Can anyone help with a tax issue please?

[Toffeecakes]

I started a new job in September, there were a few weeks where I was paid from both this job and my previous job but I handed in my P45 in November and have only had the one job since then. My tax code changed suddenly in January and my tax doubled, I have emailed work about it and am still awaiting a response.

In the meantime I have set up a Government Gateway account to see if there was anything there to explain the high tax - my previous employment isn't listed there but I have definitely paid tax and have all payslips/P45 and P60 to show this. I think it has been taken into account because my tax is so high now. If anything it looks like they think I am earning a salary from both employers rather than both.

The odd thing is that the tax seemed correct until I handed in my P45 - it has gone up since then. The salary from the job I finished was £36k and the new job is £40k.

Can anyone help? What do I actually need to do to fix this?

Thank you and apologies if this is confusing

You need to call HMRC - a quick phone call should sort it out as it looks like they're assuming you've got two ongoing jobs. Perhaps they havn't received/processed the P45 details from your old employer.

0300 200 3300

Pointless talking to your employer about it - they can't change your tax code, they have to apply whatever tax code they are given by HMRC.

Call hmrc. Is it possible full personal allowance was allocated simultaneously to both employments in the overlap?

Because you had a period with two incomes, they will increase your tax code because it looks like your earnings have doubled and you were on track to underpay your tax. Did your second employer tax you at basic rate before receiving your P45, or did they give you the personal allowance?

It will sort itself out and you’ll get a rebate - to be honest I’d be surprised if it gets sorted by the end of the tax year now. Definitely call HMRC though and aim to make sure that you have the correct tax code from April. Mine was adjusted for this year due to a similar issue, and I just received a letter telling me what my tax code will be from April (back to normal!)

Thank you for the replies - I'm off work next week so I will give them a call, you've all put my mind at rest that this happens to other people so at least I know it can be rectified. I haven't had any problems before, I was on an emergency tax code for one month (September) but it seemed ok after that.

Thank you again.

What code have they put you on to?

Good luck with getting HMRC to sort it out OP. My DS has only just sorted out his tax problems from last summer! He was given so much incorrect info by HMRC and was fobbed off so many times that I stood over him in his last phone call and told him to demand to speak to a supervisor! He did eventually get a call from a manager who actually seemed to know what she was talking about and it all got sorted. Issues could all have been avoided if they'd listened to him and got his tax code right between 2 jobs last June!

I was on 1250L and now it’s 984T

A T code is a split code as if you have earnings elsewhere so definitely give them a call - they're still thinking you have 2 jobs

Thank you for the clarification Q, I wasn’t sure what that T meant so that would make sense that they think I have another job. I’m going to give them a ring on Monday, I thought the tax account thing I had to set up would have given me some answers but seeing as it doesn’t mention my previous employment (but does mention a company I did some casual work for) I’d started to worry. It created more questions than answers!

bigbluebus I’m sorry to hear your DS had such a difficult time with HMRC, that must have been so frustrating.