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Original poster

To think this epitomises the squeezed middle - HMRC shitiness

183 replies

lurchersforever · 21/12/2024 10:16

So the weekend before Christmas I have received the joyous news that I have not paid enough tax this year so my personal allowance for the rest of the tax year will be adjusted so I can pay it. This will wipe out the pay rise I have just received (it was the teachers' 5.5% and the first 3 months were pretty much wiped out anyway as they were received in a lump sum in November so taxed more, so that what I received for 3 months was the same as I what I got for one month this month). Next month I'l get nothing as a result of the unpaid tax. I am due another pay rise next month as will start a promoted role so I'll see what that brings but it won't be much as not a huge step up this time.

Next month my mortgage will go up £100 as I've had to renew for the first time since the rates rose (it could be worse) and I also have to pay back pretty much all my child benefit from last year which, as a single parent with an ex who pays nothing (I am with CMS - he's low income but owns a house outright and has money for stuff he wants) stings a lot.

I did exam marking in November, which nearly killed me in terms of workload, and got £630, which is £100 less than the tax I owe so is essentially wiped out by that.

I'm so fed up. I earn a salary that I never thought I would and would have thought if I did it would be great, but disposable income isn't that different from what it was pre-Covid as a result of col etc, but, worse than that, every time I do get a bit extra it's taken away. Enormous increases in workload and stress for next to nothing in the end. What is actually the point in working yourself into the ground for it just to be taken?

OP posts:
JustMyView13 · 21/12/2024 11:07

Sign up for a government gateway account.
Log in each year and report any benefits in kind, and check that your forecast income matches what you anticipate you’ll receive. If you know you’ll do extra marking, reflect that into your forecast income. This will maximise the chances of your tax being accurate.
Ultimately, tax is tax. You have to pay what you owe, and you remain responsible for paying the correct amount.

asthecrowdwaschantingmore · 21/12/2024 11:02

You're not wrong.

Support staff in our school was offered the option to take their payrise over 3 paycheques so as not to screw up any additional benefits they are receiving. Should have offered teachers the same option.

Rainuntilseptember15 · 21/12/2024 11:01

I have known teachers in your situation this year make a call to the HMRC to ask for more details and to find out they did not owe quite as much as they were being asked for. It's worth trying (set aside an hour for it though!)

LeroyJenkinssss · 21/12/2024 10:55

im not sure this is HMRC’s shittiness who are just ensuring you’re paying tax accurately. The tax rates themselves aren’t set by them. Do you do self assessment? If so, I’ve asked them previously to reset my tax code and I will pay it via self assessment (it also gives a bit more time to put it aside). I think there’s a threshold though above which they can’t do it.

also it’s worth checking what they think your annual salary is via the Gateway as depending when you got your backdated pay they may use that months pay as representative of every month.

thepariscrimefiles · 21/12/2024 10:47

Are you saying that the all additional money you've received (backdated payrise lump sum/promotion payrise/money from marking) has either put you in a higher tax bracket or you have reached the earnings threshold where you lose your tax free pay?

Surely you would have expected this? You will still have more money than if you hadn't had these payrises.

MidnightPatrol · 21/12/2024 10:32

This might sound a bit basic but IMO part of the problem is the inflation on what are already massive monthly outgoings.

Mortgages being the obvious one.

My childcare bill is increasing £270 a month as of Hanaury. That’s an extra ~£6,000 we need to earn in 2025 just to pay for that.

Once you’re on decent wages / if you have a student loan, you’re paying 40%+ tax on any extra increases in salary, which makes it quite challenging IMO to maintain standard of living, as you need to earn so much more to cover the costs!

NantesElephant · 21/12/2024 10:29

Sympathies. I was on the wrong tax code for months due to a clerical error, that HMRC insisted could not be corrected without a letter, that got lost in the post. They are now clawing back what’s owed at a really unreasonably high rate. I can just about cope but it would put a family on a very tight budget into debt probably.

CeciliaMars · 21/12/2024 10:25

I understand completely how you feel. The salary I now earn as a teacher would have been pretty decent money 6-7 years ago, but now gets swallowed up so quickly by bills and leaves little for fun. However, the way I see it is that in today's climate, standing still financially instead of sliding backwards is an achievement. Would you consider doing some tutoring instead of exam marking? Much better paid and much less stressful.