Why would my paye tax just double?

n1guy

So I recently started a new job, gave P45 etc so not on emergency code.  Same hours and pay as last job,  my last job I had been paying around £44 per week tax,  today £110 including national insurance, tax £88.  Put it this way by the time this is factored in I’m earning below min wage and I’m earning £12 per hour.  

It’s not HR fault, it’s HMRC, I have tried all day to get an answer and have got no where,  they cut me off after waiting 70min, someone finally answered put me on hold then dumped me,  came across a live chat and got such helpful replies as you earned xxxx so you have to pay tax, everyone working pays tax.  

Anyone able to help?

p00hsticks

I think more info will be needed in order for people to help.
What was your tax code in your old job and your new ? 
Do you get paid weekly or monthly ?
What PAYE week / month is shown on your last payslip from your old employment and the first from your new ? 

Veteransaver

What is the tax code on your payslip?

n1guy

Veteransaver said:

What is the tax code on your payslip?

1257L  is my tax code

n1guy

p00hsticks said:

I think more info will be needed in order for people to help.
What was your tax code in your old job and your new ? 
Do you get paid weekly or monthly ?
What PAYE week / month is shown on your last payslip from your old employment and the first from your new ? 

My tax code was the same 1257L, I am paid weekly 

My new employer I am assuming Tax Period 52 is the week.  I can’t see week number on my old payslip, just says to end March 

Hoenir

n1guy said:

It’s not HR fault, it’s HMRC,

No ones fault. It's the manner in which the tax system works. Which is entirely dependent upon the amount you earn. Payroll software is approved by the HMRC.  The devil is in the numbers themselves. 

n1guy

Hoenir said:

n1guy said:

It’s not HR fault, it’s HMRC,

No ones fault. It's the manner in which the tax system works. Which is entirely dependent upon the amount you earn. Payroll software is approved by the HMRC.  The devil is in the numbers themselves. 

The guy at HMRC didn’t even understand what I was getting at.  He didn’t see the problem.

So all year my pay has been roughly as follows.  This is weekly

Taxable income 440.00
Tax 39.00
NI 25.00

This week

Taxable income 440.00
Tax 88.00
NI 21.50

Anyone else see the problem or just me?

Hoenir

Tax due is calculated on a cumulative basis throughout the tax year. Highly unlikely the calculation is wrong.  What were the figures on your P45. 

n1guy

Hoenir said:

Tax due is calculated on a cumulative basis throughout the tax year. Highly unlikely the calculation is wrong.  What were the figures on your P45. 

Month number

12  

Total pay to date

£21,539.42

Total tax to date

£1,792.00

And on this weeks payslip 

Total gross pay 21.996.98

Gross for tax 21.980.10

Tax paid 1.880.00

Veteransaver

Could it be something to do with being week 53 at all? Leap year etc?

Marcon

n1guy said:

Hoenir said:

Tax due is calculated on a cumulative basis throughout the tax year. Highly unlikely the calculation is wrong.  What were the figures on your P45. 

Month number

12  

Total pay to date

£21,539.42

Total tax to date

£1,792.00

And on this weeks payslip 

Total gross pay 21.996.98

Gross for tax 21.980.10

Tax paid 1.880.00

'Month 12' means that your last job used up all of your year's tax free allowance, so your whole pay for this one week in your new job was taxed at basic rate. £440 x 20% tax = £88 tax. The same thing will happen for the next week.

Once we get to 6 April, you'll have another year's tax free allowance and your tax deduction will drop down again.

n1guy said:

So I recently started a new job, gave P45 etc so not on emergency code.  Same hours and pay as last job,  my last job I had been paying around £44 per week tax,  today £110 including national insurance, tax £88.  Put it this way by the time this is factored in I’m earning below min wage and I’m earning £12 per hour.  

It’s not HR fault, it’s HMRC, I have tried all day to get an answer and have got no where,  they cut me off after waiting 70min, someone finally answered put me on hold then dumped me,  came across a live chat and got such helpful replies as you earned xxxx so you have to pay tax, everyone working pays tax.  

Anyone able to help?

Minimum wage is based on gross pay, so you aren't earning below the minimum.

It's not anyone's 'fault'. Your previous employer applied the whole of your 2023/24 personal allowance to your earnings from them, so there's nothing further your new employer can do except work from the figures on your P45. I'm surprised HR couldn't explain that to you.