Tax code changed 3X - now I owe them £100?

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Hi

I appreciate this may not be the right thread so apologies in advance.I am looking for someone to point me in the right direction please.

In the last tax year I had 3 different employers with 3 different salaries. My first role had taxable benefits and the second and third did not.

HMRC have now said that I owe approx. £100 due to my taxable benefit for 2 months being claimed as £40 but it was actually £45.

I want to recheck that I have definitely underpaid my tax before I pay online as I am not confident in my calculations. This is due to the 3 different roles and tax codes.

Does anyone have any suggestions how I can do this please?

Thanks

Comments

  • Dazed_and_confused
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    Owing £100 because your taxable company benefit in kind increased £5 is highly unlikely.

    More likely you were paid by two of the employers in one tax month. And as a result of the second company (probably correctly) using the emergency tax code you owe money.

    Have you checked the HMRC calculation against your P45, P60 and P11D's for the 2018:19 tax year?
  • singhini
    singhini Posts: 553 Forumite
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    OP - Dazed & Confused is right. He's also right you will need to look at your P45's + p60 + P11d figures.

    To truly know if you have paid the right amount of tax, we would need to know a lot more information i.e. other sources of income such as interest earnt from bank account savings, dividend income, any allowable tax deductions etc.... (but lets not get that complicated).

    If we keep it really, really simple and assume you are only a 20% tax payer and also only look at earnings + benefit in kind less tax already paid, you might want to do this:

    Add up all earnings (can be found on your P45's and P60). To this add the total value of benefit in kind (figure comes from P11d). for example

    Total earnings of £42,567 + £2,237 for BiK = £44,804

    Now take £44,804 and take away your tax free allowance of £11,850 thus giving taxable income of £32,954

    £32,954 is within the 20% tax bracket thus you would owe £6,591 in income tax.

    Now go back to all the P45's and P60 and add up how much tax you actually paid and now you should know if you have over paid or under paid or paid exactually the right amount.

    Earnings = £42,567
    BIK = £2,237
    TOTAL = £44,804
    Less Tax free = £11,850
    Taxable = £32,954
    Tax payable = £6,591 (£32,954 x 20%)
    Less Tax paid=£xxxxx (total you have actually paid on p45's + p60)
  • Moneybear
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    Thank you both for your help Dazed & Confused and Singhini!

    I agree - I find it unlikely to be the only reason but that is what the gentleman on the phone insisted. I am going to try calling back once I have re-reviewed my figures.

    I have been paid by 2 companies in the same month twice. However I was assured my tax code was adjusted for the third time to reflect this.

    My P11D shows £44 and not £45 like HMRC have said so not sure if there is maybe something else they have factored? I don't think it is worth raising necessarily for being £1 off.

    Thank you for the manual calculation. I will sit down and find out the different payslips and documents. I have them available so I will review in the morning. I wasn't asking for someone to work it out for me so I really appreciate the calculation for me to work out.

    I will update the thread if I find out any more about where my £100 shortfall has come from!
  • Moneybear
    Moneybear Posts: 218 Forumite
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    Hi all,

    As suspected the £5 of medical insurance was not the culprit!
    I called this evening and another gentleman read through and recalculated for me. I did try using the calculation above but taking into account I had 3 different tax codes I wasn't able to confidently calculate it.
    My third tax code change was to recoup the tax from a double payment I had. However it was not calculated correctly so it was not able to recoup the full amount in the months between December and March. It should have been much lower to make me even by the end of the year. Annoying as I specifically had this conversation with HMRC and trusted this would be the end of the matter. But the main thing is that I have an answer.

    Thanks again!
  • TripleH
    TripleH Posts: 3,018 Forumite
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    Sadly it can be frustrating. I worked 3 jobs in a tax year but thebproblem I had was 1 was a month temp role paid via an agency who then faffed around and didn't pay me until towards the end of the following month when I wad paid by my new role. HMRC thus taxed me for 2 jobs worked at the same time before then adjusting my code so I paid no tax for my then role for the rest of the tax year. 2 years down the line it is still in the process of being sorted but come my 5th April 2020 tax return it will hopefully be resolved finally.
    May you find your sister soon Helli.
    Sleep well.
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