📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Underpaid Tax

Options
2»

Comments

  • eskbanker
    eskbanker Posts: 37,227 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    When your tax code is changed, HMRC will send you a notice and also the employer, so you should be able to cross-check via payslips that the employer is using the correct one at any point in time?
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,620 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 7 February at 6:27PM
    Nowhere in this thread have you provided any information to suggest that the employer has operated the wrong tax code.

    A start code of 0T is usually used for one of three particular reasons.  Nothing unusual in that.

    Then they operated BR, presumably at the request of HMRC.

    What else do you think this employer should have done 🤔
  • SacredStephan
    SacredStephan Posts: 159 Forumite
    Sixth Anniversary 100 Posts Photogenic Name Dropper
    Where is your personal allowance? Do you have other PAYE income?
  • Nomunnofun1
    Nomunnofun1 Posts: 688 Forumite
    500 Posts Name Dropper
    Unless the income from this employment should have been taxed all or partly at 40% I find it difficult to understand how one could be underpaid on a code BR. 
  • sheramber
    sheramber Posts: 22,565 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Unless the income from this employment should have been taxed all or partly at 40% I find it difficult to understand how one could be underpaid on a code BR. 
    Did you miss

     I was on tax code BR which is 20% but earned in a bracket where I should have paid 40% so they are asking for the extra 20% on the salary over the threshold.
  • sheramber
    sheramber Posts: 22,565 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    rrydvdsn said:
    Wouldn't HMRC have any information of correspondence with the company, so would know if they requested the change of a tax code, I was on tax code BR which is 20% but earned in a bracket where I should have paid 40% so they are asking for the extra 20% on the salary over the threshold.
    Was BR the last code issued by HMRC or was there a later one?  If  there was, what was it and when?

     If HMRC issued a later code you should have got a notice of coding showing the new code number so could check your payslip  had the new code on it.
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,620 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Unless the income from this employment should have been taxed all or partly at 40% I find it difficult to understand how one could be underpaid on a code BR. 
    Lots of reasons to be honest.  It could be that BR was the appropriate code to use when this new job first started.

    But income levels may have changed later in the year and a D0 code might have become more appropriate.  Or BR and an adjustment to the main tax code.  But if there wasn't a later review of the codes then the BR code could have continued for the remainder of the tax year.
  • Nomunnofun1
    Nomunnofun1 Posts: 688 Forumite
    500 Posts Name Dropper
    Unless the income from this employment should have been taxed all or partly at 40% I find it difficult to understand how one could be underpaid on a code BR. 
    Lots of reasons to be honest.  It could be that BR was the appropriate code to use when this new job first started.

    But income levels may have changed later in the year and a D0 code might have become more appropriate.  Or BR and an adjustment to the main tax code.  But if there wasn't a later review of the codes then the BR code could have continued for the remainder of the tax year.
    I went solely off the information in the opening post, missing the post at 5.11 pm
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.1K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244.1K Work, Benefits & Business
  • 599.1K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.