Tax advice needed

[lazylump72]

Hi Everyone
My husband has been going through his weekly payslips for the last 2 months having been signed on to a new agency,He was checking for discrepencies following a chat with a colleague,Now when his diductions are listed it says pensions,NI etc but the tax is left empty,It has terrified the pants off us as we dont want a huge tax bill but can anyone tell me if when you are taken over doing the same job in the same place but employed by a different company there is a reason why he wouldnt be paying tax when he is paying everything else? In a bit of a panic here and any help or reassurance would be greatfullly recieved,
Thank you

Has he worked at all since April? Did he give the agency his P45?

HI Yes he has been working and paying tax as standard right up until the last agency lost their tender and a new agency was appointed in november 2020.They did the p45 stuff all correctly as I understand.

In effect he never stopped working he just carried on and all that changed for him was a new contact in the workplace to represent the new company.It all is very worrying we wouldnt have even picked this up really had it not been by chance last night,

The only reason he wouldn’t be paying tax is if he is not earning enough or had over paid tax, although that would trigger a refund not a blank space.

What was his YTD gross earnings and deductions on his P45?

What is his gross salary now?

If he is earning enough to pay tax, it would be wise to calculate what his tax should have been and put this money aside as it will definitely trigger a tax bill.

Did you not notice a change in take home pay?

My sister had something similar happen when she moved from being a contractor to permanent with the same company. The flip happened half way through the tax year and payroll dropped the ball with the tax code and P45 on the transfer. They applied the standard 1250 tax code from the start of her new job not taking into consideration her prior role. So, in the short term she had 2 lots of tax free allowance. HMRC did a rec at the end of the tax and demanded the underpaid tax by adjusting her tax code for the following year.

I would suggest maybe doing a quick calculation on your year to date figures to see if the tax paid in total is the right ballpark.

Thank you all so much for the replies..due to covid 19 he has been working less shifts than usual but the pay and hours worked all matched at the right rate and and all the pension contributions and NI etc were all listed and amounts deducted as they should have been, It is a zero hours contract if that makes any difference but I did also sign over my married tax allowance to my husband too as i didnt use mine so maybe it is a case of him not earning enough I dont know.For example he earned say 248 ,00 one week then another 680 .00 still no tax deducted I just dont understand.Something else that I thought of was that we claimed universal credit 4 months ago we have had 2 payments from them of 156 .00 per month and on the other 2 months we go t zero due to us earnign over the cut off level.Would I be right in thinking that if the UC team check with HMRC earnings every month then we are on the right track? Would it be worth ringing HMRC and asking them? I dont know what to think it just all seems very odd to me..surelyif you earn 600 plus a week you have to be paying tax maybe not so much on 250 odd but some surely?

@lazylump72

Thank you all so much for the replies..due to covid 19 he has been working less shifts than usual but the pay and hours worked all matched at the right rate and and all the pension contributions and NI etc were all listed and amounts deducted as they should have been, It is a zero hours contract if that makes any difference but I did also sign over my married tax allowance to my husband too as i didnt use mine so maybe it is a case of him not earning enough I dont know.For example he earned say 248 ,00 one week then another 680 .00 still no tax deducted I just dont understand.Something else that I thought of was that we claimed universal credit 4 months ago we have had 2 payments from them of 156 .00 per month and on the other 2 months we go t zero due to us earnign over the cut off level.Would I be right in thinking that if the UC team check with HMRC earnings every month then we are on the right track? Would it be worth ringing HMRC and asking them? I dont know what to think it just all seems very odd to me..surelyif you earn 600 plus a week you have to be paying tax maybe not so much on 250 odd but some surely?

You need to do the sums. You can post on here and somebody can do it for you, if you don’t want to do that there are online tax calculators you can use to check figures.

Yes earning over £600 a week should result in tax, the weekly tax free threshold is about £240. Tax is cumulative and if there is a week of lower earnings the tax will adjust itself.

Put away about 20% of earnings for the tax adjustments and that will more than cover the bill. You will get the option of paying a bill or having under payments collected through next years tax code.

Thank you for the sound adivce.I cannot begin to tell you how grateful I am for your kindness and clarity and amazingly speedy responses.A query has been sent to his agency to check all is in order as it should be and hopefully we will get a response soon.My will has been strengthened to keep a hold on pur savings incase of any shocks later on down the line! All I need to know is we are paying what we should when its due and I am a happy bunny again! Have no problems at all with paying any deductions,will gladly do that just it all seemed so odd to me and just not right somehow, Thank you again amazing ladies.

Thank you for the sound adivce.I cannot begin to tell you how grateful I am for your kindness and clarity and amazingly speedy responses.A query has been sent to his agency to check all is in order as it should be and hopefully we will get a response soon.My will has been strengthened to keep a hold on our savings incase of any shocks later on down the line! All I need to know is we are paying what we should when its due and I am a happy bunny again! Have no problems at all with paying any deductions,will gladly do that just it all seemed so odd to me and just not right somehow, Thank you again amazing ladies.

Quick update ..rang HMRC and got it sorted out.It was a mistake on the partof the agency and now have a new tax code with and adjustment and estimate in place for what we could owe them which thankfully is not a lot so its a huge relief and thankful it was caught early! Thank you again for your help today.

Yes he has been working