Underpayment Tax Situation

Bigpeanuts92

Hello all, I hope you can shed some light onto my situation.

Last year I started a new job in August 2018 and left there in Dec 2018 to start a new job in the new year. For my new job role I had to do a new start checklist just so they didn’t have to wait for a p45. Now I received a letter about a tax underpayment of £603. I have recently contacted HMRC about this and they said to me that my old employer has kept me on their payroll until the end of last tax year. HMRC said that they issued a tax refund to myself for the time I was on their payroll but haven’t received anything off them since I received my last pay check in December. I haven’t received a p45 off them at all. What options do I have to sort this out? I have contacted HMRC about this via their webchat service and said to call ACAS as they would be able to sort this out? Is that correct?

Cheers

BoGoF

Bit confusing.....are you saying the job you left in December kept you on their payroll until April. If so did they make payments to you after leaving. If you were still on the payroll with nil pay every month then this would have generated a tax refund every month. Can you remember any such payments?

Bigpeanuts92

Yes that’s correct, they kept me on until April 2019 but I left the company in December 2018. They made no payments to me after I had left. I went back through my bank statements and there is no record of that refund into my bank. I assume they would pay it into my bank?

BoGoF

How does your December payslip figures compare with the figures on your tax calculation.

Did you have any tax deducted in the 2nd job?

Bigpeanuts92

On my December payslip, I had £311 deducted for NI and Income tax which matches what’s on my personal tax account online. When I looked at personal tax online, from January to March 2019 there is -£200 under income tax for those 3 months with my old employer.

I had tax deducted in my new job but can’t remember the exact figure, I can check my payslip when in work tomorrow to get that figure.

BoGoF

Isn't that info on your personal tax account.?What were the pay and tax figures for each employment?

Bigpeanuts92

So I left my original job (Job 1) in 11th August 2018 on a salary £24,000 - Paid £11669.04 in tax

Went to my old employer started on the 20th August 2018 ( Job 2) on salary of £18,000 - £6864.74 tax paid. Left this job on the 21st December 2018.

Started new job on 7th January 2019 on salary £19,500 - £4462.39 tax paid.

Say

chrisbur

Bigpeanuts92 wrote: »

So I left my original job (Job 1) in 11th August 2018 on a salary £24,000 - Paid £11669.04 in tax

Went to my old employer started on the 20th August 2018 ( Job 2) on salary of £18,000 - £6864.74 tax paid. Left this job on the 21st December 2018.

Started new job on 7th January 2019 on salary £19,500 - £4462.39 tax paid.

Say

Am I missing something here; this appears to be more tax than salary?

unholyangel

Bigpeanuts92 wrote: »

So I left my original job (Job 1) in 11th August 2018 on a salary £24,000 - Paid £11669.04 in tax

Went to my old employer started on the 20th August 2018 ( Job 2) on salary of £18,000 - £6864.74 tax paid. Left this job on the 21st December 2018.

Started new job on 7th January 2019 on salary £19,500 - £4462.39 tax paid.

Say

When you say salary, do you mean taxable earnings during the period that you worked with them?

And are you sure the first set of figures are correct? 24k pro-rata even to month 4 wouldn't attract 11k in tax even on a D0 code.

In fact, the figures you state for tax paid are very close to what the pro-rata salary would be for those salaries for the periods stated. So do you mean taxable income rather than tax paid?

Bigpeanuts92

unholyangel wrote: »

When you say salary, do you mean taxable earnings during the period that you worked with them?

And are you sure the first set of figures are correct? 24k pro-rata even to month 4 wouldn't attract 11k in tax even on a D0 code.

In fact, the figures you state for tax paid are very close to what the pro-rata salary would be for those salaries for the periods stated. So do you mean taxable income rather than tax paid?

Yes that correct

I’m sorry, I read the wrong part of my tax account and read just total amount earned!!

So Job 1 - £1229.76 income tax paid and 933.71 NI paid. I got taxed more in June due to a yearly bonus.

Job 2 - £73.04 Income tax paid and £445.44 for the time I was employed there.

From 31st Oct to 21st Dec - I paid £678.85 Income and £445.44 NI

From 31st Jan to 29th March there is -£605.81 Income tax and £0 NI

Job 3 - £293.86 income tax paid and £282.77 NI paid until the end of the tax year

unholyangel

My first steps would be to check my bank account and ensure they never paid any money in. If they did then its all correct. If not then contact them and ask them to either send the correct figures to HMRC or issue the refunds they have declared they have paid you.