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  • FIRST POST
    • PawelKrk
    • By PawelKrk 12th Apr 18, 8:22 PM
    • 14Posts
    • 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 1
    • John-K
    • By John-K 12th Apr 18, 8:35 PM
    • 514 Posts
    • 732 Thanks
    John-K
    • #2
    • 12th Apr 18, 8:35 PM
    • #2
    • 12th Apr 18, 8:35 PM
    You need to get your payslips as a first step.

    May I say though, well done for coming here and managing to hold down a job despite your limited English. You could serve as a really positive example to some of the posters here who think that getting a job is impossible.
    • chrisbur
    • By chrisbur 13th Apr 18, 12:41 AM
    • 2,888 Posts
    • 1,551 Thanks
    chrisbur
    • #3
    • 13th Apr 18, 12:41 AM
    • #3
    • 13th Apr 18, 12:41 AM
    Check your payslips for the two weeks you paid 50% tax. What was the taxable pay to date and tax paid to date?
    • PawelKrk
    • By PawelKrk 13th Apr 18, 6:16 AM
    • 14 Posts
    • 2 Thanks
    PawelKrk
    • #4
    • 13th Apr 18, 6:16 AM
    • #4
    • 13th Apr 18, 6:16 AM
    As I mentioned, I havent recieved any payslips because company claimed that they have some system problems. I have use HMRC account taxable income page to check how much income tax has been taken.
    • MichelleUK
    • By MichelleUK 13th Apr 18, 8:07 AM
    • 342 Posts
    • 215 Thanks
    MichelleUK
    • #5
    • 13th Apr 18, 8:07 AM
    • #5
    • 13th Apr 18, 8:07 AM
    As I mentioned, I havent recieved any payslips because company claimed that they have some system problems. I have use HMRC account taxable income page to check how much income tax has been taken.
    Originally posted by PawelKrk
    Is this a very small company?

    When you look at the HMRC account, for each week that you have been paid, does the Taxable Income, less Income Tax Paid, less National Insurance Paid equal the amount that you were actually paid?

    Also, does each column add up to the total (I know this sounds odd, but quite often they do not, but HMRC does normally show a warning if that is the case).

    If everything adds up ok, please can you list the amounts in the 3 columns for the weeks that you have been paid? We may be able to spot something but ultimately it is required by HMRC that the company give you payslips....maybe they could write down the important information for you until they can issue the payslips?

    Has your employer confirmed that they used 1185L on the two weeks where you were taxed at 50%?
    • stoozie1
    • By stoozie1 13th Apr 18, 8:16 AM
    • 539 Posts
    • 468 Thanks
    stoozie1
    • #6
    • 13th Apr 18, 8:16 AM
    • #6
    • 13th Apr 18, 8:16 AM
    Your last 2 weeks payslips should show an hourly rate of pay of £7.83 as the minimum wage went up on April 1st. Worth checking you are on the correct rate.
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- £560
    • dori2o
    • By dori2o 13th Apr 18, 8:41 AM
    • 7,581 Posts
    • 12,674 Thanks
    dori2o
    • #7
    • 13th Apr 18, 8:41 AM
    • #7
    • 13th Apr 18, 8:41 AM
    HMRC are NOT responsible for the tax deduction from your wages. Employers pay you the money, employers operate the payroll. Employers deduct the tax and NI.

    If the tax code on the information held on your online account shows as 1185L and the employer is deducting 50% in tax alone, then the Employer is deducting far too much.

    What tax code is being operated against your pay?

    If the code is 1185L then you need to speak to the employer.

    If code 1185L is being operated but 50% tax is being deducted then the employer is either not using the correct tax tables, or, their payroll system is seriously screwed up.

    You have to insist to the employer that they give you your payslips.

    Small company or not they are required to meet their obligations when it comes to salaries, tax, NI etc.

    £300 per week on 1185L in the UK (not Scotland) should result in approx £14.40 tax and £16.50 national insurance.

    Unless the tax code they are using is not 1185L then the employer is fobbing you off.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • chrisbur
    • By chrisbur 13th Apr 18, 10:48 AM
    • 2,888 Posts
    • 1,551 Thanks
    chrisbur
    • #8
    • 13th Apr 18, 10:48 AM
    • #8
    • 13th Apr 18, 10:48 AM
    As I mentioned, I havent recieved any payslips because company claimed that they have some system problems. I have use HMRC account taxable income page to check how much income tax has been taken.
    Originally posted by PawelKrk
    The answer almost certainly lies in these payslips, either the tax code or the cumulative taxable gross figures. If employer cannot provide actual payslips yet can they just write down for you the following details from your payslips.
    Taxable gross
    Tax paid
    Tax code and basis
    Week number
    Taxable gross to date
    Tax paid to date
    National insurance deducted
    • EdSwippet
    • By EdSwippet 13th Apr 18, 12:36 PM
    • 698 Posts
    • 656 Thanks
    EdSwippet
    • #9
    • 13th Apr 18, 12:36 PM
    • #9
    • 13th Apr 18, 12:36 PM
    As I mentioned, I havent recieved any payslips because company claimed that they have some system problems.
    Originally posted by PawelKrk
    From: https://www.gov.uk/payslips
    Payslips: employee rights

    Your employer must provide you with a payslip.

    They don’t have to do this if you’re:
    • not an employee, eg a contractor, freelancer or ‘worker’
    • in the police service
    • a merchant seaman
    • a master or crew member working in share fishing (paid by a share in the profits or gross earnings of a fishing vessel)
    Your payslips can be used as proof of your earnings, tax paid and any pension contributions.

    Employers can choose whether they provide printed or electronic (online) payslips.

    Payslips must be provided on or before payday.
    • PawelKrk
    • By PawelKrk 13th Apr 18, 4:52 PM
    • 14 Posts
    • 2 Thanks
    PawelKrk
    I see many question, so I will answer in order. Im working for 24.7 Recruitment Services Agency, I'm not sure if its a big company or not. The amount I get paid is correct.

    1 week:
    Taxable income - 330
    Income tax paid - 165
    National insurance paid - 20.16
    I get paid 144.84

    2 week:
    Taxable income - 281.88
    Income tax paid - 140.94
    National insurance paid - 14.38
    I get paid 126.56

    Im not sure if my company used correct tax code, I have updated it in HMRC about 5 days before I should get first payslip in new tax year. The main office of company is outside London, we have an agent who is coming to our warehouse from time to time but when i talked to him he seemed to didnt know anything, or he just didnt care. Today I called to the office and they promised to send me all payslips by email and to sort out the income tax problem. The only thing they send to me so far is a Pension letter, so I will update this thread when I get any information. Thank You for all answers!
    • badmemory
    • By badmemory 13th Apr 18, 5:16 PM
    • 1,555 Posts
    • 1,999 Thanks
    badmemory
    They must be using a K code which is totally incorrect UNLESS you also have for example a state pension or other taxable income that has not been taxed at source. This is not for them to decide but up to HMRC.

    Have you checked on your personal tax account what your tax code should be for the 18-19 tax year. They SHOULD go back to a normal 1185L tax code for any pay date after 6th April 2018.
    • chrisbur
    • By chrisbur 13th Apr 18, 5:20 PM
    • 2,888 Posts
    • 1,551 Thanks
    chrisbur
    I see many question, so I will answer in order. Im working for 24.7 Recruitment Services Agency, I'm not sure if its a big company or not. The amount I get paid is correct.

    1 week:
    Taxable income - 330
    Income tax paid - 165
    National insurance paid - 20.16
    I get paid 144.84

    2 week:
    Taxable income - 281.88
    Income tax paid - 140.94
    National insurance paid - 14.38
    I get paid 126.56

    Im not sure if my company used correct tax code, I have updated it in HMRC about 5 days before I should get first payslip in new tax year. The main office of company is outside London, we have an agent who is coming to our warehouse from time to time but when i talked to him he seemed to didnt know anything, or he just didnt care. Today I called to the office and they promised to send me all payslips by email and to sort out the income tax problem. The only thing they send to me so far is a Pension letter, so I will update this thread when I get any information. Thank You for all answers!
    Originally posted by PawelKrk
    The most important items are unfortunately missing. It is the tax code and/or the taxable pay/tax paid to date that should show the problem. Can you ask your employer to supply these details for each week?
    • PawelKrk
    • By PawelKrk 13th Apr 18, 5:42 PM
    • 14 Posts
    • 2 Thanks
    PawelKrk
    HMRC shows that tax code for 18-19 tax year is 1185L. Estimated taxable income- 15.500. I have to wait for more information. The strange thing is that on my first two payments (previous tax year) when I had BR emergency tax code for sure, I paid "only" 60 pounds weekly (20%). After that it jumped to 50%.
    • dori2o
    • By dori2o 13th Apr 18, 6:05 PM
    • 7,581 Posts
    • 12,674 Thanks
    dori2o
    The only way you can be paying 50% tax, as has been said, is if the employer is operating a large K code.

    When did you call HMRC. You say in four first post it was when the new tax year started, that was only last week. If thats the case its entirely possible that the 1185L code didnt reach your employer in time for this weeks payroll run.

    It generally takes around 72 hours from the date the code was issued to when your employer receives the code.

    Your employer can run their payroll anything upto a week before your actual payment date.

    When possible contact your employer and ask if they have received an updated tax code for this tax year. Also ask what tax code they have been using.
    To equate judgement and wisdom with occupation is at best . . . insulting.
    • PawelKrk
    • By PawelKrk 13th Apr 18, 6:44 PM
    • 14 Posts
    • 2 Thanks
    PawelKrk
    Thank You I will inform on Monday when I call the office again.
    • chrisbur
    • By chrisbur 14th Apr 18, 9:10 AM
    • 2,888 Posts
    • 1,551 Thanks
    chrisbur
    The only way you can be paying 50% tax, as has been said, is if the employer is operating a large K code.
    Originally posted by dori2o
    Also a possibility that some figures have been wrongly added into the taxable pay to date total, which is why I am suggesting the OP gets this figure as well as the tax code used.
    • xylophone
    • By xylophone 14th Apr 18, 4:08 PM
    • 25,187 Posts
    • 14,836 Thanks
    xylophone
    https://24-7recruitment.net/job/warehouse-operatives-18/


    Benefits of working with 24-7 Recruitment include:
    28 days accrued annual leave per annum (inclusive of statutory holidays PAYE only)
    Online payslips
    Excellent pay rates
    Work wear and uniform
    On-going assignments
    • PawelKrk
    • By PawelKrk 16th Apr 18, 5:51 PM
    • 14 Posts
    • 2 Thanks
    PawelKrk
    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 1150
    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?
    • agrinnall
    • By agrinnall 16th Apr 18, 6:31 PM
    • 19,935 Posts
    • 15,644 Thanks
    agrinnall
    The payslips make no sense, the YTD figures cannot be right, so you need to go back to your employer and ask them to issue you with correct information. It looks to me like their payroll system is a complete mess so it may take a while to sort out.



    One question for you, are other employees also having problems with their pay and payslips?
    • PawelKrk
    • By PawelKrk 16th Apr 18, 6:41 PM
    • 14 Posts
    • 2 Thanks
    PawelKrk
    Some people didnt recieve last 2-3 payslips aswell, but I didnt heard anyone complaining about 50% income tax so i suppose its only in my case. Maybe they will sort it out until Wednesday when we should get new payslips.
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