Unfair tax bill

shopaholic2

:mad: Hi all, hope this is in the right place, cant find another suitable place!
Ok, I have been on incapacity benefit for about 8 years, this was taken off me nov last year,and i now work, 18hours a week, so when they stopped my inc ben i recieved a p45, which i duly gave to the treasurer (I work at a playgroup).
Anyway, she rings me today to kindly inform me that she has checked everything out, regards my p45, added up my income from incben and playgroup etc (bearing in mind i did permitted work for a short time) and I now have a tax bill of £260 to pay this month.:eek:
Which is half my wage!!
Is this fair? well, no, and to be honest, where is the incentive to go back to work????
Makes me feel like saying, stuff this, and going on job seekers.
You just cant win, you work hard and get screwed for tax.
Can i do anything about this?
I'm guessing the answer will be no, tough, deal with it, , but worth asking!!!

fengirl_2

There is something wrong here. They can't deduct such a large amount of tax in one month in order to collect tax not deducted in previous months.

Need to know the amount of your IB up til when you signed off, your code number as shown on P45 and your pay to date from playgroup. If you would prefer to PM me with thse details rather than post on here, would be happy to advise.

I wonder if the benefit office have shown code BR on your P45 - they are notorious for making up code numbers.

chrisbur

shopaholic2 wrote: »

:mad: Hi all, hope this is in the right place, cant find another suitable place!
Ok, I have been on incapacity benefit for about 8 years, this was taken off me nov last year,and i now work, 18hours a week, so when they stopped my inc ben i recieved a p45, which i duly gave to the treasurer (I work at a playgroup).
Anyway, she rings me today to kindly inform me that she has checked everything out, regards my p45, added up my income from incben and playgroup etc (bearing in mind i did permitted work for a short time) and I now have a tax bill of £260 to pay this month.:eek:
Which is half my wage!!
Is this fair? well, no, and to be honest, where is the incentive to go back to work????
Makes me feel like saying, stuff this, and going on job seekers.
You just cant win, you work hard and get screwed for tax.
Can i do anything about this?
I'm guessing the answer will be no, tough, deal with it, , but worth asking!!!

Can you advise P45 details, Gross tax and Week/Month number?

shopaholic2

Hi, thanks for replies.
I have worked out that with benefit and wage i have earned £6276 since may last year.
Thing is, in may i started this job, and informed Benefits and they said "oh its fine, go ahead and do permitted work" nnot telling me that this would incur a huge tax bill!!!
My P45 says 522L, i'm not sure if this makes a difference, but thanks for all your help.

withabix

If you've not paid any tax in this tax year, if you've earned £6276 and your personal allowance is £4350 (10/12 * £5220) to end of January [2 months left in tax year], then the tax you should have paid would have been on £1926 at the 10% starting rate, so a MAXIMUM of £192.60.

The remainder £67.40 (£260-£192.60) looks about right for NI contributions.

£260 looks about right.

If tax is due, then it should be paid. If you think it should be spread, speak to your tax office - they might allow it to go into next year's tax code, but all that would do is give you a higher tax bill next year.

chrisbur

shopaholic2 wrote: »

Hi, thanks for replies.
I have worked out that with benefit and wage i have earned £6276 since may last year.
Thing is, in may i started this job, and informed Benefits and they said "oh its fine, go ahead and do permitted work" nnot telling me that this would incur a huge tax bill!!!
My P45 says 522L, i'm not sure if this makes a difference, but thanks for all your help.

You advise that you have had £6276 since May. The tax year begins on 6 April what have you been paid since then?

If i understand correctly you started work in May and were getting benefits untill November. When you started work where you given a P46 to fill in and if so which box did you tick.
Example of P46 at http://www.hmrc.gov.uk/forms/p46.pdf

To check the P45 can you advise what appears at sections 6 7 and 8