New Tax Code. Earned 15k paid almost 2k in tax.

nubbz

I'll try to keep it simple.

From 6 April 2021 to 5 April 2022 I earned £15,140.18

I paid £1,259.75 in National Insurance.

I also paid £1,784 in tax.

I also repaid some student loan but not sure how much atm as I'd have to go through old payslips.

I didn't do any work from Jan to April this year or from April to August last year. So I had peroids of not working. If that is relevant? No idea.

A few days ago I got a letter from HMRC saying that I owe £961.60 in tax from the 2021-2022 year. So my personal tax allowance is being reduced and I am being put on the 766L X tax code.

Now, I am not a tax magican but I know that I paid way more tax and NI then I should of.

According to the salary Calculator I should of paid £514 in tax and £668 in national insurance.

So I phone HMRC and after spending an hour on hold I got through to someone who said that said I do owe HMRC tax although they could not explain why. Something about some of my previous employers putting me on the wrong tax code. She also said until she gets the P45 from some of my previous employers she wont be able to fully check it.

Im no expert but if the personal tax free allowance is £12500 and I earned £15000 how is it possible that I pay £1,784 in tax and then get a letter from HMRC saying I owe them more?

Can someone explain this to me?  

Also if there is a way of sorting this earlier that would be great. I don't know how long it takes for the previous tax year to be fully calculated but I think it takes a few months. A few months on which I will be paying more tax due to having a reduced tax free allowance. And as I plan to start University in September and stop working it will be quite annoying. .

Hopefully I explained it well enough. Thanks for any help you can offer.

Dazed_and_C0nfused

A few days ago I got a letter from HMRC saying that I owe £961.60 in tax from the 2021-2022 year.

According to the salary Calculator I should of paid £514 in tax and £668 in national insurance

What exactly was it that you received? A tax code or tax calculation or something else?

What makes you think you have overpaid National Insurance?  Are you aware tax and National Insurance are calculated using different methods?

How many different jobs did you have in 2021:22?  That is for employers who paid you in that tax year, not when you physically worked for them.

Have you received P45's from all those that you stopped working for or have some simply stopped paying you without formally ending the employment?

nubbz

Dazed_and_C0nfused said:

A few days ago I got a letter from HMRC saying that I owe £961.60 in tax from the 2021-2022 year.

According to the salary Calculator I should of paid £514 in tax and £668 in national insurance

What exactly was it that you received? A tax code or tax calculation or something else?

What makes you think you have overpaid National Insurance?  Are you aware tax and National Insurance are calculated using different methods?

How many different jobs did you have in 2021:22?  That is for employers who paid you in that tax year, not when you physically worked for them.

Have you received P45's from all those that you stopped working for or have some simply stopped paying you without formally ending the employment?

A tax code notice letter.

I am not aware that tax and national insurance are calculated using different methods. All I did was type in £15,000 into https://www.thesalarycalculator.co.uk/salary.php  and changed the year to 2021/2022 and assumed that the figures are correct.

I had 4 different employers all PAYE in the 2021 to 2022 tax year.

I have not yet had my P45s from all my employers yet.

Dazed_and_C0nfused

Have a look at the How is NIC calculated on wages? here

https://www.tax.org.uk/national-insurance-contributions-nics-an-explainer

If you don't plan on doing further work for some of the 4 employers who haven't issued a P45 it might help speed things up if you did get them to bring things upto date and get the P45 issued.

The underpayment in your 2022:23 tax code won't usually be changed until Tax have reviewed 2021:22.

Caz3121

nubbz said:

I didn't do any work from Jan to April this year or from April to August last year. So I had peroids of not working. If that is relevant? No idea.

did you receive any benefits in the periods of not working?

SiliconChip

You earned £15K in 4 months, which if annualized would equate to £45K, so it's unsurprising that you were taxed a relatively large amount in those 4 months. And because you weren't working at the end of the tax year there was no opportunity for you to be refunded overpaid tax in your pay. You should eventually get a P800 that calculates how much your overpayment was and tells you how to get a refund. You almost certainly won't get any refund on the NI you paid.

If you don't want to wait for the P800 you can use the HMRC tax estimator here https://www.gov.uk/check-income-tax

chrisbur

Regarding the student loan on details given you would appear to have earnings low enough to claim a refund....
https://www.gov.uk/repaying-your-student-loan/getting-a-refund

penners324

Get access to your personal HMRC online account.

Then review previous years.