Tax query - I dont understand! :(

krayzechick

I recently [Feb 07] changed jobs to one which paid 4k a year more. I changed over halfway through the month which meant I had 2 weeks with my old employer and 2 weeks with the new. I tried to calculate what I'd get from my old employer and I got that near enough to the £1 so i'm sure that tax is correct.

For my new job I was on BR tax for the first 2 weeks, which I expected. I paid £168.74 tax for the period 12th Feb - 28th Feb. The next month I was on 503L code and paid £164.41 tax (01/03 - 31/03). Since then I have paid £160 tax give or take the odd £ (why does it fluctuate??).

I wrote to my tax office last month with the appropriate form stating I thought I was due a refund and they've written back saying NO....

Now, I'm not the brightest crayon in the box but I dont think I should be paying the same amount of tax for 2 weeks work as I do for a whole months!!!

Anyone have any thoughts on the matter??

tigtag02

Your monthly allowence was probably used up by your 2 weeks work from your old job, therefore paying 22% (unless you hit the 40% bracket) for the first pay in your new job was correct.

If your code was 503L for your 2nd payment in your new job then any incorrect tax payment would have been automatically adjusted.

HTH
tigtag

krayzechick

but every month since then i've paid the same amount... it means that in the month of feb I paid nearly £300 tax!!! but yet before tax the wages I earned were less than my current wages...

I receive £1000 wages a month now before tax, and in Feb I earned £800, and then paid £300 tax....

chrisbur

krayzechick wrote: »

but every month since then i've paid the same amount... it means that in the month of feb I paid nearly £300 tax!!! but yet before tax the wages I earned were less than my current wages...

I receive £1000 wages a month now before tax, and in Feb I earned £800, and then paid £300 tax....

Sorry but the figures you are quoting do not seem to make a lot of sense.
You say you earn £1000 before tax and pay about £160 in tax but this should be only about £105.
Also you say you paid £168.74 on BR code for your two weeks in Feb with new employer which would be for a gross of £767.00 but you say you only earned £800.00 in total for Feb and paid £300.00 in tax. That means your old employer paid you £33.00 and took £131.26 tax.

When you say tax are you including national insurance?

Can you give specific figures for gross, tax, national insurance, any other deductions for your last full month with your old employer, the part month with old employer, part month with new employer, and first full month with new employer. Also tax codes for all these payments and the month number on the payslips. Lastly gross tax and month number on you P45.

If you can advise these details we may be able to get to the bottom of this puzzle.

cymru_am_byth_2

Hope I can help as I work for the revenue!

If you were paid monthly by your old employer, it is likely that they used your allowances up to the end of february(Month 11) although you only worked 2 weeks.

Therefore, you should have paid BR on your first 2 weeks at your new job as your allowances had already been used. and then 503l for March.

Check your 06/07 P60 to see whether any previous pay and tax is shown on it. If it is then there is no refund due as you finished the year on a cumulative code. If it is not, and your P60 shows 503L X or 503L W1/M1 then there is still no repayment due as you still received your allowances for month 12.

Hope this helps,if not get back to me.

krayzechick

I think i'm confusing myself too!! hehe There was a typo there, I meant I receive £1300 a month, not £1000.

Okay....

My current employment since March 07 (all payments are within £1 or £2 the same.) is:
Salary: £1344.75
Tax: £160.65 (503L)
NI: £85.52
Pension: £80.69

For the month of Feb 07 from my new employment I earned:
Salary: £816.46
Tax: £168.74 (BR)
NI: £37.27
Pension: £48.99



I never received my last payslip from my old employment but I received £245.24, after tax and deductions for monies owed etc (I had 6 days wages deducted).

A 'normal' wage was in January 07:
Salary: £1025
Tax: £103.69 (503L)
NI: £55.97
Pension: £35.87




I don't have a P45 or P60 here with me currently so I cant check on any other details, sorry

Can someone explain to me in lay-mans terms what's going on... Am I just missing the point completely?? =/

chrisbur

krayzechick wrote: »

I think i'm confusing myself too!! hehe There was a typo there, I meant I receive £1300 a month, not £1000.



For the month of Feb 07 from my new employment I earned:
Salary: £816.46
Tax: £168.74 (BR)
NI: £37.27
Pension: £48.99



I never received my last payslip from my old employment but I received £245.24, after tax and deductions for monies owed etc (I had 6 days wages deducted).



I don't have a P45 or P60 here with me currently so I cant check on any other details, sorry

Can someone explain to me in lay-mans terms what's going on... Am I just missing the point completely?? =/

Figures are starting to make sense now; but to check properly we need to know the gross figure that goes with the £245.24 net payment ie the part month paid for Feb by old employer. I suspect that part of this was a tax refund. If you had been paid about £200.00 this would have given you a tax rebate of about £45.00 to give a net of £245.00. These are not exact figures and take no account of any pension.
You said earlier that you paid nearly £300.00 tax for Feb. How did you arrive at this figure without knowing the details of your last payment from your old employer? If you had a tax rebate then the actual tax paid for Feb would be the £168.74 basic rate tax less the tax rebate.
Do your payslips have a taxable gross to date figure on them? If so then you can take the figure on your March payslip and deduct the figure on the January payslip to give your taxable gross for February.