Income tax on UC?

bluejojo
bluejojo Posts: 20
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Hi. I work part time in work. I earn £724 a month these last 2months I have earned £644. Ive been working the same hrs and same hourly rate. 
In work we have moved over to a new pay system 2m ago and that is when my wages dropped and im suddenly paying income tax! It says on the gov websites as I earn under £12000 I shouldnt pay income tax. My boss said my pay and tax is correct and wont check with HR. I have argued my pay is down and now im paying tax. She refuses to do help me. 
What can I do? Why am I suddenly paying income tax on such a low wags and why has my earnings dropped when nothing has changed in work? Should I ring HMRC.
Thanks

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 12,698
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    I suspect you are confusing the definition of what's correct.

    The employer may be deducting tax correctly based on the tax code HMRC have sent them. 

    But the tax code isn't necessarily correct.

    Before trying to phone HMRC you would be better looking at your payslip to see what tax code is being used and then checking your Personal Tax Account to see how that code is made up.

    Problems are known to happen when employers change payroll systems or move from one payroll agent to another but it isn't always their fault, HMRC sometimes make a mess of things.

    Also, do you really mean you "earned" £644 or did you still earn £724 but some tax has been deducted leaving you with £644 🤔
  • Grumpy_chap
    Grumpy_chap Posts: 14,361
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    bluejojo said:
    Hi. I work part time in work. I earn £724 a month these last 2months I have earned £644. Ive been working the same hrs and same hourly rate. 
    In work we have moved over to a new pay system 2m ago and that is when my wages dropped and im suddenly paying income tax! It says on the gov websites as I earn under £12000 I shouldnt pay income tax. My boss said my pay and tax is correct and wont check with HR. I have argued my pay is down and now im paying tax. She refuses to do help me. 
    What can I do? Why am I suddenly paying income tax on such a low wags and why has my earnings dropped when nothing has changed in work? Should I ring HMRC.
    Thanks
    You need to start by looking at the tax code that is stated on each payslip.
    Has this changed?
  • SiliconChip
    SiliconChip Posts: 1,256
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    Your title mentions UC but you say nothing about it in your post. Did you start to receive UC at the same time as you started to get taxed? As has already been said it'll be you tax code that's the issue, but I wonder if perhaps some change was made to that relating to your UC. Checking your personal tax account would probably shed some light on it.
  • xylophone
    xylophone Posts: 43,810
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    Did you start to receive UC at the same time as you started to get taxed?

    Would this be relevant as  according to the government web site, UC is not a taxable benefit?

    https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

    OP, presumably you are given (or can view on line) your monthly salary statement.


    Check the  tax code shown for the months before and after the change of payroll system.

    Has the code changed?

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