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Employer Tax Code Error

5 replies

Priority1234 · 24/04/2024 18:56

Hello! Any wise PAYE people about?

I had a new tax code issued on the 18th April. Employer used old tax code on wages paid today which has resulted in a significant overpayment of tax.

Employer claiming they will now use correct tax code from next month.

How do I go about getting this massive overpayment back without waiting until the end of this tax year?

Thank you!

OP posts:
RandomMess · 24/04/2024 19:11

It auto adjusts so you should get back in your next pay packet.

Priority1234 · 24/04/2024 21:12

Thanks both. Will the refund be automatically triggered?

OP posts:
RandomMess · 24/04/2024 21:31

Yes

Chasingsquirrels · 24/04/2024 21:35

As long as it isn't a W1/M1 code (at the end) then PAYE is calculated cumulatively, so in April you get 1/12 of your allowances, in May you get 2/12 and tax is calculated on your income to date then tax paid to date deducted to get the May tax payment. So it corrects each month to whatever the current tax code is.

W1/M1 codes treat each month separately and you just get 1/12 of your allowance each month against that months pay.

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