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Employer mistake on childcare voucher salary assessment

(10 Posts)
rainboweveryday Mon 17-Nov-14 07:17:46

My employer had the wrong tax code for me and assumed I had no personal tax allowance (?!) and so when they did my salary assessment for childcare vouchers they told me that I was a higher rate tax payer and I could only have £124 rather than £243 childcare vouchers a month. Things were a bit hectic, and I took their word for it - which I know was a mistake.

When I had a chance to look at it again, I calculated that I definitely am a basic rate tax payer, and followed it up with them. But apparently they give the assessment to HMRC, and it now can't be changed until next tax year.

I'm pretty gutted about this, since I'm missing out on £300 of tax savings I'm entitled to, which would have come in very useful!

Does anyone know whether there's any way to have that assessment changed in the middle of the tax year? Or anything else I can do?

Thanks in advance.

Blondeshavemorefun Mon 17-Nov-14 12:40:19

Maybe put this in employment - you might get flowery if she is still about

TranmereRover Mon 17-Nov-14 12:45:32

if you earn over £100k, you lose your personal allowance - could that be it?

rainboweveryday Mon 17-Nov-14 17:53:25

I wish that was it, Rover, but unfortunately not! They were using a BR tax code, which is when this is your second job, and you are using your personal allowance on your first job... But actually this is my only job.

Thanks, blondes - will try reposting there.

JennyBlueWren Mon 17-Nov-14 19:47:55

I had this and it can be changed.
I recommend you phone HMRC as soon as they open (8am or 8:30?).
I did this and got straight through to someone. This was just last month and it was right by my next payslip. I also got a tax rebate for excess tax paid within a few weeks. Make sure you have a copy of your payslip/P45 in front of you as they'll need the codes on there.

'Fraid I can't help with the childcare vouchers though as I don't know about them and whether they can be backdated.

Cullercoats88 Mon 17-Nov-14 23:16:06

I think as they are paying you with vouchers you will find it harder to amend as they are tax free from employers earnings...call HMRC first thing as suggested and then call voucher company. It's very naughty of your employers to do this!!

cogitosum Tue 18-Nov-14 09:43:06

Your employers are wrong on several counts.

Firstly apart from those earning over 100,000 a year, for the sake of assessing eligibility for childcare vouchers, employers should assume that everyone gets the standard personal allowance regardless of tax code (with the addition of Blind Person's allowance where applicable). So even if you didn't get a personal allowance, the calculation should be done as if you do.

Secondly, whilst the assessmnet remains in place until the next year regardlss of any change in circumstances (for example pay rises, or going part time) if a mistake is made in the original assessment this would not be the case and they should recify the mistake. The example given by HMRC describes the opposite situation (ie where someone is given more exemption than they are entitled to) but the same shoudl apply in the reverse and in fact it's easier to reciify as all they need to do is provide the excess tax exempt vouchers that you are entitled to. So for example if you have been receiving �124 for 4 months when you are entitled to �243, they can provide you with an extra �476 (�119 x 4). The only issue would be if that would take you below min wage they may not be able to give it to you in one month but they could split it over a few months. As long as you don't go beyond �2916 in a given tax year, HMRC would be fine with that.

HMRC link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/368483/employer-qa.pdf

See page 11 for confirmation that standard personal allowance should be assumed and page 18 for confirmation that mistakes should be recified.

Incidently the voucher provider simply administers the scheme on your employers instruction so won't be able to do much. Your employer should contact them for advice on how to handle it.

HTH

rainboweveryday Thu 20-Nov-14 12:53:14

Thank you, Cogito - that is incredibly helpful! I've got back to them with that information, and I'll see what they are able/willing to do now.

rainboweveryday Mon 01-Dec-14 19:28:39

Thank you so much for the help. They've agreed to give me the extra vouchers, which is entirely down to the references in the govenment doc Cogito gave me. THANK YOU!!!!

cogitosum Mon 01-Dec-14 20:50:54

Oh fantastic really glad it's sorted.

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