P60 Figures Incorrect

Mac_Sami

I've just had my P60, and noticed that the figure for "In This Employment" is incorrect, and under by around £2,000 gross. Therefore, the "tax deducted" figure is also incorrect.

I used to be on a BR tax code, but finally managed to get the correct tax code, 522L. Therefore I've paid a lot more tax than the figure stated, and my payslips show I am getting a lot more gross i.e. £2k more a year than the P60 shows.

Because I also self assess (which will trigger the fact I'm owed a rebate due to being on the BR tax code for most of the last financial year), I need to get the P60 amended, because the figures are simply wrong. How do I go about doing this?

Thanks.

Biggles

When you went onto 522L, that should have corrected your overpayment during previous months.

Sounds like your employer has done the P60 according to the correct position but failed to reflect the correct position in your payslips. Are you sure there wasn't one month when you got a refund or reduction of tax?

CLAPTON

do the figures on the P60 differ from those on your March payslip?
what was the tax code on your March payslip?

Milarky

I handed in my two P60s to the local tax office several years back - one with a 'full' tax code on it, the other a 'BR' tax code - in order to claim a smallish tax refund. As I was doing this, I noticed that the employer had incorrectly entered my gross pay (under stating it by £100 exactly) whilst correctly showing the amount of tax he had deducted*. I immediately reported to the member of staff that gross income was incorrect - and would they note this before working out the refund due? Of course, you know what happened? They just plugged the given figures into their calculators and the result was £23 extra refund (tax on £100 'not earned') So I said 'Sod, it' and just cashed the cheque - After all, I did tell the woman that the P60 contained an error - and it was her job to make sure this was noted.

So I'm tempted to say that if the P60 contains an error - and it is in your favour - then just submit it - because HMRC are incurious Bugg3rs


*The error in gross pay would be apparent to any one familiar with PAYE just by looking at the figures - the tax being culmulative on that P60. By adding '£100' to the gross the amount of tax showing would have been correct assuming this was my main employment

Mac_Sami

Thanks for your replies. Now I'm really, really confused...

In front of me is my P60. It says my gross pay is £14,000, and the tax paid on it is based on me having a 522L code.

I also have a set of reissued payslips, backdated from April 2007 to March 2008. Every single payslip has a 522L code, and a basic pay (i.e. before tax) of £200 less than it should be. Adding these basic pays up gives me the £14,000 figure.

This figure is wrong - I am on £16,000 gross.

I even have duplicate payslips from April 2007 up until December 2007 (the accountant failed to issue any more), which were issued to me month by month before the above set of payslips were suddenly generated in one go. Every single one of these "original" payslips has a BR code, and a basic pay of the correct amount. Adding these up would give me £16,000 for the whole financial year.

My 522L code was not applied until at least March 2008. I know this for a fact because it took weeks with the Revenue to get it sorted, and I have letters from them proving when they issued the new code for the 2007-2008 tax year (and a new code for the 2008 - 2009 year).

This is difficult to explain, so I'll try my best.

Somehow, and I haven't a clue how, payroll have decided to give me a paycut from £16,000 to £14,000 - without changing my net pay. They have managed to do this - on paper - by reducing my basic pay down £200 on a month by month basis, and retrospectively applying the 522L tax code. The P60 that goes with these set of newly issued payslips tallies up correctly.

However, this leaves me up a creek without a paddle, and some serious questions:

1. Is it legitimate that payroll can re-issue backdated payslips with a tax code given to me in March 2008, which has then been applied by payroll to the whole financial year (bearing in mind I have payslips saying I was on BR).
2. How do I go about getting my payslips changed? I think, up until March 2008, each payslip should have BR code with a basic pay of around £1300 a month. The P60 should correspond with these payslips, which then shows that I have paid too much tax, and therefore am owed a rebate of around £1100 from the Revenue.
3. How do I go about getting my P60 changed? Again, the figures are wrong on it.

It appears that the accountant has reduced my gross pay since applying the new tax code to ensure I get the same amount of net pay. This is wrong, because for the 2006 - 2007 financial year, and for most of the 2007 - 2008 financial year, I have payslips proving my BR tax code, and how much tax I have paid. I even have had a rebate from the revenue for the 2006 - 2007 financial year for the extra tax that I have paid - so clearly someone's given me a paycut!

Very, very annoyed, but appreciate any advice or answers you may have.

Thanks.

longforgotten

Cannot deny I'm finding your situation confusing.

If it was me I would firstly make a list of my pay for the year making sure that gross pay, less tax and NI = the amount of wages I actually received each month . So the list/spreadsheet would look like this...

................Gross pay ..........Tax .........NI ...............Net Pay
April
May
June
July
August
Sept
Oct
Nov
Dec
Jan
Feb
March

---

Totals

---

I would then check to see how these figures compare to the P60. You seem confident that you have not been underpaid but I would not be sure until the list was filled in.

The tax year is over, the figures sent off to the tax man, they cannot easily be changed now. It is up to you unfortunately to sort out any under/over payment of tax with the tax man.

Mac_Sami

But I have been issued two sets of payslips - let's call them Set 1 and Set 2:

Set 1 has a basic pay of £1300 per month, less tax and NI at the BR rate. Net pay = £950.

Set 2 has a basic pay of £1100 per month, less tax and NI at the 522L rate. Net pay = £950.

The P60 figures match Set 2 payslips.

I have been on the BR i.e. Set 1 of payslips for most of the 2007 - 2008 financial year, and therefore paying too much tax. I need to get a rebate.

I cannot get a rebate, because my P60 says I only earn £14,000 a year, and that I have had a 522L code for the entire 2007 - 2008 tax year. This is simply not true! I got my 522L code in March 2008.

This IS a big problem for me. My P60 declaring I am earning less gross than I really do means:
1. Because of the BR tax code I was on for most of the 2007-2008 year, I have paid tax on EVERYTHING. I have had NO personal allowance, therefore I am owed around £1100. I CANNOT get this amount back if the P60 says I have paid the right amount of tax, when I have conflicting payslips i.e. Set 1 which show I have paid too much tax.
2. This implies I am not earning enough to pay back my student loan, which is incorrect.

Again, I'll pose the questions:
1. How can the accountant issue two sets of conflicting payslips?
2. How can the accountant back-date a tax code change for the whole financial year?
3. How do I get this resolved?
4. How can I get my rebate?

Hope this makes more sense - thanks for your help so far.

pearsona

I would like to also add, that the difference in your gross could be down to a salary sacrifice, have you had any Childcare Vouchers in the year as this would reduce your gross pay.

I work in payroll, it is possible to produce new payslips, but it is unusual to do this for a tax code change, as by simply putting in the tax code on cululative (ie not Week/Month 1) would give you a tax refund. If they have re-done your payslips then you should have had a net payment on your last payslip.

I would compare your net pay on each of your new payslips with those on your old payslips and this should give you an idea how much tax you are due back - you may have had this back but not shown on your payslips.

Any questions, let me know.

Kind regards

Allan Pearson
www.payepeople.co.uk

Mac_Sami

pearsona wrote: »

I would like to also add, that the difference in your gross could be down to a salary sacrifice, have you had any Childcare Vouchers in the year as this would reduce your gross pay.

I work in payroll, it is possible to produce new payslips, but it is unusual to do this for a tax code change, as by simply putting in the tax code on cululative (ie not Week/Month 1) would give you a tax refund. If they have re-done your payslips then you should have had a net payment on your last payslip.

I would compare your net pay on each of your new payslips with those on your old payslips and this should give you an idea how much tax you are due back - you may have had this back but not shown on your payslips.

Any questions, let me know.

Kind regards

Allan Pearson
www.payepeople.co.uk

Thanks for your reply. In answer to your questions / thoughts:

I have not had a salary sacrifice that I know of. I'm in my mid-20's, and don't get any benefits or have to make any outgoing payments from my wage. All of my payslips show the basics - basic pay, less tax and NI, giving me the net pay.

The problem is that because every single payslip has been reissued, I can no longer get a tax rebate, because every single payslip has a 522L code on, compared with my old payslips, with the same dates, which have the BR code I used to be on (this BR code changed to 522L in March 2008).

The net pay on the new payslips are exactly the same as the old - it is as if payroll have applied the new 522L code retrospectively, and then lowered the basic pay to ensure I get the same net pay as before.

Does this make sense (in what I am saying - I know what they have done just seems plain wrong!)

longforgotten

Your payslips look dodgy to me ........

Did you agree to £16,000 pa gross pay, or to take home £950 per month.

I know of circumstances where employees/employers agree a take home wage, then work backwards, this would explain why they changed your gross pay while your take home pay stays the same.

If you wanted a gross pay of £16,000 it would appear you have been done ! Take it up with the payroll dept as its not just your paye that is an issue but your actual gross pay.

tigtag02

Can I just add that £16000 gross does not equate to £950 net either but more in the region of £1060 (give or take a few pounds)