Underpaid £1440 on tax

I changed jobs in November and my previous employer when issuing my last payslip (3 days of November + 2.5 days of unused holidays) instead of charging any tax on that amount they increased my take home by £670 with some negative tax…

What could be the reason for that? I haven’t been able to get an explanation from my ex employer.

HMRC has contacted me to advise they have update my tax code. When I’ve logged in I’ve seen that they have calculated I have underpaid £1440 in tax but it looks too much compared with the amount deducted in November.

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Comments

  • molerat
    molerat Posts: 31,556
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    edited 19 December 2023 at 2:57PM
    "Underpaid tax" is usually the amount that tax was underpaid on so for a basic rate tax payer £1440 means £288 tax needs deducting.
  • molerat said:
    "Underpaid tax" is usually the amount that tax was underpaid on so for a basic rate tax payer £1440 means £288 tax needs deducting.
    I have to pay £1440 back to HMRC as I haven’t paid enough tax according to them
  • BoGoF
    BoGoF Posts: 6,778
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    It sounds like you have had the benefit of November's personal allowance twice in November - your previous employer on the 3 days pay and as you had less taxable pay in November this led to a refund. Your new employer has also given you the personal allowance in November so this explains why you are underpaid but would need actual figures from payslips to confirm the amount
  • What are the new and old tax codes? I suspect, as previously stated, that the underpayment is not £1440. 
  • Jmgasparin
    Jmgasparin Posts: 18
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    edited 22 January at 2:51PM
    What are the new and old tax codes? I suspect, as previously stated, that the underpayment is not £1440. 
    I had 1257L, now 60LX
  • molerat
    molerat Posts: 31,556
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    How much tax did you get refunded on that payslip ?  It looks like the old employer made a major error if your code has dropped by that amount.
  • [Deleted User]
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    edited 22 January at 2:51PM
    What are the new and old tax codes? I suspect, as previously stated, that the underpayment is not £1440. 
    I had 1257L, now 60LX
    That is quite the reduction! suspect that HMRC are not aware that you have ceased your original job. Check your personal tax account to see if that is the case. You could change the estimated earnings on each job - the old one to the taxable amount that you earned according to your P45. 

    There is also the option to state that the old job has ceased.
  • molerat said:
    How much tax did you get refunded on that payslip ?  It looks like the old employer made a major error if your code has dropped by that amount.
    £693.53 on an £885 payslip. Take home £1578
  • Jmgasparin
    Jmgasparin Posts: 18
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    edited 22 January at 2:51PM
    What are the new and old tax codes? I suspect, as previously stated, that the underpayment is not £1440. 
    I had 1257L, now 60LX
    That is quite the reduction! suspect that HMRC are not aware that you have ceased your original job. Check your personal tax account to see if that is the case. You could change the estimated earnings on each job - the old one to the taxable amount that you earned according to your P45. 

    There is also the option to state that the old job has ceased.
    The funny thing (not really funny though) is that I went to personal tax account, looked at their estimates for my new job until the end of the tax year and it was £6-7k more than my actual taxable income between Dec and March so I updated the estimate and the tax I owe went from £1000 to £1440. And 
  • [Deleted User]
    [Deleted User] Posts: 0
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    edited 22 January at 2:51PM
    What are the new and old tax codes? I suspect, as previously stated, that the underpayment is not £1440. 
    I had 1257L, now 60LX
    That is quite the reduction! suspect that HMRC are not aware that you have ceased your original job. Check your personal tax account to see if that is the case. You could change the estimated earnings on each job - the old one to the taxable amount that you earned according to your P45. 

    There is also the option to state that the old job has ceased.
    The funny thing (not really funny though) is that I went to personal tax account, looked at their estimates for my new job until the end of the tax year and it was £6-7k more than my actual taxable income between Dec and March so I updated the estimate and the tax I owe went from £1000 to £1440. And 
    And? What is the estimate for the old job and have you amended to indicate that it has ceased?
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