Paying 50% income tax!

Options
13

Comments

  • MichelleUK
    MichelleUK Posts: 427 Forumite
    First Post First Anniversary
    edited 16 April 2018 at 8:16PM
    Options
    PawelKrk wrote: »
    Today I recieved all payslips. First thing I noticed is that these payslips looks like from previous tax year with old tax code.

    1 payslip - 330 pounds
    06.04.2018
    Tax code 1150ff
    Deductions:
    165 tax
    20.16 Ni

    Totals this period:
    Gross:330
    Gross for tax:330
    Payments:330
    Deductions:0
    Additions:0

    Totals year to date:
    Gross:15.235.00
    Taxable gross: 15.235.00
    Tax paid: 1 330.80
    Ni paid: 0.00
    Pension: 0.00
    Tax relief: 0.00

    2 payslip - 281.88 pounds - 13.04.2018
    Tax code 1150L
    Deductions:
    Tax 140.94
    Ni 14.38
    Totals this period:
    Gross 281.88
    Gross for tax 281.88
    Payments 281.88
    Deductions 0.00
    Additions 0.00

    Total year to date:
    Gross: 15.516.88
    Taxable gross: 15.516.88
    Tax paid: 1.471.74
    Ni paid: 0.00
    Pension: 0.00
    Tax relief 0.00


    What do you think about it?

    As Chrisbur suspected previously, you have some earnings and tax showing in your year to date gross & tax figures that should not be there. It makes it look like you have underpaid lots of tax, so the payroll software has tried to recover the underpaid tax. HMRC limit the amount tax that can be deducted to 50%, to prevent hardship!

    You mentioned that you were originally on a BR code and that your P45 was missing. I wonder if HMRC picked up on the BR code and issued a 1150L code, along with your previous employment gross and tax figures, in the old tax year. Then the payroll person added the information to the new tax year when they should have ignored the previous pay figures and also upgraded you to a 1185L code.

    Whatever the cause, you need to tell your payroll people that your gross pay for 2017/18 is overstated by £14,905.00 and your tax is overstated by £1,165.80. Ask them to check the figures for 'previous employment' on the payroll system, it may be there.

    Hopefully they will then spot their mistake and you should get your overpaid tax in the next payroll.
  • PawelKrk
    PawelKrk Posts: 14 Forumite
    Options
    Thank You for all advices to everyone, im glad that I found so many helpful people here. Now I need to sort it out with my lovely agency. In THIS tax year hopefully!:)
  • Suarez
    Suarez Posts: 970 Forumite
    Options
    Did you have any earnings before this job?

    Maybe HMRC have sent an update with the 15k year to date figures but your employer has put the date within this financial year by mistake. Possibly using the date they added the figures instead of the date on the P6 update.
  • chrisbur
    chrisbur Posts: 4,054 Forumite
    Name Dropper First Anniversary First Post
    Options
    Suarez wrote: »
    Did you have any earnings before this job?

    Maybe HMRC have sent an update with the 15k year to date figures but your employer has put the date within this financial year by mistake. Possibly using the date they added the figures instead of the date on the P6 update.

    Cannot say for certain without figures but most likely as MichelleUK suggested HMRC issued details for last tax year and they were wrongly put on this tax year. Putting old details on a tax year is not unheard of though this is the first time I have heard of nearly £15000 of earnings being added to an employee's details while preparing for the first week of the tax year. Where on earth did they think these earnings had come from. Then not to have even looked at the figures when the OP queried them, anyone with minimal payroll experience would have wondered why the tax code was 1150L and the employee had over £15000 taxable gross and would have looked into the possibility of some sort of error. It also appears that the employer did not follow the correct procedure for a new starter, a few simple questions and they could have used the emergency tax code 1150L but instead chose to use BR the old code used for someone who failed to complete a P46. Even if the employee had refused to give the required new starter details the code to use is 0T not BR so even here they are out of date with current procedures.
  • PawelKrk
    PawelKrk Posts: 14 Forumite
    Options
    Yes, I worked for different agency from april to december so the gross is from previous job.
  • chrisbur
    chrisbur Posts: 4,054 Forumite
    Name Dropper First Anniversary First Post
    Options
    PawelKrk wrote: »
    Yes, I worked for different agency from april to december so the gross is from previous job.

    Your employer definitely has you on the wrong tax code and has previous pay and tax figures that should not be there. Have you been back to them yet and what have they said about it? If they will not correct this you will I think have to go back to HMRC to advise that your employer is using for this tax year a tax code along with previous pay and tax which belong to last tax year.
  • PawelKrk
    PawelKrk Posts: 14 Forumite
    Options
    Yes, I contacted them and they admit that they made mistake with payslips and told me that everything should be ok now. I will find out is it true on Friday when I get paid.
  • chrisbur
    chrisbur Posts: 4,054 Forumite
    Name Dropper First Anniversary First Post
    Options
    PawelKrk wrote: »
    Yes, I contacted them and they admit that they made mistake with payslips and told me that everything should be ok now. I will find out is it true on Friday when I get paid.

    Thanks for letting us know, if you have the slightest doubt about your next payslip do put up the figures for checking as before. Good luck with future payments.
  • PawelKrk
    PawelKrk Posts: 14 Forumite
    Options
    I recieved new payslip today and everything looks ok (I get tax back, tax code is ok aswell) the only thing im not sure is that below totals year to date I have NI paid 0. Im paying national insurance every week (18.14 this week), and my hmrc account confirm it aswell. Is it another mistake?
  • chrisbur
    chrisbur Posts: 4,054 Forumite
    Name Dropper First Anniversary First Post
    Options
    PawelKrk wrote: »
    I recieved new payslip today and everything looks ok (I get tax back, tax code is ok aswell) the only thing im not sure is that below totals year to date I have NI paid 0. Im paying national insurance every week (18.14 this week), and my hmrc account confirm it aswell. Is it another mistake?


    Looking back at your payslips for weeks 1 and 2 they also have 0 for NI. I think you do need to query this with your employer. Also see that you are down as 0 for pension have you not been enrolled into pension?

    Might be worth checking you have got the correct tax back can you give gross and tax refund for week 3 and the taxable pay to date and tax paid to date.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.3K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards