Random £900 tax underpayment

Dazed_and_C0nfused

The emergency tax code is 1250L, no extra tax is deducted most of the time when the emergency tax code is used.

I suspect you are mixing up the emergency tax code and the code used for a second job (BR).

conmag96

Dazed_and_C0nfused said:

The emergency tax code is 1250L, no extra tax is deducted most of the time when the emergency tax code is used.

I suspect you are mixing up the emergency tax code and the code used for a second job (BR).

I did have the BR code for a few weeks HMRC thought I had 2 jobs which I 100% know for a fact they were told I didn’t, surely they can see my income amounts and employment? 

kuratowski

In your personal tax account, click "check next tax year" and then it will show a page called "Income Tax comparison: current tax year and next tax year".  Scroll down and there should be a table called "Tax-free amount" which ought to show the deductions.  What does it say?

Also, if you go into "check current tax year" and "view or update employment details", "check payments received" is everything here correct?  Can you tell us the numbers from the "Total" row at the bottom?  This will help establish whether there has been an underpayment in the current year.

Dazed_and_C0nfused

conmag96 said:

Dazed_and_C0nfused said:

The emergency tax code is 1250L, no extra tax is deducted most of the time when the emergency tax code is used.

I suspect you are mixing up the emergency tax code and the code used for a second job (BR).

I did have the BR code for a few weeks HMRC thought I had 2 jobs which I 100% know for a fact they were told I didn’t, surely they can see my income amounts and employment? 

When you start a new job the tax code is determined by you and your employer, not HMRC.

If you had either handed in your P45 or signed statement B on a new starter declaration you would have been put on tax code 1250L by your employer, not BR.

conmag96

kuratowski said:

In your personal tax account, click "check next tax year" and then it will show a page called "Income Tax comparison: current tax year and next tax year".  Scroll down and there should be a table called "Tax-free amount" which ought to show the deductions.  What does it say?

Also, if you go into "check current tax year" and "view or update employment details", "check payments received" is everything here correct?  Can you tell us the numbers from the "Total" row at the bottom?  This will help establish whether there has been an underpayment in the current year.

Deduction say: “current tax year not applicable” “next tax year £4732 from April 6” 
okay so I changed job half way through the tax year so Here are the figures, previous job April-December earned £14,363 and tax paid is £1140

new job December-now earned £3141 and tax paid £643 

numbers from p45 

kuratowski

To be honest, I am struggling to understand why HMRC thinks you have underpaid tax, at least not unless there's something you haven't told us.  HMRC are probably forecasting your total income for the year incorrectly, on the basis of the short overlap of the two jobs.  The current "dynamic coding" system can sometimes give wild results.

This may not be much comfort, but it will probably get sorted quite quickly after the end of the tax year - when HMRC have the actual full year numbers the system will calculate your tax due accurately and then make the necessary changes to your tax code.

If you ultimately are due a refund of tax, you will get a physical letter in the post.  Do not respond to any emails or text messages offering you a tax refund, they are scams.

Sorry I can't be more help.

conmag96

kuratowski said:

To be honest, I am struggling to understand why HMRC thinks you have underpaid tax, at least not unless there's something you haven't told us.  HMRC are probably forecasting your total income for the year incorrectly, on the basis of the short overlap of the two jobs.  The current "dynamic coding" system can sometimes give wild results.

This may not be much comfort, but it will probably get sorted quite quickly after the end of the tax year - when HMRC have the actual full year numbers the system will calculate your tax due accurately and then make the necessary changes to your tax code.

If you ultimately are due a refund of tax, you will get a physical letter in the post.  Do not respond to any emails or text messages offering you a tax refund, they are scams.

Sorry I can't be more help.

Yes they’re basing it on the overlap of one week, they claim they wasn’t notified about my job change but they was.. all details I’ve gave are true, you say wild results but why can’t they put this right and now I can potential be £900 because of their mistake? Thanks for your help it’s much appreciated 

Dazed_and_C0nfused

Have you asked them to issue you (and your current employer) with a cumulative tax code?

That means any adjustment due for the current tax year, whether it be extra tax to pay or a refund due to you, is resolved then first time your employer uses the new tax code.

kuratowski

The only other things I can think of to suggest are:
1. To view every page of the personal tax account and use the "report a change" if you see anything incorrect.  There is a facility to tell them an employment has ended, if they haven't already got the message.
2. Write to ask them to review your tax calculation as you disagree with the £900 underpayment.  Don't phone them though, the people on the phone can't help, if you write it will get passed to someone more knowledgeable.

conmag96

Dazed_and_C0nfused said:

Have you asked them to issue you (and your current employer) with a cumulative tax code?

That means any adjustment due for the current tax year, whether it be extra tax to pay or a refund due to you, is resolved then first time your employer uses the new tax code.

I did ask but was told I’ll be on a non cumulative code until April.. the £900 will be paid over 12 months I was told, I paid 10% more the amount of tax than fellow employees who are on more money last week, I’ve only ever had 1 job at a time this is a joke