Payslip PAYE Refund - No longer with employer

Bopowarls

Hi, 

I recently started a new permanent job, around 7 weeks ago. I was previously working on a fixed term contract, day rate, and paid on a weekly basis. Since leaving the previous job I have continued to received £244.20 as a PAYE Refund every week (showing in the deduction section of the payslip as PAYE R). Does anyone know if this is something to do with my personal tax allowance, or a mistake from the previous company? I have been putting the money to one side incase it's been paid in error. Any advice welcome. Thank you 

chrisbur

This seems a very high figure for a weekly tax rebate.  Can you give the taxable pay to date tax paid to date and date tax code from the last two of these rebate payslips.

Did you get a P45 from old employer.

Bopowarls

Most recent payslip 11/11/21
Taxable YTD 44327.56
Tax YTD 9918.00
1288L

Previous 3/11/21
Taxable YTD 44327.56
Tax YTD 10162.20
1288L

chrisbur

Your old employer has not taken you off their books.  You need to contact them. 
I assume that as they have not taken you off their books no P45 has been issued.
What tax code is your new employer using?

Bopowarls

New tax code is 1257L. Yeah, didn't received my P45 just assumed it took a while for them to send that over.

What is the reason for a PAYE Refund if I'm still on their books? 

chrisbur

The refund is due to the way PAYE works.  If you have no earnings one week your tax due is re-calculated and you get a further week of tax allowance and 20% band allowance.  These allowance  (as your pay to date has not changed)  results in your tax due to date being lower so you are now due to get some tax paid back.  This is all done by the payroll computer and is exactly what should happen if you say took a week off work unpaid.  In your case someone has forgotten to tell the computer that you have left so it has just carried on each week as if you were still employed but getting no earnings. 
Did you have any holiday pay due to you on leaving and if so was this paid. 

You certainly are being undertaxed at the moment as both new and old employer are giving you allowances so two lots when only one is due. 

I am assuming that the code of 1257L is being applied on a week 1 basis (usually shows on payslip as week1 or just 1 or X or non-cumulative)  If that is the case then you should be paying tax at the rate you would normally expect to pay if the code is not being paid on a week 1 basis you will have paid little or no tax.