Husband has new job, no tax being taken.

candjsmum

Hello everyone. Just looking for a bit of advice please. Hubby made redundant end of October, started new job beginning of November. Has had 5 payslips now, (paid weekly) and no tax is being taken from him, in fact the 1st week he had a small rebate. Someone at work told him its because he probably paid enough in his old job but I am worried it will catch up with us so am making sure some is put each week into our savings for when the tax man does catch up. He gave them all necessary paperwork, P45 etc so can't see why he's not being taxed. Tax code of 1383M. I have told him to speak to someone in the office but in the mean time any answers would be really appreciated.   Thank you all.

Penguin_

Assuming the new employer has used the P45 then things should be correct, is the 1383M tax code on his payslips from his new employer? How much is he earning per week?

candjsmum

Thank you for you reply. Yes the tax code is on his payslips. He does overtime each week and is bringing home approx £750 per week after NI. It just seems odd as  if he was still in his old job wouldn't he be paying tax? 

chrisbur

Sounds like something amiss my first thought would be that P45 has been entered wrong but to check properly you need to give some figures.
From P45 
Gross
Tax
Tax code 
Any X after code (unlikely if tax rebate was given but check anyway)

From last payslip
Taxable gross to date
Taxable gross this employment
Tax paid to date
Tax paid this employment
Tax code

If you do not wish to give figures check that the cumulative figures on the last payslip (taxable gross and tax paid) equal the P45 figures plus taxable gross to date and tax paid to date in this employment on last payslip.

born_again

Did he get a redundancy pay out that may have been taxed?

candjsmum

chrisbur said:

Sounds like something amiss my first thought would be that P45 has been entered wrong but to check properly you need to give some figures.
From P45 
Gross
Tax
Tax code 
Any X after code (unlikely if tax rebate was given but check anyway)

From last payslip
Taxable gross to date
Taxable gross this employment
Tax paid to date
Tax paid this employment
Tax code

If you do not wish to give figures check that the cumulative figures on the last payslip (taxable gross and tax paid) equal the P45 figures plus taxable gross to date and tax paid to date in this employment on last payslip.

Many thanks for your helps.
So as requested

From P45
Total pay to date 23791.54
Tax                       3143.60
Tax code               1383M

From todays payslip
Taxable gross to date 3860.63
Taxable gross this employment has no line for this (assume this could be the problem)  
Tax paid to date 0.00
Tax paid this employment has no line
Tax code 1383M

So it looks like the tax office thinks this is his 1st job this year?  

candjsmum

born_again said:

Did he get a redundancy pay out that may have been taxed?

Yes he had redundancy which was taxed.

molerat

It looks like the employer has not used the details from the P45 so he is starting on a nil earnings to date basis.  He needs to speak to whoever does the pay to see if they can sort it.  You need to be keeping aside 20% of anything he has earned over £266 each week to cover what will be taken when they catch up.

chrisbur

The P45 was issued for month 7  Assuming the last weekly payslip in new job was week 36 then about £470 tax is underpaid.  This all points to the employer not entering the P45 pay and tax figures though if that were the case there would have been no tax rebate for the first payslip.  On that first payslip were there any figures for tax other than the rebate?   If there was a tax figure was the gross for that week lower than usual.

candjsmum

chrisbur said:

The P45 was issued for month 7  Assuming the last weekly payslip in new job was week 36 then about £470 tax is underpaid.  This all points to the employer not entering the P45 pay and tax figures though if that were the case there would have been no tax rebate for the first payslip.  On that first payslip were there any figures for tax other than the rebate?   If there was a tax figure was the gross for that week lower than usual.

No tax was paid on his 1st payslip with them which was week 36 and my mistake he paid £125.60 on PAYE. For some reason I thought that was a rebate !! On this payslip his tax code is 1257L, his new tax code came through from HMRC at the end of November.
I have just emailed his payroll office with a copy of his P45 and have asked them to look into it for him. 

chrisbur

candjsmum said:

chrisbur said:

The P45 was issued for month 7  Assuming the last weekly payslip in new job was week 36 then about £470 tax is underpaid.  This all points to the employer not entering the P45 pay and tax figures though if that were the case there would have been no tax rebate for the first payslip.  On that first payslip were there any figures for tax other than the rebate?   If there was a tax figure was the gross for that week lower than usual.

No tax was paid on his 1st payslip with them which was week 36 and my mistake he paid £125.60 on PAYE. For some reason I thought that was a rebate !! On this payslip his tax code is 1257L, his new tax code came through from HMRC at the end of November.
I have just emailed his payroll office with a copy of his P45 and have asked them to look into it for him. 

He was on emergency tax code for first week so tax of £125.60 deducted from gross of about £870.  I do not think that could have been week 36 as that is for paydays falling from December 7th to 13th. As tax is showing as nil for fifth payslip then that £125.60 must have been rebated at some point, that may be what you remember.
Hopefully new employer will now sort it all out though they might say the P45 never got to them and it is all the fault of HMRC.