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  • FIRST POST
    • PawelKrk
    • By PawelKrk 12th Apr 18, 8:22 PM
    • 13Posts
    • 2Thanks
    PawelKrk
    Paying 50% income tax!
    • #1
    • 12th Apr 18, 8:22 PM
    Paying 50% income tax! 12th Apr 18 at 8:22 PM
    Hello, sorry for my bad English, im looking for help. I've start working as an employed on 12 March and im getting payed weekly, usually 300 pounds (7,50 p/h 40 hours). I had emergency tax code BR because i didnt provide P45 from my previous employer (they have sent it to my previous adress and current teenants threw it away), so I payed 60 pounds income tax (20%) on each of my first two payments. After that new tax year began, and I called HMRC to change my tax code to correct one. They have changed it, its 1185L. Imagine my suprise when i get my first payment in new tax year and I payed 50% income tax. (320 income, 160 income tax). This week I had second payment and I payed 50% again. (280 income, 140 income tax). I called HMRC and they was suprised and told me that I need to contact my employer. When i called employer he was suprised aswell, and they told me that I need to contact HMRC. Do you have any advice? I need to add that havent recieved any payslips since I work here. They told me that they have some system problems. Thank You.
Page 2
    • molerat
    • By molerat 16th Apr 18, 6:58 PM
    • 18,373 Posts
    • 12,544 Thanks
    molerat
    You need to with your employer and tell them that their errors are causing you hardship. They have overtaxed you in the region of 274 over 2 weeks, managing payroll in that manner is simply unacceptable. Strangely they have managed to get the NI correct for 2018 rates.
    Last edited by molerat; 16-04-2018 at 7:07 PM.
    www.helpforheroes.org.uk/donations.html
    • MichelleUK
    • By MichelleUK 16th Apr 18, 8:08 PM
    • 342 Posts
    • 215 Thanks
    MichelleUK
    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?
    Originally posted by PawelKrk
    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.
    Last edited by MichelleUK; 16-04-2018 at 8:16 PM.
    • PawelKrk
    • By PawelKrk 16th Apr 18, 9:25 PM
    • 13 Posts
    • 2 Thanks
    PawelKrk
    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
    • By Suarez 17th Apr 18, 9:04 AM
    • 946 Posts
    • 613 Thanks
    Suarez
    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
    • By chrisbur 17th Apr 18, 10:50 AM
    • 2,888 Posts
    • 1,551 Thanks
    chrisbur
    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.
    Originally posted by Suarez
    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
    • By PawelKrk 17th Apr 18, 5:21 PM
    • 13 Posts
    • 2 Thanks
    PawelKrk
    Yes, I worked for different agency from april to december so the gross is from previous job.
    • chrisbur
    • By chrisbur 17th Apr 18, 6:22 PM
    • 2,888 Posts
    • 1,551 Thanks
    chrisbur
    Yes, I worked for different agency from april to december so the gross is from previous job.
    Originally posted by PawelKrk
    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
    • By PawelKrk 18th Apr 18, 11:51 AM
    • 13 Posts
    • 2 Thanks
    PawelKrk
    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
    • By chrisbur 18th Apr 18, 12:19 PM
    • 2,888 Posts
    • 1,551 Thanks
    chrisbur
    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.
    Originally posted by PawelKrk
    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
    • By PawelKrk 19th Apr 18, 9:31 PM
    • 13 Posts
    • 2 Thanks
    PawelKrk
    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
    • By chrisbur 19th Apr 18, 11:16 PM
    • 2,888 Posts
    • 1,551 Thanks
    chrisbur
    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?
    Originally posted by PawelKrk

    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.
    • PawelKrk
    • By PawelKrk 20th Apr 18, 6:20 AM
    • 13 Posts
    • 2 Thanks
    PawelKrk
    I recieved letter about pension but I wasnt interested in it so I didnt join. Here are payslip details:

    Payslip 5 - 20.04.2018
    313.20 pounds
    Tax code 1185L

    Deductions:
    Tax -257.94
    Ni 18.14

    Totals year to date:
    Gross 925.08
    Taxable gross 925.08
    Tax paid 48
    Ni paid 0

    Net pay 553
    • chrisbur
    • By chrisbur 20th Apr 18, 8:37 AM
    • 2,888 Posts
    • 1,551 Thanks
    chrisbur
    I recieved letter about pension but I wasnt interested in it so I didnt join. Here are payslip details:

    Payslip 5 - 20.04.2018
    313.20 pounds
    Tax code 1185L

    Deductions:
    Tax -257.94
    Ni 18.14

    Totals year to date:
    Gross 925.08
    Taxable gross 925.08
    Tax paid 48
    Ni paid 0

    Net pay 553
    Originally posted by PawelKrk
    Tax is now OK
    Regarding the NI cannot think of any reason why the cumulative figure would show as 0 so definitely query this.
    Regarding the pension you should not be asked if you want to join, you should be enrolled into the pension and then if you do not want to join you have to give your employer an opt-out form. Some details here....
    http://www.thepensionsregulator.gov.uk/individuals.aspx

    Were you aware that your employer has to contribute to the pension as well as yourself?
    • PawelKrk
    • By PawelKrk 20th Apr 18, 9:25 AM
    • 13 Posts
    • 2 Thanks
    PawelKrk
    You are right, I didnt read it carefuly. They will enroll me on 10th June, so I will opt out later. I will tell them about Ni problem. Thank You very much
    • agrinnall
    • By agrinnall 20th Apr 18, 10:55 AM
    • 19,935 Posts
    • 15,642 Thanks
    agrinnall
    From a quick look I can't see if it's possible to opt out of auto enrolment before it starts, but if you are enrolled and decide to leave you only get your payments back if you leave within the first month.

    https://www.gov.uk/workplace-pensions/if-you-want-to-leave-your-workplace-pension-scheme
    • badmemory
    • By badmemory 20th Apr 18, 7:04 PM
    • 1,555 Posts
    • 1,999 Thanks
    badmemory
    Why don't you want a pension? Have you already got enough provision?
    • EdSwippet
    • By EdSwippet 20th Apr 18, 7:48 PM
    • 698 Posts
    • 656 Thanks
    EdSwippet
    Why don't you want a pension? Have you already got enough provision?
    Originally posted by badmemory
    We don't know the OP's full circumstances.

    For people working perhaps short-term or temporarily in the UK, a few months or so of UK pension contributions probably will not amount to much even over the long term. And many other countries do not recognise UK pensions as tax-deferred, turning a UK pension into a tax nightmare if living outside the UK. In some jurisdictions it is entirely possible that the local tax preparation fees for a UK pension extended over decades could add up to more than it is worth.

    So yes, giving up a modest employer match is certainly leaving a bit of money "on the table", as it were. But that has to be weighed up against possible future plans.
    • badmemory
    • By badmemory 20th Apr 18, 10:21 PM
    • 1,555 Posts
    • 1,999 Thanks
    badmemory
    We don't know the OP's full circumstances.
    Originally posted by EdSwippet
    It was just a question - not an accusation. We don't know the OPs circumstances, which is why I asked the question as refusing an employers contribution would hopefully have a good reason.
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