Being taxed 50%

jesuslovesme

I was furloughed (2 days) but my furlough and job came to an end 24th July.
I began a second job for 2 days 1st July. I was taxed BR first month but then handed in my P45 and expected to get my tax returned.
However this month I got taxed 50% of my wages and my employer says its not their fault but that the code they were give by HMRC was 405T. We have only earnt £3500 thus far this tax year! Online I saw that the T means HMRC have to review but I understood that I should not pay tax as long as I don't go over £4050 - which I haven't. My employer says that the tax is automatically calculated through the use of that code by their database. Trying to get through to HMRC to speak to someone or via webchat is practically impossible. Can anyone advise me? I have a family of 4 to support and about to move out of our rented accommodation into a mobile home to survive but need to pay off the rent outstanding. My take come pay ended up being £280 instead of nearer £600 (with the tax back from previous month). HELP? ANYONE?

Lomast

not much immediate help but It should sort itself out in due course. Employers will use your tax code to balance out the tax over the year rather than pay no tax for first few months then paying all the tax after allowance is used up.

jesuslovesme

But given I only work 2 days a week and get £10 per hour - will I still be taxed each month?

Lomast

Probably not if you continue to only work 2 days and don't have any other income but it depends on what happens with your tax code if you stay on 405 then yes

Dox

jesuslovesme said:

But given I only work 2 days a week and get £10 per hour - will I still be taxed each month?

Not once your employer has the correct code - and you'll get a tax refund automatically through your current employer's payroll system. Your best bet is to explain the situation to your landlord - show your payslip if necessary to confirm the code; they should understand the system well enough to recognise what's happening - and ask if you pay the outstanding rent once matters have been sorted out, which should be either this month or next.

chrisbur

Really need far more details to see what is happening but my first thought is that a tax code that should have been issued or applied on a non-cumulative basis has actually been issued/applied on a cumulative basis.
Can you give the P45 details
Gross to date
Tax to date
Tax code (any X after it)
Week or month number
Then from payslip on which 50% tax paid
Taxable gross
Tax paid
Tax code
Anything after code eg X NC Non cumulative Cumulative 1 or anything similar different payroll progs use different ways of showing this
Gross to date
Tax paid to date
Gross to date this employment
Tax paid to date this employment

KiKi

Easiest way to speak to HMRC is to call at 0759 on Monday morning (or any morning) - I then find I usually get straight through.  I hope you manage to get it sorted.

MalMonroe

jesuslovesme said:

I was furloughed (2 days) but my furlough and job came to an end 24th July.
I began a second job for 2 days 1st July. I was taxed BR first month but then handed in my P45 and expected to get my tax returned.
However this month I got taxed 50% of my wages and my employer says its not their fault but that the code they were give by HMRC was 405T. We have only earnt £3500 thus far this tax year! Online I saw that the T means HMRC have to review but I understood that I should not pay tax as long as I don't go over £4050 - which I haven't. My employer says that the tax is automatically calculated through the use of that code by their database. Trying to get through to HMRC to speak to someone or via webchat is practically impossible. Can anyone advise me? I have a family of 4 to support and about to move out of our rented accommodation into a mobile home to survive but need to pay off the rent outstanding. My take come pay ended up being £280 instead of nearer £600 (with the tax back from previous month). HELP? ANYONE?

This is obviously a mistake and HMRC have done it to me too in the past. Your employer is right, there's nothing they can do until HMRC get it right. But this has obviously come about because you've changed jobs and HMRC don't know what code to allocate. You DO need to keep phoning HMRC, though.

This is a desperate situation for you and you need to get it sorted, even if you have to hang on the phone all day, every day, starting at 8am. Do not give up. It will be worth it. I initially tried webchat when they got my code wrong and ended up in tears of absolute frustration because people on webchat know nothing - I don't even know why that facility exists, as it doesn't help. They say their phone lines are less busy before 10am, I don't know if that's still true but you do need to get through and talk to a proper person. When you manage to get through, do stress that having the wrong tax code and being taxed at 50% has immediately put you into great financial hardship.

Good luck. But you WILL need to keep trying HMRC, no matter how long it takes. This isn't one of those cases that can wait to be 'sorted out eventually' as some people commenting have said. It's urgent!

MalMonroe

chrisbur said:

Really need far more details to see what is happening but my first thought is that a tax code that should have been issued or applied on a non-cumulative basis has actually been issued/applied on a cumulative basis.
Can you give the P45 details
Gross to date
Tax to date
Tax code (any X after it)
Week or month number
Then from payslip on which 50% tax paid
Taxable gross
Tax paid
Tax code
Anything after code eg X NC Non cumulative Cumulative 1 or anything similar different payroll progs use different ways of showing this
Gross to date
Tax paid to date
Gross to date this employment
Tax paid to date this employment

We really do not need any of that information, that's just being nosy.

OP has obviously been given the wrong tax code because of a change of jobs. It's as simple as that. But has been taxed incorrectly. It needs sorting out by phoning HMRC and we certainly do not need to see any of those personal and private details!

MalMonroe

Lomast said:

not much immediate help but It should sort itself out in due course. Employers will use your tax code to balance out the tax over the year rather than pay no tax for first few months then paying all the tax after allowance is used up.

Employers will do as HMRC tells them. This is an error - HMRC have allocated the wrong code and now this OP is suffering great financial hardship as a result. 

Dox

chrisbur said:

Really need far more details to see what is happening but my first thought is that a tax code that should have been issued or applied on a non-cumulative basis has actually been issued/applied on a cumulative basis.

No we don't - it's simply a hitch at HMRC's end, and giving loads of information here won't sort it out for OP.