Tax Calculations

LauraThat

In June 2017 I left my Job and started a new Job. In July & August i still received pay from my old job when i rang them they said it is because they owed me money. From holidays entitlements and overtime i had accumulated. My old job said if i received pay again in September ring them back and they will find out why. Anyway i never did so left it as that as like they said they owed me.  
I have just received a Letter from HM Revenue & Customs says i owe them £435.60 from the year 2017-2018 because of my income. When i rang them they said it is because i had two jobs. I clarified that i did not. I left my job and started a new one, my old employees owed me. They informed me that if my new job put me on an emergency tax code this wouldn't of happened but because they didn't i now owe. The letter also mentions self assessment tax return however i have always worked for a company and never had to fill tax out myself. Is this right? Also i get a yearly tax thing so why didn't anyone pick up on it for that year or even the year 2018-2019. Why now?

I don't really understand Tax (wish they taught these things at school) but surely i wasn't to know. I would rather my old job have kept what they owe me now as could this be the reason im now owning? 

Dox

If your former employer paid you money owing to you as holiday pay and overtime, they should have deducted tax. If they didn't, then yes, that's why you owe tax now. Why now? Because someone at HMRC has just picked up on it for some reason. As for a self assessment tax return - what exactly does the letter you received say?

To say you wish they'd kept the money is a bit silly - even after correct tax has been paid, you'll still be better off overall. 

LauraThat

How can i see if they deducted tax on what they owed me? My wage slip was paper and i don't think i have them any more. it was the year 2017.
I can assure you i wouldn't be better off. What they paid me for owing me doesn't even cover what the tax is asking what i need to pay. Plus if they took the tax when they paid me in the July and August 2017 i wouldn't now be needing to find £400 now. 

LilElvis

Did they make the additional payments before or after issuing you with your P45? Do you still have your copy of that form?

LauraThat

I believe they made the additional payments after giving me my P 45. Its so long ago i cant even remember. Would my work have a copy of my P45 and the date i gave it to them? I'm on half term so i wouldn't be able to check all this till Monday. No, but i do have copies of my p60 with the tax year 2016 and 2017 if that helps. 

LauraThat

Sorry i got that information wrong. My work did not give me a P 45 when i left. I've searched my whats app messages and seen i sent a text to my family stating that i rang the work asking about the extra payments and asked where my p 45 was. By looks of the messages it was not till late September early October i got my p 45. 

chrisbur

LauraThat said:

Sorry i got that information wrong. My work did not give me a P 45 when i left. I've searched my whats app messages and seen i sent a text to my family stating that i rang the work asking about the extra payments and asked where my p 45 was. By looks of the messages it was not till late September early October i got my p 45. 

This does look like you had a couple of months when both your old employer and new employer were giving you a tax allowance.

If you want this checking properly you will need to give some figures.
From part 1A P45 any gross and tax figures (may be two sets ) and tax code
From last payslip in tax year with new employer tax code/basis month number or date of payment taxable gross this employment tax paid this employment 

General_Grant

chrisbur said:

LauraThat said:

Sorry i got that information wrong. My work did not give me a P 45 when i left. I've searched my whats app messages and seen i sent a text to my family stating that i rang the work asking about the extra payments and asked where my p 45 was. By looks of the messages it was not till late September early October i got my p 45. 

This does look like you had a couple of months when both your old employer and new employer were giving you a tax allowance.

If you want this checking properly you will need to give some figures.
From part 1A P45 any gross and tax figures (may be two sets ) and tax code
From last payslip with new employer tax code/basis month number or date of payment taxable gross this employment tax paid this employment 

The OP said they did not appear to have received a P45 from the old employer.  They also don't appear to have kept payslips though it is only from 2017.

LauraThat

I didn't receive my P 45 until over 3 months after i had left. The money my old employer paid me was literally holidays they owed me and overtime. They didn't pay overtime, they accumulated it and you used it as time owning but because i was and i couldn't use the time as owning they paid me for it. 
I also didn't keep my p 45.  i only keep things as the recommended 22 months and it would be my luck that after i have shredded paperwork i now need it. 

General_Grant

LauraThat said:

I didn't receive my P 45 until over 3 months after i had left. The money my old employer paid me was literally holidays they owed me and overtime. They didn't pay overtime, they accumulated it and you used it as time owning but because i was and i couldn't use the time as owning they paid me for it. 
I also didn't keep my p 45.  i only keep things as the recommended 22 months and it would be my luck that after i have shredded paperwork i now need it. 

To quote the gov.uk website:
"You should keep your records for at least 22 months after the end of the tax year the tax return is for."

"Example

"If you send your 2018 to 2019 tax return online by 31 January 2020, keep your records until at least the end of January 2021."

June 2017 was in tax year 2017 to 2018, so you would have been expected to have kept records up to at least the end of last month.

Dox

LauraThat said:

I can assure you i wouldn't be better off. What they paid me for owing me doesn't even cover what the tax is asking what i need to pay. Plus if they took the tax when they paid me in the July and August 2017 i wouldn't now be needing to find £400 now. 

You wouldn't have been taxed at a rate of more than 100%, which is what you seem to be suggesting. The payments made by your former employer would only have been subject to tax at your marginal (highest) rate, which in your case I guess is basic rate. You can't pay more in income tax than you earned in the first place!