Overpaying on tax despite correct tax code?

[Cailleach]

Before I ring HRC on Monday, can anyone offer an explanation for this?

I started a new job back in September via an agency. In December, the firm took me on to their own books.

I was paid roughly £470 a week via the agency and was paying about £45 in income tax. I earn more or less the same via the firm but am now paying nearly £100 a week in income tax!

Note: i am NOT on an emergency tax code, my code is correct.

What on earth is going on?!

PS: I do not owe HMRC any money! My tax is all up to date.

Is it all income tax or is some pension

It does sound a lot though, the original amount sounds about right for tax

No none is pension, it's purely tax. My NI is too high as well.

On further investigation they have my estimated income at nearly £10k more than it is....yet my tax code is correct? I am totally baffled.....

How much work had you done between April and September?

If you hadn't earned much, it might be that you hadn't used up your tax allowance so you had some low taxed months before your allowance balanced again.

Did you perhaps get more than a month's salary in your first pay-packet, so they are assuming you will be paid that amount each month rather than it be to catch up?

HMRC will still think you are working for the agency, therefore will tax your '2nd job" accordingly.

It should correct itself.

I had a regular monthly paid job for the last two years and the correct amount was taken in tax over that period.

I am now paid weekly not monthly.

@RumJerrySailorRum
I think you may be correct...although for some reason HMRC are actually showing the agency as a past employer in my online tax account so they should already know that.

Sigh!

What is your tax code? Does it end with an L and is there a W1 or M1 at the end of it.

Without actually seeing all the exact figures including gross pay to date it’s impossible to say.

Is there someone in payroll who can look at your p45 from the last job and your payslip from this job and explain it to you.

Also do you have any Benefits in Kind at this job eg company car, taxable expenses, private healthcare etc?

You can submit a revised expected total income number for the tax year on the hmrc website/app. I had an out of cycle bonus once and for some reason they thought that was my new monthly income and my tax free amount vanished. It sounds like they may think you have 2 jobs here - they are always very eager to get every penny they are owed the minute they think it's due so this is not uncommon.

@Comefromaway the tax code is 1263LX. There are no benefits from this job such as healthcare.

The X means it’s an emergency tax code. Often referred to as a Week 1 basis.

Unlike a BR code where you are taxed on every penny it means that your tax is not cumulative at the moment. Your personal allowance is divided by the number of weeks in the year rather than taking account of what you have earned so far in the year.

Did you give your current employer your P45 from the agency?

@Comefromaway yes I gave them the P45, clearly they have made a cock up somewhere. Will take it in again tomorrow.

Thanks to everyone who replied.

They haven’t necessarily cocked up. It’s very common for this type of tax code to be given when you change jobs until after tue first RTI is submitted. Hmrc usually update it fairly quickly.

I gave them the P45, clearly they have made a cock up somewhere

It happened to me recently and I just called the tax office. They sorted it instantly, changed my tax code while I was on the phone and I got a big tax refund just before Christmas.