P45 does not have the right total

pjbltd

Hi,

Tax query from a new worker!

I recently moved jobs. The firm I left issued me with a P45 and I then gave this to my new employer. However a month later the firm I had left issued me with one extra payslip for holidays I had not taken. The income from this payslip was taxed but is not on the P45.

Now I keep all my payslips, but I was wondering how this would effect me when I file a tax return at the end of the tax year. Do I need to go back to my old employer for a revised P45?

Any help is much appreciated, thanks!

Mikeyorks

Quote from HMRC :-

Form P45 lost or incorrect
If a former employee loses their P45 or you find out later you have made a mistake, tell the former employee to contact their HM Revenue & Customs office immediately.
You must never complete a further form or amend a P45.

.... the quote is from advice on pages relating to the old employer. I think the 'immediately' is a little OTT and more relates to 'lost' than 'wrong' ....... but it gives you the advice you sought. You may be better going via your new employer wages section - as the revise to the start up figures equally affects them?

On the SA return aspect - just aggregate (my brain's suddenly deserted and I can't think for the life of me if the P45 figures are included in the P60 - which is the more usual fig to use:o )

(sorry for the bold - picked it up from the quote)

pjbltd

Thanks Mikeyorks. I will contact HM Revenue and Customs. Through going over my payslips, I see I have been charged around £1000 too much income tax so far this year. Is it best to wait till I fill in my tax return or try to claim it back now?

dzug

pjbltd wrote: »

Thanks Mikeyorks. I will contact HM Revenue and Customs. Through going over my payslips, I see I have been charged around £1000 too much income tax so far this year. Is it best to wait till I fill in my tax return or try to claim it back now?

You should try to get your tax code amended so that you are charged correctly

Most people don't need to file a tax return - if you get your tax code right you won't need to.

fengirl_2

Was the tax deducted from your holiday pay at basic rate? If so, the tax will be correct, assuming you are a basic rate taxpayer.
You shouldn't have overpaid tax if your employer has been operating PAYE correctly - or at elast your new employer should correct it. Without seeing your payslips, its hard to advise you. Suggest you call in at your local tax office and go through it with them.

pjbltd

Thanks for the replies, I feel more details are needed to help explain my situation!

Job 1;

Total Pay was: 7969.23
Total Tax was: 1521.01
Tax code: 522L
(quoting P45)

This was the P45 I passed to my new employer.

I then received the additional payslip from Job 1:

Hol Pay: 484.61
Income Tax: 106.48
Tax Code: BR1

So far for Job 2 from aggregating payslips:

Total Pay: 3800.65
Total Tax: 599.76
Tax Code: 522L

Therefore so far this tax year I have earned a total of 12254.49 and paid 2227.25 Income Tax.

Using the tax bands from here http://www.guardian.co.uk/money/2007/oct/25/incometax.tax

I calculate I should have paid 1279 income tax and therefore am owed 948.

What complicates matters even more is I plan to leave Job 2 at the end of this month and start a new one. If I have all my payslips and tax forms can I always have it evaluated at a later date and be paid back any tax I should not have paid?

chrisbur

pjbltd wrote: »

Thanks for the replies, I feel more details are needed to help explain my situation!

Job 1;

Total Pay was: 7969.23
Total Tax was: 1521.01
Tax code: 522L
(quoting P45)

This was the P45 I passed to my new employer.

I then received the additional payslip from Job 1:

Hol Pay: 484.61
Income Tax: 106.48
Tax Code: BR1

So far for Job 2 from aggregating payslips:

Total Pay: 3800.65
Total Tax: 599.76
Tax Code: 522L

Therefore so far this tax year I have earned a total of 12254.49 and paid 2227.25 Income Tax.

Using the tax bands from here http://www.guardian.co.uk/money/2007/oct/25/incometax.tax

I calculate I should have paid 1279 income tax and therefore am owed 948.

What complicates matters even more is I plan to leave Job 2 at the end of this month and start a new one. If I have all my payslips and tax forms can I always have it evaluated at a later date and be paid back any tax I should not have paid?

The tax bands and allowanaces that you are using are for a full tax year and will only work on earnings totals at 5 April 2008. If you were to have no more taxable earnings from now untill the end of the tax year then you would be due a rebate to bring your tax paid figure down to the one you worked out.

If you advise the month or week number that goes with the P45 and payslip figures then they can be checked.

pjbltd

Thanks Chrisbur. Yes I will be earning more this tax year, I wasns't sure if I should apply for a rebate now and then be taxed on further earnings at the basic rate from now on, or if it was automatically adjusted over the year so I did not need to worry.

Mikeyorks

It should self-correct, once HMRC have advised your new employer of the correctly consolidated 'P45' figure to use.
But you aren't owed circa £1k - as the calculation you've used (as Chrisbur rightly explained) reflects a full year as though your current earnings are all those you will have to 5.4.08.

chrisbur

pjbltd wrote: »

Thanks Chrisbur. Yes I will be earning more this tax year, I wasns't sure if I should apply for a rebate now and then be taxed on further earnings at the basic rate from now on, or if it was automatically adjusted over the year so I did not need to worry.

I am afraid that this is not an option, the only time you can ask for a rebate part way through the year based on a full year's allowance is if you are not going to have any more taxable income for the rest of the year.

chrisbur

chrisbur wrote: »

I am afraid that this is not an option, the only time you can ask for a rebate part way through the year based on a full year's allowance is if you are not going to have any more taxable income for the rest of the year.

The figures you have given do look a little bit adrift if the payslips are recent and all codes are cumulative. Can you advise the tax week or month number for the P45 and payslips. Also are any marked as Week 1 or Month 1 or have a cross in the basis box?