Whats going on with my tax?

[boringlyboring]

I have tried calling HMRC all week but I just get an automated ‘we can’t deal with your call now’ and it ends.

I left a full time job start of November. My p45 says that I earned 11845 and tax paid 787.80 tax code 1185L

New job started in 19th Nov, part time, weekly pay, week in hand. I get £238 before deductions.

Tax code on my payslips from current job is 1185L

With my first pay, I received a tax rebate of £166.20, but now my online HRMC account tells me I have underpaid. They have reduced my personal allowance to £8820.

My tax code, according to HMRC is 882LX. They have all the other details correct, earnings from previous job and expected earnings from this one.

It says my total tax due for this year is £3030, which is wrong even on my previous 22k salary!

I assumed emergency tax to begin with, but as I say my payslips so far are correct and they have the correct details re earnings.

From how I’ve worked it out, I’ve already more or less paid enough tax for the year based on what I will have earned by April next year.

Can anyone shed some light (or atleast tell me if there is a secret phrase or key to press to get past the auto gate keeper!)

I have managed to get through before and found the staff extremely helpful. But you do have to hang on for a long time. I just left it ringing on speaker as I worked. Dont call at lunchtime.

I'm afraid I dont understand tax at all. So cant comment on the content of your query. But I had a problem a year ago when they made a mistake and started taking more than 50% more out of my salary a month - and I hadnt even changed job. they fixed it straight away and paid me back the next month.

My guess would be that rather than thinking you've started a new job, they think this is a second job and are taxing it accordingly. I think that unfortunately you are going to need to speak to a real person at HMRC about it... I wonder if when you got set up on your new payroll they didn't tick the P45 option for some reason.

Your new employer will have used the tax code from your P45, assuming there was not too much of a gap between employments. Emergency tax is actually a 'week 1' code and is used if you have no P45.

After your employer paid you, they will have uploaded the file to HMRC which then (often) generates a new tax code. In this case lower than your previous one.

Are you happy with the gross pay (both on your previous P45 and your current payslips)?

If so, then your earnings and tax from them will sort themselves out without too much issue.

When you get a tax code change, there should be a letter explaining how this code was arrived at - or at least some calculations online.

Can you speak to someone in your finance dept at work who might be able to assist?

As far as you know, are your previous tax affairs up to date?

(I am a finance director btw)

I would hang on as long as it takes, but I can’t even get on hold.

It’s the option when you have to say what you’re calling for, then there’s a message about their website, asks for NI number. Then the automated message says ‘we cant deal with your call’ and just hangs up.

rather than thinking you've started a new job, they think this is a second job and are taxing it accordingly.

I didn’t even think of this, it makes sense actually. Old salary plus current pay would mean I’m liable for around the amount they say.

I’ll have to try again tomorrow and just keep trying different phrases until it lets me through

Hi topcat

Yes, I’ve never had any other issues with tax. When I registered for the online account this year (out of curiosity!), it said I have paid the correct tax to date, previous years included.

I haven’t had any notification of a tax code change, but online it says ‘you may be paying too little tax’

So far, I have only had 2 pay packets, one with the rebate of £160ish and this weeks seems ok. It does say online that they’ll be deducting the ‘additional’ amount I owe by April 19.

The woman who deals with wages (small company so no finance or HR teams as such) works remotely and not always available during my hours at work.

I have been trying to contact them since October.
Gave up my company car in April and have been paying far too much tax ever since.
No success with phone calls
Created an online account but it wouldn't let me change my details.
Eventually tweeted them constantly and now in receipt of an address to write to them.
Every town used to have a tax office and generally it was easy to find which national centre dealt with your tax.
Useless service - but they probably want it that way as there will be fewer and fewer tax officers.

I would try saying something like "wrong tax code" to the automated system. That's basically the issue here, and they don't like people being on the wrong code incase they aren't paying enough tax.

I’m in a similar position. Worked full time Til the end of July then went part time. They wrote to me to tell me my tax code had changed but this was about 3 weeks after I saw it had changed online. The ‘x’ on your tax code means your tax will be reviewed at at the end of the tax year and I was told that if I had paid too much I would get this back next year. I’ve already paid nearly twice as much tax as I should have with the drop in annual income. Once my tax code went through to the new company the amount changed accordingly.

You had definitely underpaid tax in your previous role and then you got a rebate which made matters worse. Impossible to say how things should stand as you have not indicated what your gross earnings can be expected to be for the year.

Your total income tax on your previous level of earnings would not be £3k, although tax and NI would be.

To be honest, I would just let it work through, these things will correct themselves. If it is wrong at the end of the year, then it will also correct itself.

If you are able to indicate what you expect to earn this tax year then I am sure it will be possible for someone to better comment.