Tax muddle

notbritishgas

Hi, hopefuuly one of you tax experts can help.
Last November I changed jobs and after 1 month gave my p45 to new employer. The tax code was shown as 461L and was to be applied on month one basis.
The Nov salary was taxed at BR because the p45 was not received in time.
The Dec salary was taxed at 461L month 1 and a normal amount of tax taken.
Before the Jan salary I had a different tax code allocated 510L. In that salary they did not apply month 1 and as it appeared I had not earned enough in the year to date refunded all the tax I had paid in Nov and Dec and did not charge any for Jan.
Did the change of tax code mess things up or did my employer forget to apply month 1? The employer is saying the new tax code changed all previous instructions.
How will I now return to normal, ie get the tax back I overpaid in Nov and repay the tax they refunded in Jan.
Thanks for any help.

Elaine_Wilson

If the requirement to operate the code on a month 1 basis was removed then your current position should be correct.

A code of 510 applied for the January salary (month 10) should give you free pay of £4,257. If your total earnings for the tax year from both employers was less than that amount then you are not due any tax and were correctly refunded the previous tax deductions.

Come back with some more figures if you are still worried.

System

What code is on the PAYE coding notice you received? That should tell you if the code issued to the employer was cumulative (510L) of non-cumulative (510L mth1).

notbritishgas

Thanks for replies.
Elaine. Up to Nov 07 when I changed jobs I had earned more than £8000, so for the 3 months in my new job I should have paid tax.
Pam. The new tax code was 510L issued by the tax office. Does this mean they were incorrect and my employer is merely following their instruction.
How would the tax office know that because of a change of job I was being taxed on a month 1 basis?
Do not know whether to chase the tax man or my empoloyer. Any further help would be appreciated.

CLAPTON

Do you know why your tax code is 510L? It would normally be 522L unless you have some benefit in kind (car, health insurance) or you owe tax from last year.

Can you post the details form your last payslip
income to date, tax to date
income this month, tax this month
month or month number
tax code

chrisbur

notbritishgas wrote: »

Thanks for replies.
Elaine. Up to Nov 07 when I changed jobs I had earned more than £8000, so for the 3 months in my new job I should have paid tax.
Pam. The new tax code was 510L issued by the tax office. Does this mean they were incorrect and my employer is merely following their instruction.
How would the tax office know that because of a change of job I was being taxed on a month 1 basis?
Do not know whether to chase the tax man or my empoloyer. Any further help would be appreciated.

The new code has either been wrongly issued or has been applied wrongly by your pay office. The code should have been either still on a month 1 basis or it should have had previous pay and tax on it. Ask your employer to check the P6 that they recieved, if it had a code of 510L on month 1 basis then they applied it wrongly on cumulative basis. If it had previous pay and tax at the bottom they did not apply the pay and tax figures. If it was just for 510L and had no month 1 or previous pay and tax then the P6 was issued wrongly by the tax office. Whatever the cause you need to advise the tax office or your pay office may due this for you.