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Challenging a tax calculation (P50)?

3 replies

8dpwoah · 11/10/2021 11:27

Made redundant at end of August, contacted HMRC to do P50 (having a baby so not planning on working this tax year). Received SMP in a lump sum so last pay packet was quite substantial, I've earned £29,500 this year and paid £6,500 tax. No other sources of income or complications to the calc, all PAYE. Went through all the Q's with an advisor as well.

I've had a cheque today for just over £1000. That can't be right, can it? Haven't had the calculation letter yet but I was expecting more like £3000?

I shall contact them but just wanted to check if it's me missing something obvious or if I'll have to wait til April for another lump, or something? When you've been PAYE all your career it's a bit daunting questioning the tax man!

OP posts:
PatriciaHolm · 11/10/2021 12:21

Is the £6500 include NI? In which case it's probably about right - this reckons you should have paid about £5700 in tax and NI.

www.moneysavingexpert.com/tax-calculator/

CinderFuckingRe11a · 11/10/2021 12:30

Income tax due is £29,500-£12,570 = £16,930@20% = £3,386

8dpwoah · 11/10/2021 12:46

No I haven't included NI in my tax calc... I knew I'd lose out a smidge on that as well by having a lump sum payment but the logistics made it worth it.

Anyway, managed to speak to an absolutely excellent member of staff at HMRC just now who has corrected it for me so just for anyone future searching similar, somewhere along the line (and it's likely me) I have made an end of employment claim as opposed to an end of year claim. So the end of employment calculation at this point in the tax year was correct but I'm sure I said on the form and to the first advisor that I had no plans to work rest of tax year (being 39 weeks pregnant!). But either way this chap has solved my problem and the difference is on its way (which matches yours and my calc @CinderFuckingRe11a).

Very impressed with their help desk process especially given it was quite likely my mistake in the first place!

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