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    • JP1977
    • By JP1977 16th Apr 19, 8:46 AM
    • 4Posts
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    JP1977
    Tax Code Error
    • #1
    • 16th Apr 19, 8:46 AM
    Tax Code Error 16th Apr 19 at 8:46 AM
    My wife has 2 jobs - one is very low pay (circa 2k per year), the other is higher (circa 10k per year).
    When calculating her tax code last month, HMRC have made a mistake and worked it out based on both jobs being at the higher pay.
    As such, she has been taxed over 500 in her latest pay.
    As a result, we're struggling to put food on the table for the children, we've gone over our overdraft and as it's just been half term/about to be easter, it's been tough - PLus, there's still another 10 days before I get paid.
    HMRC have said there's nothing they can do until they have details from both P60's AND something called a P14 from both employers (this is despite my wife working the two jobs for many years, so they already have all her employment history). They also say 'they've never heard of anyone claiming compensation for overdraft charges' in events like these AND that it could be up to a further 5 weeks before we see a refund (It's been 3 weeks already).
    We'll manage to scrape by for the next week or so, but I'm wondering, a) How can an organisation as big as HMRC take a months pay off someone and expect them to get by/ and b) Is there a legitimate and successful method of claiming for losses, such as overdraft charges etc?
Page 1
    • BoGoF
    • By BoGoF 16th Apr 19, 8:59 AM
    • 4,222 Posts
    • 3,758 Thanks
    BoGoF
    • #2
    • 16th Apr 19, 8:59 AM
    • #2
    • 16th Apr 19, 8:59 AM
    It seems odd that the tax code would suddenly change like that. What did the code change from and what did it change to and when was it issued.
    • JP1977
    • By JP1977 16th Apr 19, 10:29 AM
    • 4 Posts
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    JP1977
    • #3
    • 16th Apr 19, 10:29 AM
    • #3
    • 16th Apr 19, 10:29 AM
    I guess the change was due to the new tax year - whatever records they have or whatever details they use to determine personal allowance must have erred or changed in someway on their systems. I don't have exact details to hand of tax codes, but the above is the basic gist of what's happened - the 'why' at this stage is less important than the 'what can we do to resolve' though.
    • BoGoF
    • By BoGoF 16th Apr 19, 10:36 AM
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    BoGoF
    • #4
    • 16th Apr 19, 10:36 AM
    • #4
    • 16th Apr 19, 10:36 AM
    It can't be 'resolved' untl HMRC have the final pay and tax information from the employers....as they have told you.

    Re any claim to bank charges etc.....this is why the how it happened is important. You would be making a formal complaint and asking to be remimbursed any charges.
    • sheramber
    • By sheramber 16th Apr 19, 11:23 AM
    • 6,166 Posts
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    sheramber
    • #5
    • 16th Apr 19, 11:23 AM
    • #5
    • 16th Apr 19, 11:23 AM
    As the March pay is the last in the year HMRC need the end of year information to proceed.

    Have you checked her new code number for this year 2019/20 to make sure it is correct?
    • JGB1955
    • By JGB1955 16th Apr 19, 11:28 AM
    • 54 Posts
    • 64 Thanks
    JGB1955
    • #6
    • 16th Apr 19, 11:28 AM
    • #6
    • 16th Apr 19, 11:28 AM
    I have pensions from two sources. Both will be increasing this month so I just went online and adjusted my two tax codes accordingly. It may be worth your while checking that the codes for 2019/20 have been set up correctly, or the problem may continue.
    • JP1977
    • By JP1977 16th Apr 19, 3:09 PM
    • 4 Posts
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    JP1977
    • #7
    • 16th Apr 19, 3:09 PM
    • #7
    • 16th Apr 19, 3:09 PM
    That's the issue - they've estimated the tax code for the coming tax year based off an incorrect assertion that 2 jobs will pay the higher (relatively speaking) wage, and have immediately taken tax to account for a perceived (and incorrect) deficit.
    Had they bothered to look back over their records correctly, the tax code would not have changed so drastically (except perhaps to account for an increase in personal allowance, which should have had the opposite effect).
    Since our son was born a few years ago, my wife has taken on two part time jobs, and has never earned above the personal allowance - HMRC have all this info on record.
    Anyway, thanks for the input - my question of "Is there a legitimate and successful method of claiming for losses, such as overdraft charges etc?" wasn't directly answered, but I know at least that it doesn't look like there's a quick way out of the mess they've imposed upon us. I guess we'll just go back to them in a few weeks with all the information about earnings, projected earnings, old tax codes, new tax codes etc and continue to struggle on.
    • MichelleUK
    • By MichelleUK 16th Apr 19, 5:02 PM
    • 388 Posts
    • 247 Thanks
    MichelleUK
    • #8
    • 16th Apr 19, 5:02 PM
    • #8
    • 16th Apr 19, 5:02 PM
    If you have a personal tax account, you can go in and estimate the new earnings for each employment and they should issue new tax codes. I have found that the telephone staff have little idea about what is possible to change for yourself through your tax account. They often say that they must have information from the employer, but if you do it via the tax account, they will change it.
    • unholyangel
    • By unholyangel 16th Apr 19, 6:51 PM
    • 13,387 Posts
    • 10,730 Thanks
    unholyangel
    • #9
    • 16th Apr 19, 6:51 PM
    • #9
    • 16th Apr 19, 6:51 PM
    That's the issue - they've estimated the tax code for the coming tax year based off an incorrect assertion that 2 jobs will pay the higher (relatively speaking) wage, and have immediately taken tax to account for a perceived (and incorrect) deficit.
    Had they bothered to look back over their records correctly, the tax code would not have changed so drastically (except perhaps to account for an increase in personal allowance, which should have had the opposite effect).
    Since our son was born a few years ago, my wife has taken on two part time jobs, and has never earned above the personal allowance - HMRC have all this info on record.
    Anyway, thanks for the input - my question of "Is there a legitimate and successful method of claiming for losses, such as overdraft charges etc?" wasn't directly answered, but I know at least that it doesn't look like there's a quick way out of the mess they've imposed upon us. I guess we'll just go back to them in a few weeks with all the information about earnings, projected earnings, old tax codes, new tax codes etc and continue to struggle on.
    Originally posted by JP1977
    Estimated income does not affect how much tax you pay except perhaps when you have multiple income sources and you're in higher rate territory. Higher rate band starts on income of 46351 and over for the last year and 50001 and over for this year.

    How did the tax code change? Why would her personal allowance have went up? Did she make a claim for relief of some sort (putting aside that theres no point claiming relief if you don't pay any tax) that potentially caused this change?
    Money doesn't solve poverty.....it creates it.
    • Funkyfreddy
    • By Funkyfreddy 17th Apr 19, 1:02 PM
    • 316 Posts
    • 118 Thanks
    Funkyfreddy
    That's the issue - they've estimated the tax code for the coming tax year based off an incorrect assertion that 2 jobs will pay the higher (relatively speaking) wage, and have immediately taken tax to account for a perceived (and incorrect) deficit.
    Originally posted by JP1977
    What aret the two tax codes ?
    • Dazed and confused
    • By Dazed and confused 17th Apr 19, 8:18 PM
    • 4,550 Posts
    • 2,343 Thanks
    Dazed and confused
    HMRC have said there's nothing they can do until they have details from both P60's AND something called a P14 from both employers (this is despite my wife working the two jobs for many years, so they already have all her employment history).
    They'll be waiting a long time for the P14s!

    The last time employers had to send them to HMRC was six years ago.

    I guess the change was due to the new tax year -
    If that was the case why would your wife have paid tax in the 2018:19 tax year?

    What taxable pay, tax deducted and tax codes are shown on her final payslips for 2018:19?
    • unholyangel
    • By unholyangel 17th Apr 19, 8:41 PM
    • 13,387 Posts
    • 10,730 Thanks
    unholyangel
    They'll be waiting a long time for the P14s!

    The last time employers had to send them to HMRC was six years ago.



    If that was the case why would your wife have paid tax in the 2018:19 tax year?

    What taxable pay, tax deducted and tax codes are shown on her final payslips for 2018:19?
    Originally posted by Dazed and confused
    The last time they had to send the physical triplicate forms maybe, but they do still need to make end of year submissions
    Money doesn't solve poverty.....it creates it.
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