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Tax code change - huge drop

(5 Posts)
ZoeTurtle Wed 28-Oct-15 14:00:59

I was a 993L tax code until May, when I got a company car. I knew I would then have a reduced tax-free allowance and calculated that I would lose around £100 a month.

I have finally been put on my new tax code (525T) and my pay has gone down by £550! Almost 50% of my basic salary has gone in tax and NI, where I should be a 20% tax payer. My basic is £28k.

I'm assuming HMRC have taken all the tax I should have paid from May-now in one go. Is this right? Can they do that? It was out of my control, as much as I badgered our finance team, because they had to send the correct information to HMRC. I expected the backdated tax to be taken in increments throughout the year.

Is there anything I can do? £550 is a lot to suddenly lose...

penguinplease Wed 28-Oct-15 14:11:28

No you can't do anything but it was a catch up payment as you rightly assumed and next month it will not be so high.
They don't take it in small amounts anymore unfortunately

ZoeTurtle Wed 28-Oct-15 14:26:20

Grr. Thank you for the info.

I'm really annoyed because I've been bugging the finance manager for months to get my code changed and he's dragged his feet.

annielostit Wed 28-Oct-15 18:10:17

When youve got a spare hour, ring the tax office. Find out exactly what you owe. My oh code went up and down for 2 tax yrs.

penguinplease Wed 28-Oct-15 18:30:06

You could have called hmrc to get the coding issued too. Not much help now but you definitely need the back up paperwork to ensure its all correct.

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