I think I've paid too much tax...

[DanielJames]

Morning all

I think I've paid too much tax.

I started a new job in April, and Monday was my first full months wage.

I worked out my salary on that "listentothetaxman" website, and it would seem I've paid about £150 too much tax.

How accurate is that site? I've spoke to my manager and he says it could just be that I now have to pay more tax as I'm on a higher salary?

I got my wage slip yesterday and the tax code was "0T" - after some googling this seems to be for a second job?

I was on hold to HMRC for ages last night and ended up hanging up as I had to go out, I will of course be ringing them back, but I thought I would put it out to you guys too.

Any idea why this has happened? And how do I get my money back...

Dan

[Eric Mc]

Too little information.

What is your PAYE tax code?

[DanielJames]

Eric Mc said:

Too little information.

What is your PAYE tax code?

"0T" is listed next to tax code on my wage slip..

[MagicalTrevor]

You're on 'emergency tax'. What's probably happened is that you've not given them your P45 or they've not processed it yet. If they have the P45 then it'll be right next month.

You have overpayed your tax and you'll eventually get a refund from HMRC.

I'm pretty sure it's the P45, I'm no expert

[Eric Mc]

0T means that your salary will be taxed at 20% in full. In other words, your employer, at the moment, is not allowed to offset against any of your salary your tax free allowances for 2013/14. For most people, the annual tax free allowance for 2013/14 is £9.440 - which is shown as a Tax Coding of 944L.

Did you come to your new job having left a previous employment? If you did, your old employer should have given you a P45 when you left. You are supposed to hand this P45 to your new employer.

If you didn't come to your new job from a previous employer, you should complete a Form P46 for your new employer and he should use this information to ensure that HMRC allocates to you the proper coding for your new job.

Not everybody gets the 944L. If your new job gives you any taxable benefits in kind, such as a company car or private mefddical insurance, then your coding is adjusted downwards so HMRC can tax you properly on the benefit.

If you are a higher rate taxpayer (or even someone who earns over £100,000), then your coding will also be lower so that HMRC can tax you properly at the higher tax rates (40% or 45%).

The moral is - always check your tax coding.

[DanielJames]

Thanks for the help, much appreciated.

I went from my previous employer straight to the new one, but only recieved my P45 about 3 weeks into employment.

So the question is now, do I ring HMRC up and try and get through again, or do I hang fire until next pay day and see if amendments are made?

[MagicalTrevor]

DanielJames said:

Thanks for the help, much appreciated.

I went from my previous employer straight to the new one, but only recieved my P45 about 3 weeks into employment.

So the question is now, do I ring HMRC up and try and get through again, or do I hang fire until next pay day and see if amendments are made?

In that case, your employer or, more likely, HMRC haven't processed your P45 and that's why it's wrong. I'd imagine it will be fixed next month but you'll still be owed that money (which normally gets noticed at some point and HMRC refund you). You could call HMRC and explain this to them, I'm not sure what they'll do as I've just let it sort itself out in the past.

[sumo69]

MagicalTrevor said:

In that case, your employer or, more likely, HMRC haven't processed your P45 and that's why it's wrong. I'd imagine it will be fixed next month but you'll still be owed that money (which normally gets noticed at some point and HMRC refund you). You could call HMRC and explain this to them, I'm not sure what they'll do as I've just let it sort itself out in the past.

I would suggest this is solely as a result of your new employer not processing the P45 prior to running the monthly payroll - HMRC don't have any input.

I would call your HR or Payroll Manager to ensure they have the P45 and will process prior to the next payroll run.

Each month this carries on for will mean your net pay is reduced by £157.33, though you will get this back once the code is correct.

David

[northandy]

MagicalTrevor said:

In that case, your employer or, more likely, HMRC haven't processed your P45 and that's why it's wrong. I'd imagine it will be fixed next month but you'll still be owed that money (which normally gets noticed at some point and HMRC refund you). You could call HMRC and explain this to them, I'm not sure what they'll do as I've just let it sort itself out in the past.

Not strictly true, as long as he doesnt have a week or month 1 denoted tax code as soon as they input the p45 details the payroll system will correct the tax and he will get it back through his pay.

Op speak to whoever does your payroll (HR or finance) and make sure they are going to use the p45 in the next pay run.

[DanielJames]

sumo69 said:

MagicalTrevor said:

In that case, your employer or, more likely, HMRC haven't processed your P45 and that's why it's wrong. I'd imagine it will be fixed next month but you'll still be owed that money (which normally gets noticed at some point and HMRC refund you). You could call HMRC and explain this to them, I'm not sure what they'll do as I've just let it sort itself out in the past.

I would suggest this is solely as a result of your new employer not processing the P45 prior to running the monthly payroll - HMRC don't have any input.

I would call your HR or Payroll Manager to ensure they have the P45 and will process prior to the next payroll run.

Each month this carries on for will mean your net pay is reduced by £157.33, though you will get this back once the code is correct.

David

To update

Recently had my 3rd wage slip from the 'new' job, this time my tax code is correct (944L) but my first two wage slips were on the 0T

Who do I need to contact, HR at work or the tax office?

Dan

[sumo69]

DanielJames said:

To update

Recently had my 3rd wage slip from the 'new' job, this time my tax code is correct (944L) but my first two wage slips were on the 0T

Who do I need to contact, HR at work or the tax office?

Dan

The code is correct so no need to contact anyone.

Did you get a tax rebate in your pay? It will show itself as a much reduced tax deduction in all likelihood.

David

[northandy]

sumo69 said:

The code is correct so no need to contact anyone.

Did you get a tax rebate in your pay? It will show itself as a much reduced tax deduction in all likelihood.

David

Not unless the 944L code is on a week/month1 status, then it wont back calculate any refund.

[northandy]

DanielJames said:

To update

Recently had my 3rd wage slip from the 'new' job, this time my tax code is correct (944L) but my first two wage slips were on the 0T

Who do I need to contact, HR at work or the tax office?

Dan

There are a few online calculators to check your tax deducted is correct, listentotaxman is one.

[DanielJames]

sumo69 said:

DanielJames said:

To update

Recently had my 3rd wage slip from the 'new' job, this time my tax code is correct (944L) but my first two wage slips were on the 0T

Who do I need to contact, HR at work or the tax office?

Dan

The code is correct so no need to contact anyone.

Did you get a tax rebate in your pay? It will show itself as a much reduced tax deduction in all likelihood.

David

No rebate, phoned the taxman yesterday and after getting a bking for using the local rate number instead of the 10p a minute one, they said they would re issue the tax code and hopefully that would get me the rebate?

Using listentothetaxman my wage was exactly what it should have been last month... so no rebate was applied

[northandy]

DanielJames said:

No rebate, phoned the taxman yesterday and after getting a bking for using the local rate number instead of the 10p a minute one, they said they would re issue the tax code and hopefully that would get me the rebate?

Using listentothetaxman my wage was exactly what it should have been last month... so no rebate was applied

The week1/month1 tag stops the rebate, its often never shown on payslips though.

Glad you go it sorted.

[oyster]

Just wait to the end of the fiscal year and do a tax return. Easy.

Why don't more people do this?

[sumo69]

Because if a PAYE job is the only income and he isn't a higher rate taxpayer, there is no need

As said, a cumulative rather than a month 1 code will sort this.

David

[Welshbeef]

Talk to your payroll dept too - any issues with pay should be dealt with quickly be it overpaid or underpaid.


As your tax coding is now correct it should auto correct ie a cumulative correction in the next months pay, I wasn't aware of the month 1 issue but I have to say every new job I go to no matter how much detail I give them in advance its taken a good 3 months before its all sorted changing tax code to capture differences in benefits in kind over previous role plus processing P45 and also old company issuing P45.

Either way if your owed tax ad a significant number I'd want it ASAP not wait until my self assessment if I owed however I have the opposing view - though I've always found they quickly change tax codes down but are slow in putting then up.


Remember you can have tax codes vastly higher than 944L depending on how much pension contributions you make - at 35 years of age you can pay in 30% of your salary so at 40-45% that's a very tasty chunk of cash back .

[DanielJames]

Right, another pay day, another missing tax refund.

Back on the phone to payroll today and whoever else.

I have wage slips in font of me, both showing the same money coming in but one of them is taxed £160 more than the other.

HMRC told me I would get it back this month...

[Eric Mc]

Just keep plugging away. It will get sorted - eventually.