My new employer has been given the p45. I have given the p45 details to HMRC. They have confirmed everything is correct. Maybe I should just leave things alone?

Euphoria1z

Euphoria1z wrote: »

My new employer has been given the p45. I have given the p45 details to HMRC. They have confirmed everything is correct. Maybe I should just leave things alone?

Edit- Still need to know what happens to the gross pay listed on my p45? when it comes to the end of the year p60 april 2020, will that be included automatically as it currently isn't??

chrisbur

Euphoria1z wrote: »

My new employer has been given the p45. I have given the p45 details to HMRC. They have confirmed everything is correct. Maybe I should just leave things alone?

Have been reading back to the beginning again regarding the P45. If I have followed this correctly the P45 was dated 31/3/19 and had on it the standard tax code for 2018/2019 1185L.
I assume that it did not have an X after the tax code but was marked as month 1 at section 7
It is possible that your employer and/or possibly HMRC may have taken this to be an old P45; tax code updated for this year and figures ignored.
Might be worth talking to HMRC again to stress that this P45 relates to salary paid to you on 15/4/19 and belongs in tax year 2019/2020
Also could speak to your payroll dept to ask what they did with it, did they think it was an old P45.

chrisbur

Euphoria1z wrote: »

Edit- Still need to know what happens to the gross pay listed on my p45? when it comes to the end of the year p60 april 2020, will that be included automatically as it currently isn't??

Depends what happens I am afraid. If all gets sorted and HMRC advise your new employer that these figures are to be added to this year ( the owed tax will be added to your tax to be paid that payday) then they will be on the P60 included in the total figures and showing separately as earnings in previous employment.
If however HMRC decide to leave it and adjust next years tax code to collect the owing tax they will not be on the P60

unholyangel

If company B have used the p45 from company A to get your tax code then it is wholly their mistake for not including previous pay & tax figures - which would have been on the p45.

If the code came from HMRC then it would depend on whether they held p45 details at the time the code was issued as earnings from a current employment are not included in previous pay and tax. Previous pay and tax figures also wouldn't be issued to a second job even if it was a cumulative code and 0T & BR codes are codes that would be allocated to a secondary income source (so you might want to double check with HMRC). So the guy you spoke to at HMRC may have actually been correct in essence.

Although I would note that 1250L would indicate its your primary job but its possible they've sent RTI to HMRC saying its your second then lifted the code from the p45 or and given it an uplift of the increase in personal allowance (which they're allowed to do with L codes).

Dazed_and_confused

If company B have used the p45 from company A to get your tax code then it is wholly their mistake for not including previous pay & tax figures - which would have been on the p45.

I think this is a bit harsh given the op said this in the original post,

Last date with agency A was 31/3/19 as shown on P45

It sounds like confusion all round.

As the payment was clearly made in 2019:20 then it will eventually be taken into account as such by HMRC but the op may have to wait until this time next year before HMRC review 2019:20 and issue an underpayment notice.

One positive from this is that the extra tax payable won't normally be collected in full until the end of the 2020:21 tax year so the op is effectively getting an interest free loan.

Euphoria1z

update-


so HMRC are saying they haven't received the P45 or last payslip info from old employer, and wont take details over the phone as they need a copy sent.


The new employer states they don't receive the p45 details as old employer needs to send it to HMRC (though it quit clearly states on part 3 FOR THE NEW EMPLOYER/FILL and send to HMRC!) and they will action what HMRC tell them and I need to contact old employer.


I don't think half the staff know what there talking about.

chrisbur

Euphoria1z wrote: »

update-


so HMRC are saying they haven't received the P45 or last payslip info from old employer, and wont take details over the phone as they need a copy sent.


The new employer states they don't receive the p45 details as old employer needs to send it to HMRC (though it quit clearly states on part 3 FOR THE NEW EMPLOYER/FILL and send to HMRC!) and they will action what HMRC tell them and I need to contact old employer.


I don't think half the staff know what there talking about.

In my experience when I was working in payroll there were many people working in it who knew very little about PAYE NI etc. I doubt if things have changed a great deal.
I would say is it worth the hassle and time wasted to chase this up. If I were you I would just accept that I owe £198 and this will probably be collected from me at some point in the future; and until then just forget about it.
If however you decide to carry on trying to sort it out I can only wish you the best of luck with it.