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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:
Worldgonecrazy · 28/04/2022 09:01

I had similar and it was caused by my previous employer not telling Hmrc I had left, so hmrc thought I was earning two salaries and put me on the highest tax rate. It took two months to sort.

keep checking your tax code on the hmrc website and speak to payroll /hr to see if they can do a loan to help you out.

Original poster
ListenLinda · 28/04/2022 09:26

The tax code on HMRC is correct, I checked it this morning.
it is the YTD figures that has screwed it all over.

OP posts:
Shgytfgtf111 · 28/04/2022 09:30

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?

Yeah thats the issue. they have included your P45 figures in this years calculation but the tax year only started on 6 April. The PAYE system calculates tax on the basis that you will earn that amount each pay period (so in this case, month) for the remainder of the tax year. It thinks you earn £16137 per month.

Its your payroll departments fault. Ask if they can rerun payroll. They might be able to.

Oblomov22 · 28/04/2022 10:16

BritinUs:
"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."

I agree totally with BritinUS.
Don't accept the advance payment she them telling you to phone HMRC. This is a copp out by them. They have made a mistake and it needs correctly.

Don't phone. Email so that you've got a paper trail of evidence. Ask them to correct it, it may require a re-submission. They won't want To do this and may try and fobb you off, do not let them, politely insist.

Original poster
ListenLinda · 28/04/2022 11:12

Wont they need to resubmit, whether they advance or not? I don’t understand what the difference would be.

OP posts:
Oblomov22 · 28/04/2022 12:27

No. An advance is just an offer, to help you out, an internal thing.

A re-running of the payroll, after making an adjustment to the payroll, and then re-submitting it to HMRC, is a totally different thing.

Have you both emailed and rung them? Is your manager actioning/chasing it on your behalf? If you don't get it agreed today, realistically it probably won't happen, because tomorrow 5pm is the latest that most companies will submit. (I am mid running 3 payrolls right now).

Original poster
ListenLinda · 28/04/2022 13:20

So they asked me to call HMRC and let them know what HMRC advise to do, as it’s not a usual situation for them. They have raised it with payroll and marked it as urgent.

So now it’s a waiting game.

OP posts:
GiltEdges · 28/04/2022 13:24

ListenLinda · 28/04/2022 13:20

So they asked me to call HMRC and let them know what HMRC advise to do, as it’s not a usual situation for them. They have raised it with payroll and marked it as urgent.

So now it’s a waiting game.

As per PP, it's not your job to ring HMRC and HMRC can't action anything just based on a call from you anyway. Your employer needs to resubmit this month's payroll to correct their error.

Original poster
ListenLinda · 28/04/2022 13:28

And make a faster payment for the difference. I know, I didn’t ring HMRC, I just relayed what I knew from above.

OP posts:
Shgytfgtf111 · 28/04/2022 13:28

ListenLinda · 28/04/2022 13:20

So they asked me to call HMRC and let them know what HMRC advise to do, as it’s not a usual situation for them. They have raised it with payroll and marked it as urgent.

So now it’s a waiting game.

HMRC dont pay you, the company do. They cannot do anything unless you are on the wrong tax code and even then they can only issue the correct tax code for the employer to use on the next pay day. HMRC only give tax refunds when the tax year has finished.

Its 100% on your payroll dept to resolve it, its them that have done it wrong.

Shgytfgtf111 · 28/04/2022 13:30

'They' = HMRC!

Original poster
ListenLinda · 28/04/2022 13:30

It all just seems a bit … meh. I don’t feel like there is any urgency from them, which is infuriating as its over £800 we are talking about.

OP posts:
Shgytfgtf111 · 28/04/2022 13:33

Yeah I have often found that with companies. Managers etc arent too bothered because they dont have anything to do with payroll and payroll people dont always know what to do to correct an issue.

If anyone needs to call HMRC, its the payroll dept to speak to the employers section if they dont know how to correct their issue. They need to do something for you today for you to hopefully get a payment before Tuesday.

Shgytfgtf111 · 28/04/2022 13:34

Can you speak to payroll directly?

Original poster
ListenLinda · 28/04/2022 13:39

I asked for their details but HR havent given me them, they said they are looking into it. I dont know when to ask for an update

OP posts:
skyeisthelimit · 28/04/2022 13:47

If you were not due a payday before 5 April 2022 then they should not have added figures from last years P45. whoever did that needs retraining in payroll if they can make such a stupid mistake!

You have been taxed at such a huge amount because it thinks that you earned last years money in this tax year because they input that into their payroll.

It is down to the employer to ring HMRC to sort it out. They might allow them to refile without the P45 information, but either way, it is up to them to sort out.

If you have to wait for it to be refunded in next months pay then your employer should give you an advance.

Original poster
ListenLinda · 28/04/2022 13:56

Nothing in my account and no word from payroll yet.

OP posts:
nearlyspringyay · 28/04/2022 14:07

Speak to HMRC direct. I work for a stupidly large business, HR is all online via who knows where and the advice is always speak to them direct. You'll spend hours on hold though.

Oblomov22 · 28/04/2022 14:08

I'd chase this afternoon. Don't leave it till tomorrow.

The fact they even asked you to ring HMRC speaks volumes about their blasé attitude and incompetence. Skye is right, this is a really stupid mistake, payroll basics.

Oblomov22 · 28/04/2022 14:09

No. Please ignore nearlyspring. It is not your job to ring HMRC. This is an error that the person processing the payroll has made and it needs to be corrected by the payroll department.

Original poster
ListenLinda · 28/04/2022 14:12

It makes me wonder if this really doesn’t happen very often or if the HR admin really doesn’t have a clue.
I’m so worried I can’t concentrate on much, knowing that I either right now pay my direct debits, and not my rent. Tbh after the council tax has gone out, I can’t pay my rent anyway.

what an absolute mess.

OP posts:
Original poster
ListenLinda · 28/04/2022 14:14

nearlyspringyay · 28/04/2022 14:07

Speak to HMRC direct. I work for a stupidly large business, HR is all online via who knows where and the advice is always speak to them direct. You'll spend hours on hold though.

HMRC can’t amend anything on my say so. Otherwise everyone would be ringing them every month.
HR wanted to know what they would advise so I relayed the information from the wonderful posters here, but I haven’t had a response/update yet.
i emailed again 30 minutes ago

OP posts:
Oblomov22 · 28/04/2022 14:18

Ring your manager?

Original poster
ListenLinda · 28/04/2022 14:21

@Oblomov22 Do you think it would help?

OP posts:
TheDoveFromAboveCooCoo · 28/04/2022 14:23

HMRC can't do anything. It's your payroll team that need to rectify this. They need to roll back April payroll and remove the P45 previous pay and tax and recalculate.

(I'm a payroll manager)

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