Overpaid tax 2 months in a row.

Henrique14

Hi there. Hoping someone can help. 

My wife started a new part time job in September (25 hours a week), her annual salary is  £14,067,  which equates to £1,172 a month before tax. she got her first pay end of September for the amount of £847, checking her slip she was put on an emergency tax code so clearly was taxed too much.

She rung her employer who said she'd get it back on the next pay, she has had her pay slip today for payment due 31st and although it looks like she's had it back as her pay before deductions shows as £1,531 she's still been taxed a stupid amount of £362 leaving her with £1,168 pickup after deductions. 

Surely that isn't right? A quick tax calculation shows if shes picking up £1530 she should be getting £1,395 after deductions of tax/NI, it seems like she's been taxed ridiculously high again? 

Her tax code is no longer an emergency one, she's on 1257L.

So In fact although her employer has said she was getting it back as she lost £300 last month due to emergency code she's actually not had anything near that back? As she's only picking up approx £30 more than she would on a usual pay. I hope that makes sense.

Can anyone else help or maybe explain what's happened here? 

Thank you. 

DE_612183

Has she worked between April and September?

Have you checked the Personal Tax Account on HMRC?

Any overpayment will eventually work out - whether it's refunded or less tax paid each month.

Dazed_and_C0nfused

1257L is the emergency tax code.

What are the tax codes on the first two payslips?

tizerbelle

Can you provide the details from both payslips (dates, tax codes, gross pay, tax, NI pension, net pay plus total pay and tax for year to date and we can check to see what going on.

sheramber

A refund of tax overpaid would not be added to her gross pay.

It would shown as a refund in the tax deducted box or less tax than normal being deducted.

The increase in her gross pay must be due to something else.

On emergency tax she will not get the benefit of any unused personal allowances since April. 

Is there anything after the 1257L such as X or m1?
If there is she is on emergency  code.

Her employer cannot change that until they receive an amended code from HMRC.

Did your wife complete a starter  check list when she started employment?

chrisbur

Henrique14 said:

 "....her pay before deductions shows as £1,531 she's still been taxed a stupid amount of £362 leaving her with £1,168 pickup after deductions. "



"Her tax code is no longer an emergency one, she's on 1257L."



Can anyone else help or maybe explain what's happened here? 

Thank you. 

These figures that I have quoted above  (I assume all come from the last payslip)  indicate the possibility of an overlap of tax months between employments.  On the payslip are there figures for taxable pay to date and tax paid to date as well as figures for taxable pay and tax paid in this employment.

EDIT  If there are can you advise what those figures are.

badmemory

Why was her gross pay for October £1500 when it was only £1100 for September.  Are those figures correct.  Or have they added the overpaid tax back onto the gross pay.  Never underestimate what can go wrong with these things.

Dazed_and_C0nfused

badmemory said:

Why was her gross pay for October £1500 when it was only £1100 for September.  Are those figures correct.  Or have they added the overpaid tax back onto the gross pay.  Never underestimate what can go wrong with these things.

So true!

It would help if the op provided all the pertinent information, they don't seem to have actually said how much tax was originally deducted.

And given the statement that annual salary is a shade over £14k there is no explanation of why her latest payslip is paying her at a rate of £18k.  An unexplained pay rise of nearly 30% 😳