Overpaid Tax

Clive_Woody

In December 2018 I moved to a job at a new company, but due to delays in payroll processing my P45 I was on Tax Code 0TM1 for a couple of months Dec/Jan (before switching to 1139L). The amount of tax paid for these two months seemed higher than expected, presumably because their is no tax free allowance with the 0TM1 code (I am a higher rate tax payer).

I just checked online and saw that I am due a tax refund, but this is only £100 and says it is due to overpaying based on Medical Insurance cost, no mention of a rebate due to overpayment relating to the different tax codes.

Is it possible that HMRC has missed (miscalculated) this tax code change or is it possible payroll put in place some sort of correction when they finally got around to processing my P45 and adjusted my tax for the remaining months of the tax year?

Not sure what to do or how I might query this. Any help much appreciated

molerat

Once the P45 figures were used you should have received a refund of any overpaid tax through the PAYE system in your Feb pay.

Clive_Woody

molerat wrote: »

Once the P45 figures were used you should have received a refund of any overpaid tax through the PAYE system in your Feb pay.

There wasn't a refund in Feb (or March). Tax paid in Feb and Mar was lower than Dec and Jan, but only because they updated my tax code and my tax free allowance was taken into account again.

BoGoF

We need your figures from both employments to check. However, check your March payslip if you have a 'year to date' column does this take into account the earnings from the first employment.

molerat

Clive_Woody wrote: »

There wasn't a refund in Feb (or March). Tax paid in Feb and Mar was lower than Dec and Jan, but only because they updated my tax code and my tax free allowance was taken into account again.

You will only see a "refund" if you have paid more tax in total year to date than is due at that particular month. It would normally just show as less tax being paid and may have been spread over Feb and Mar so, being close to the end of the year, passed unnoticed.

unholyangel

When did you receive your last pay from the previous company and how much was it? If they paid you in December then most likely:
1) They used your personal allowance, so there may not have been any tax free allowance left for the new job to use and
2) They used all/part of your basic rate band, so the new job could've underpaid up to £575 in Dec.

The maximum you would've overpaid in any month is £380 on a 1139L.