Paying 50% income tax!
PawelKrk
Posts: 14 Forumite
in Cutting tax
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.
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Comments
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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.0 -
Check your payslips for the two weeks you paid 50% tax. What was the taxable pay to date and tax paid to date?0
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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.0
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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.
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%?0 -
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 April £26700 -
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.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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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.
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 deducted0 -
From: https://www.gov.uk/payslipsAs I mentioned, I havent recieved any payslips because company claimed that they have some system problems.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)
Employers can choose whether they provide printed or electronic (online) payslips.
Payslips must be provided on or before payday.0 -
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!0 -
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 2018.0
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