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Why are they taxing me???

17 replies

taxmisery · 24/10/2019 11:18

I started a job in September after not working for the previous 6 months (student). Salary is 19k. I don't understand why I am being taxed as for the first half of the tax year I didn't earn anything, so I won't go over my personal allowance for this tax year. I don't want to wait a year to get this back. Can anyone advise?

OP posts:
Queenlatifahsleftboob · 24/10/2019 11:23

It's irrelevant that you paid no tax the first half of the year. When it's gets to April and the current tax year comes to an end, you will get a rebate if you have paid too much.

You are being taxed as if you have aren't that dum each and every month. It will even itself out when you get a rebate.

It's the same if your salary is under the tax allowance and, for example one month you do a lot of overtime to take you over the tax free allowance. You then pay tax on the sum over and above it, and if eligible, get a rebate at end of tax year.

taxmisery · 24/10/2019 14:40

Yeah the only problem is they don't send you a rebate until six months after the tax year ends, and I really need the money now not in a year's time. They used to do a calculation around May/June and now it's sept/Oct. How annoying.

OP posts:
FrangipaniBlue · 24/10/2019 14:45

You can claim the refund online straight after the end of the tax year, it's paid with 10 days not 6 months.

Csleeptime · 24/10/2019 14:48

You can call hmrc and ask them to change your tax code so you stop getting taxed.

Sunseed · 24/10/2019 16:26

If you're paid through PAYE it should work itself out before the end of the tax year, but check what tax code you are on/what your Payroll is using.

BritInUS1 · 24/10/2019 16:28

Call HMRC and ask them to amend the tax code your employer has for you

BritInUS1 · 24/10/2019 16:28

Did you receive benefits for the first 6 months of the year? Some of these are taxable

coffeeforone · 24/10/2019 16:36

Call HMRC and explain. They should send a cumulative tax code straight through to your employer and you'll get a full rebate on your next payslip.

coffeeforone · 24/10/2019 16:38

0300 200 3300

NeedAnExpert · 24/10/2019 16:38

Is your tax code correct?

SchoolNightWine · 24/10/2019 16:39

It sounds like your employer has put you on an emergency tax code (1250L M1), which will not take into account your nil income for the first half of the tax year.
Ring HMRC on 0300 200 3300 and ask that they amend your tax code. They should advise your employer electronically and it will be sorted within a couple of days (if your payroll department is efficient!).
You'll then receive a tax refund when your next wage is paid.

modgepodge · 24/10/2019 16:45

You definitely shouldn’t have to wait TIL the end of the tax year to sort it. I’m on mat pay, and in April and May received 90% of my normal wages and paid tax. In June I was on statutory, which (if you’re on it all year) is below the tax threshold, and I got a rebate of some of the tax I’d paid the first two months. Not all of it and I’ve had a decreasing refund each month, not really sure how it works. But I’ve definitely had the refund within the tax year.

Did you fill in a form saying you’d not worked the first part of the year? I’ve filled those in when starting work after uni. In the absence of that or a p45 from a previous job it is likely you’re on emergency tax. Speak t9 your payroll dept first, fingers crossed they can sort it!

FabbyChix · 24/10/2019 17:05

You need to compete a new starter checklist and give it to your employer.

userxx · 25/10/2019 13:56

Your tax code needs to be amended to 1250L not 1250L X. Call HMRC and they will sort it for you.

VanGoghsDog · 25/10/2019 17:22

Did you tick the right box on the joining form - one of the boxes is 'this is my first job this tax year'.
If you did then payroll should not be taxing you.

But a call to HMRC will sort it out and take into account what you have paid so the refund comes within your next pay.

You can check your tax code etc online, it's worth being set up to do that.

yearinyearout · 26/10/2019 09:32

Thanks for all the replies, yes I appear to be on an emergency tax code as it ends LM1, I will ring hmrc.
Not been receiving benefits.
When I've worked before and was owed refund, I tried to claim it back online (had done it before the year before and requested a calculation) and it just came up with "if you are owed any tax it will be calculated automatically, you do not need to request a calculation" and it took them until September to do it.
Hopefully they will sort it asap.

confusedandemployed · 26/10/2019 09:36

With RTI submissions no one should have to wait til the end of the tax year any more. Once your tax code is sorted you should get a rebate.

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