HMRC woes.

the maoster:

xichrisxi:
Unfortunately it doesn’t matter if your employer has cocked up they will still want the money from you.

You are absolutely correct in saying that mate. Fortunately we have a great union so I’m hoping that if my employers have cocked up I can get them to pay it! Stranger things have happened where I work.

Our place cocked to a couple of years ago,and everyone got a letter from HMRC asking for around £60 and the company footed the bill…hopefully your place do too.

Might be worth logging in at gov.uk/personal-tax-account to check that there isn’t any income on there you’re not expecting there to be; or otherwise any relevant messages from HMRC?

It’s almost certainly nothing to do with tax bands - that gets done without retrospective deductions/bills.

I used to work for Severn Trent and although it’s not as much as you, I had a letter from HMRC saying I owed £400 in tax.

When I enquiried they said it’s because Severn Trent under paid on my tax on one months pay :unamused:

They altered my tax code to take an extra £30 a month until it was paid back.

My Mrs has been clobbered the same. She’s been at the same employer for 12 years.

My good lady had a similar letter from Tesco it said as she gets paid monthly and this tax year there is 14 pay days not 13 you will get taxed as normal on the extra pay day and as such there is a shortfall of tax paid by £182.
Which is due at the end of this tax year next March either in a lump sum or pay back monthly.

commonrail:
Although now I think about it…there was some kind of fork up with my tax code,at the start of the(tax) year.
Can’t remember exactly what it was about,but wages woman said it would soon be sorted.
Temporary change in tax code…rings a bell.

I had the same thing happen at the beginning of the last tax year. The magic HMRC tax computer decided that this year I was going to earn over £48k. All my tax relief goes on my military pension, and the first I found out about the change in my tax code was when I only got paid half of my normal monthly amount on my pension.

A quick call to HMRC and it was all sorted for the following months payment. Haven’t changed jobs in three years so not sure how they worked out my earnings.

commonrail:

the maoster:

commonrail:
Maybe you’ve earnt too much and gone into the higher tax band.

To go into the higher tax band a person would need to earn roughly £880 per week (I may well be mistaken) but it was always my belief that you paid the higher rate from day one on any amount over that £880 as opposed to say paying high rate tax from February or whatever.

Again I may be mistaken about that.

I would’nt expect them to take a higher rate from the occaisonal £880…but if you keep earning it,they’ll eventually change your tax code.
Just a guess though

Your tax code doesn’t change just because your income rises above the higher tax rate threshold - even if the increase is permanent.

Your tax code specifies the amount you can earn tax free, not the rate(s) at which you are taxed on the remainder.

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Ah right

commonrail:

the maoster:

commonrail:
Maybe you’ve earnt too much and gone into the higher tax band.

To go into the higher tax band a person would need to earn roughly £880 per week (I may well be mistaken) but it was always my belief that you paid the higher rate from day one on any amount over that £880 as opposed to say paying high rate tax from February or whatever.

Again I may be mistaken about that.

I would’nt expect them to take a higher rate from the occaisonal £880…but if you keep earning it,they’ll eventually change your tax code.
Just a guess though

They do take it if you go over for that month. Its complicated how they do it, but basically per week the first £221 is tax free, the next £644 is at 20% and over that is 40%, but this also depends where you are in the tax year as any weeks previous under the threashold are taken in to account so you may earn over the limit but not pay 40%. This happen every week, but say you go over £865 for one week and under the next thats taken into account. We have this every year as we get a bonus paid on our first pay cheque of the new tax year so get clobbered majorly for tax on that pay slip, but by the end of the year its balanced back our. When you get your P60 it all works out correct

Do you get paid Night out money that exceeds the amount allowed tax free? I got caught with this a few years ago after my employer at the time submitted his accounts, the HMRC came after me for the tax that should have been paid on the excess night out money.
I don’t know what the allowance is now as I am long since retired :smiley:

I’ve recently had a tax bill off the HMRC for the miserly sum of £10 ffs, it’s going to be taken in stages apparently :unamused: but obviously someone somewhere cocked up but I couldn’t be arsed to chase it up .

These [zb]s are not real, I have paid no tax for the last 6 weeks, so, went onto my account at HMRC, they say I have paid too little this year, so they will change my code from April 18 to recoup it, why the [zb] didn’t they just keep taxing me as before, bunch of fannies.

Sapper

sapper:
These [zb]s are not real, I have paid no tax for the last 6 weeks, so, went onto my account at HMRC, they say I have paid too little this year, so they will change my code from April 18 to recoup it, why the [zb] didn’t they just keep taxing me as before, bunch of fannies.

Sapper

Why have you paid no tax for six weeks? Did they change your tax code or did your employer make a mistake?

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Check with them what they “THINK” your income was for the period .
If you did a couple of days agency work or something one month they often think you do this every month .
I had this one year and had to get confirmation from the agency for earnings .
They just seem to pull figures out of thin air .

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For decades…

If you were PAYE there was never a problem. Year in year out my tax and NI was paid and there were never any problems other than the occaisional small tax rebate.

Now and over the last few years, it seems HMRC can’t do simple sums and end up stinging people with large and difficult to pay tax bills.

I smell a rat somewhere.

Think it says it all when there is a website named hmrc is [zb]

Raymondo, changed jobs in November an paid emergency tax since then, got my code sorted 6 weeks ago, got an £800 rebate and paid no tax for 6 weeks, looks like no tax till end of financial year, then they’ll change my code again to make up the underpayment, place is a farking joke, worse than DVLA.

Sapper

When you get a chance have a read of the letter as it will explain what has been underpaid it just takes a bit of reading - I’ve had many times over the years sometimes good sometimes not so good.

PAYE is a bugger as it’s supposed to be easy and done for you yet ultimately it’s still your fault if it is wrong! Go figure…

Ah - Emergency Tax Code (normally because you were unable to provide a P45 for the new employer). That’ll usually throw up some issues.

yourhavingalarf:
For decades…

If you were PAYE there was never a problem. Year in year out my tax and NI was paid and there were never any problems other than the occaisional small tax rebate.

Now and over the last few years, it seems HMRC can’t do simple sums and end up stinging people with large and difficult to pay tax bills.

I smell a rat somewhere.

I suspect that in reality, the reason there were “never any problems” was that mistakes, shortpayments etc were simply lost among all the paper records. Now the whole system is on computer, with every individual’s payments logged against them there is no equivalent of records “falling down the back of a filing cabinet”.