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Original poster

Paid 50% Tax, please help.

67 replies

ListenLinda · 28/04/2022 02:38

Hi, I really hope someone is awake because I am freaking out!

i changed jobs on 28th March and have received my first payment from my employer today.

I was due about £1850 after tax and NI, but my current wage slip showed by my current TD was £2171, fine, there is a bit if back pay.
tax code is 1257L, as I gave them my P45 from my last job and I assumed that was all okay.

my wage has gone into the bank today and it is seriously seriously short. I checked my wage slip and I have been deducted £1200 in Tax alone.
how can this be right?! Who is at fault? I checked HMRC and they are the figures they have sent to thwm but it can’t be right.

can they get this corrected today? What I have been paid wont cover rent and all my direct debits are going to bounce!

can someone talk me down and help me because I can’t go back to sleep for panicking!

thanks

OP posts:
Original poster
ListenLinda · 28/04/2022 05:13

Upon triple checking, the tax paid is £1044 and my wages are short by £833.

OP posts:
ChessieFL · 28/04/2022 05:17

What tax code have they used? This should be shown on your payslip. It might be that you gave them the P45 too late for them to apply it to this payrun so you might be on an emergency tax code.

Unfortunately nobody here can tell you when they can sort it, usually with tax you have to wait until the next payslip but if you’re in dire need they might be able to give you an advance on the next pay but only your company can answer that.

BritInUS1 · 28/04/2022 05:17

What was the gross pay?

Is there a M1 or cross on the payslip after the tax code?

Original poster
ListenLinda · 28/04/2022 05:48

My tax code is 1257L. Gross pay was £2171.79.
deductions were
NI - £167
pension - £81
tax - £1044

it is a dire need, its over half my wage short and i have £750 rent and £500 worth of DD payments due. i can’t afford to wait until next pay day.

OP posts:
ImplementingTheDennisSystem · 28/04/2022 06:01

I'm in the same boat OP. I moved job in December and for Dec, Jan, Feb, March I didn't realise that I was on an emergency tax code that I think has left me a few hundred short each month. My April pay is £1000 short as I've been put onto a new, wrong tax code which charges me 45% tax and gives me no personal tax free allowance.
HMRC has confirmed that I'll get the April shortfall in my May pay. Then I have to wait for a cheque at some point for the Dec-March shortfall. I said I've been left seriously short, is there nothing I can do to speed this up?! His answer was basically "computer says no..."

Seaography · 28/04/2022 06:10

Contact your payroll ASAP.

What strikes me is that your tax is also your monthly tax free allowance. I wonder if they have input the wrong figure?

WeeFinbar · 28/04/2022 06:10

I would guess that they have processed you P45 in the wrong tax year somehow. By doing this their software may be assuming that you earned all your 21/22 salary in April 22.

For example, say your P45 stated £20k of income on leaving your old role, which would have all fallen in the prior tax year. If payroll applied the P45 in the wrong tax period, you would have been deemed to have earned £22k in April. Being the first month in the tax year would have your cumulative pay only being eligible for 1/12 of the personal allowance at this stage, so it would like like you have been pushed into additional tax territory. (It would would also reduce for the tax you had actually paid on the P45).

In short, ask payroll what they did with the P45 as this looks like the most likely error to me.

Are there any year to date values on the payslip?

RicStar · 28/04/2022 06:12

You need to talk to your employer OP. Something is clearly wrong, that tax code would not generate that amount of tax on those earnings. You need to find out what has happened and why, and what your employer can do to help, the only person who can explain is whoever generated the payroll.

Paragon86 · 28/04/2022 06:15

Payroll have cocked up badly. They have not used your tax code - and I assume that code of 1257L is shown on your payslip alongside the rest of the figures you have quoted.

They have deducted your pension contributions from gross pay, which is correct. But they have then taxed the rest at 50%. Play merry hell and get them to run your pay through the software again. Today!

Also they may have included your old P45 figures in their calculations , however that P45 relates to the old tax year. Any payroll run after 5 April 2022 is in the new tax so should not include your P45 figures.

This may be too much information, but:
Usually, when moving jobs, new employer includes P45 figures as previous pay & tax, and system continues to run smoothly. But sometimes the system estimates your new annual pay as the P45 pay figure plus this month’s pay multiplied by 12. If this then shows your gross over £100,000 you start loosing your tax code allowances.

BritInUS1 · 28/04/2022 06:17

You need to speak to your payroll department

What is your year to date gross pay on your payslip? Is the P45 entered in April instead of March?

BritInUS1 · 28/04/2022 06:19

I have calculated it should be the following, assuming no other income

Gross - £2,171.79
Pension - £81.00 - your figure
Tax - £224.60

Net pay just under £1,700

waitingpatientlyforspring · 28/04/2022 06:20

WeeFinbar · 28/04/2022 06:10

I would guess that they have processed you P45 in the wrong tax year somehow. By doing this their software may be assuming that you earned all your 21/22 salary in April 22.

For example, say your P45 stated £20k of income on leaving your old role, which would have all fallen in the prior tax year. If payroll applied the P45 in the wrong tax period, you would have been deemed to have earned £22k in April. Being the first month in the tax year would have your cumulative pay only being eligible for 1/12 of the personal allowance at this stage, so it would like like you have been pushed into additional tax territory. (It would would also reduce for the tax you had actually paid on the P45).

In short, ask payroll what they did with the P45 as this looks like the most likely error to me.

Are there any year to date values on the payslip?

This is the most likely answer. Ring your payroll department first thing (most will have someone working from 8am). If it is their error which it looks like, then they should be able to process you an advance for the shortfall.

Hmrc do make a lot of errors and in that instance it can't be sorted until they send correction but this really doesn't sound like a Hmrc error.

Oblomov22 · 28/04/2022 06:38

Hope you get it sorted. Don't be fobbed off and told it will be sorted next month, ask for it to be corrected this month, because it's wrong!

Original poster
ListenLinda · 28/04/2022 07:37

YTD says £16,137.
i earnt £14.047 last tax year from my previous employer.

is this the issue? How is it corrected and cant they sort the short fall today?

OP posts:
Lazydazey · 28/04/2022 07:44

I had something similar, it turned out on my P45 my old company had put the NI paid in the tax paid box, so I ended up making a huge catch up tax payment on my first payslip. I pointed out their error, said I had bills to pay and they sent an additional payment by transfer. Good luck

PortiaFimbriata · 28/04/2022 07:45

They might not be able to sort out their error today, but if you're upfront with them about the fact that this leaves you short with your rent then they should be able to give you an emergency loan. You've done absolutely nothing wrong, it's a large sum of money, and they've cocked up badly, so it's OK for you to say politely but firmly that you expect them to fix it.

Original poster
ListenLinda · 28/04/2022 07:47

I will ask them to correct it and transfer the payment today, if it has to be tomorrow then so be it

OP posts:
InkySquid · 28/04/2022 08:28

Yes, it looks like they've processed your P45 in the wrong year. Your YTD earnings shouldn't include anything earned in your last role as that was in the previous financial year.

BritInUS1 · 28/04/2022 08:39

ImplementingTheDennisSystem · 28/04/2022 06:01

I'm in the same boat OP. I moved job in December and for Dec, Jan, Feb, March I didn't realise that I was on an emergency tax code that I think has left me a few hundred short each month. My April pay is £1000 short as I've been put onto a new, wrong tax code which charges me 45% tax and gives me no personal tax free allowance.
HMRC has confirmed that I'll get the April shortfall in my May pay. Then I have to wait for a cheque at some point for the Dec-March shortfall. I said I've been left seriously short, is there nothing I can do to speed this up?! His answer was basically "computer says no..."

There is nothing HMRC can do about the shortfall, but speak to your employer and see if they can give you an advance

Even if HMRC issue a new tax code for you today, your employer will have closed and submitted the payroll for the month now

Original poster
ListenLinda · 28/04/2022 08:39

Thanks all, HR have said they will look into it and come back to me ASAP but I have asked for contact details of pay roll.

OP posts:
BritInUS1 · 28/04/2022 08:40

Oblomov22 · 28/04/2022 06:38

Hope you get it sorted. Don't be fobbed off and told it will be sorted next month, ask for it to be corrected this month, because it's wrong!

This is not always possible

However, speak to your employer about a possible advance, which they can deduct from your May pay when it gets sorted out

Motnight · 28/04/2022 08:42

Good luck Op.

Original poster
ListenLinda · 28/04/2022 08:53

They have said they can make an advance payment where they make up the difference and it will be taken out of next months pay, by which time I will have recieved a tax rebate for the amount deducted this month. And I should call HMRC to let them know.

is that right?

OP posts:
BritInUS1 · 28/04/2022 08:55

ListenLinda · 28/04/2022 07:37

YTD says £16,137.
i earnt £14.047 last tax year from my previous employer.

is this the issue? How is it corrected and cant they sort the short fall today?

Yes this is the issue, they have processed your P45 incorrectly, they need to roll back the payroll for this month and correct your entries and then submit an amendment

BritInUS1 · 28/04/2022 08:56

ListenLinda · 28/04/2022 08:53

They have said they can make an advance payment where they make up the difference and it will be taken out of next months pay, by which time I will have recieved a tax rebate for the amount deducted this month. And I should call HMRC to let them know.

is that right?

They need to correct the year to date figures, it's not up to you to call HMRC - this is something that they have done and it needs to be corrected on their side

They have screwed up (assuming your P45 is dated before 5 April 2022 and your previous employer has not prepared it incorrectly)