£14 Tax deducted from £86.40 earnings via shambolic employer

£14 Tax deducted from £86.40 earnings via shambolic employer

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Discussion

2 sMoKiN bArReLs

30,254 posts

235 months

Saturday 22nd October 2016
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thatsprettyshady said:
Okay here's some help: don't be hasty with blaming employer, they just submit details to the big bad government tax computer so are bound to abide to what it comes up with tax-wise.
yes What usually happens is quickly after employer has submitted rti a proper code comes back within 2-3 weeks.

Red Devil

13,060 posts

208 months

Sunday 23rd October 2016
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BlimeyCharlie said:
My opinion is that the form my partner filled-out is probably sitting somewhere gathering dust, hence the 'panic' with deductions.
I think you had the answer right there.

BlimeyCharlie said:
She has asked her employer what is going on (politely), who also 'forgot' to pay her the first week until reminded, and she blames an accountant.
Sounds like the employer outsources the payroll function. If so, that is not uncommon and a frequent source of problems with information flow/exchange. It's not exactly a new phenomenon either. I had a similar issue 25 years ago.

BlimeyCharlie

Original Poster:

903 posts

142 months

Wednesday 2nd November 2016
quotequote all
2 sMoKiN bArReLs said:
thatsprettyshady said:
Okay here's some help: don't be hasty with blaming employer, they just submit details to the big bad government tax computer so are bound to abide to what it comes up with tax-wise.
yes What usually happens is quickly after employer has submitted rti a proper code comes back within 2-3 weeks.
Yes, I agree and thanks again for all comments, but the employer has had the correct/amended code several weeks now and still the deductions continue...

So if HMRC instructs the employer to deduct nothing, as per tax code they've had for several weeks, then what is this classed as?
I believe a 'meeting' is scheduled for today, assuming the employer remembers to attend.

Oakey

27,565 posts

216 months

Wednesday 2nd November 2016
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You've scheduled a meeting for £14? Don't you value your time? biggrin

BlimeyCharlie

Original Poster:

903 posts

142 months

Wednesday 2nd November 2016
quotequote all
Oakey said:
You've scheduled a meeting for £14? Don't you value your time? biggrin
Answering your question, yes, my partner values her time, that is the whole point. The 'meeting' is at work, during 'work' time.
Her 'valued' time at work is taxed wrongly by £14.00 per week, each week so far.

£14.00 a week is £728.00 a year.
Maybe read the topic in more detail before you post stuff?







Dan_M5

615 posts

143 months

Wednesday 2nd November 2016
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Are you that short of money that £14 per week is going to make a massive issue?

The tax code will get sorted and you'll get either a rebate or a following month you'll get the money back. Think of it as a savings account that makes no extra money...

BlimeyCharlie

Original Poster:

903 posts

142 months

Wednesday 2nd November 2016
quotequote all
The employer now says the employee (my partner) has to confirm with HMRC that the tax code is correct...
And HMRC must also/now send the 'new' tax code to accountant...

The accountant does not employ my partner.
The employer won't give my partner the accountants details, so how can my partner confirm any details with HMRC?

It was explained to me by HMRC that a new code is sent to employer (it was) and tax/deductions will therefore be corrected thereafter. A refund will also be paid by HMRC via employer.

As I said originally, the employer is shambolic. There are other words I can think of too.

BlimeyCharlie

Original Poster:

903 posts

142 months

Wednesday 2nd November 2016
quotequote all
Dan_M5 said:
Are you that short of money that £14 per week is going to make a massive issue?

The tax code will get sorted and you'll get either a rebate or a following month you'll get the money back. Think of it as a savings account that makes no extra money...
She shouldn't be paying tax in the first place, and working for a clueless employer is part of the problem here.
Yes, we are that short of money.
You can donate/lend that trivial amount of £14.00 each week until it is resolved if you like, it all adds up.


Tyre Smoke

23,018 posts

261 months

Wednesday 2nd November 2016
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BlimeyCharlie said:
The employer now says the employee (my partner) has to confirm with HMRC that the tax code is correct...
And HMRC must also/now send the 'new' tax code to accountant...

The accountant does not employ my partner.
The employer won't give my partner the accountants details, so how can my partner confirm any details with HMRC?

It was explained to me by HMRC that a new code is sent to employer (it was) and tax/deductions will therefore be corrected thereafter. A refund will also be paid by HMRC via employer.

As I said originally, the employer is shambolic. There are other words I can think of too.
You are the one, if anyone here who is 'shambolic'. The employer has done exactly what they are legally bound to do with an employee who has no P45 when they start. You are calling the employer 'shambolic' because you have no understanding of how PAYE works, or how employers are required to deduct PAYE. You even thought that the advertised hourly rate was after deductions. I would venture it is you who is ill informed about the subject you are complaining about.


Edited by Tyre Smoke on Wednesday 2nd November 13:48

Oakey

27,565 posts

216 months

Wednesday 2nd November 2016
quotequote all
BlimeyCharlie said:
Answering your question, yes, my partner values her time, that is the whole point. The 'meeting' is at work, during 'work' time.
Her 'valued' time at work is taxed wrongly by £14.00 per week, each week so far.

£14.00 a week is £728.00 a year.
Maybe read the topic in more detail before you post stuff?
BlimeyCharlie said:
she has been taxed £8.60 on £43.20 earnings the first week, Tax code for this was 0T W1, and the second week a bargain £5.40 in tax, from the same £43.20
So is it £14 per week or more like £7 per week?

Countdown

39,863 posts

196 months

Wednesday 2nd November 2016
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Tyre Smoke said:
You are the one, if anyone here who is 'shambolic'. The employer has done exactly what they are legally bound to do with an employee who has no P45 when they start. You are calling the employer 'shambolic' because you have no understanding of how PAYE works, or how employers are required to deduct PAYE. You even thought that the advertised hourly rate was after deductions. I would venture it is you who is ill informed about the subject you are complaining about.


Edited by Tyre Smoke on Wednesday 2nd November 13:48
What he said ^^^^

Red Devil

13,060 posts

208 months

Wednesday 2nd November 2016
quotequote all
Tyre Smoke said:
BlimeyCharlie said:
The employer now says the employee (my partner) has to confirm with HMRC that the tax code is correct...
And HMRC must also/now send the 'new' tax code to accountant...

The accountant does not employ my partner.
The employer won't give my partner the accountants details, so how can my partner confirm any details with HMRC?

It was explained to me by HMRC that a new code is sent to employer (it was) and tax/deductions will therefore be corrected thereafter. A refund will also be paid by HMRC via employer.

As I said originally, the employer is shambolic. There are other words I can think of too.
You are the one, if anyone here who is 'shambolic'. The employer has done exactly what they are legally bound to do with an employee who has no P45 when they start. You are calling the employer 'shambolic' because you have no understanding of how PAYE works, or how employers are required to deduct PAYE. You even thought that the advertised hourly rate was after deductions. I would venture it is you who is ill informed about the subject you are complaining about.
That's as maybe but it does nothing to address the current situation.

OP, the employer is bcensoredg her.

She has no obligation to do anything of the sort. The employee's dealing with HMRC are confidential and no business of the employer. If she is unhappy with the new code she can tackle HMRC about it. If she's happy then she has no need to. Either way the the employer must use the new code. It is mandatory, not a matter for its discretion. Has the employer definitely received it? Yes or no? If it's yes, the obligation is to apply it at the first possible payroll run after receiving it. It makes no difference that the job is outsourced.

The employer cannot tell HMRC what to do. If the employer is registered with HMRC for payroll it is responsible for passing on the information to the accountant. If the accountant is getting is direct through EDI or Payroll Online there is even less excuse. Failure to operate a new code, at the earliest opportunity to the next payroll processing run, means that the incorrect tax becomes an unauthorised deduction for which the employer can be sanctioned - http://huston.co.uk/tax-blog/unpaid-salary-by-empl...

She should have received her own copy of the Notice of Coding - form P2. On it will be a Tax reference. The first 3 digits identify the Tax Office which deals with the employer. The rest after the forward slash identifies the individual employer to HMRC. She should contact the latter to find out exactly what has been sent to the employer and whether it is the same as the one she has. It is possible that the former has not had the W1/M1 flag removed whereas hers doesn't show it. That is a crucial question she needs the answer to because otherwise her deductions still won't be cumulative and the refund won't happen until the flag is removed.

Countdown

39,863 posts

196 months

Thursday 3rd November 2016
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Red Devil said:
She has no obligation to do anything of the sort. The employee's dealing with HMRC are confidential and no business of the employer. If she is unhappy with the new code she can tackle HMRC about it. If she's happy then she has no need to. Either way the the employer must use the new code. It is mandatory, not a matter for its discretion. Has the employer definitely received it? Yes or no? If it's yes, the obligation is to apply it at the first possible payroll run after receiving it. It makes no difference that the job is outsourced.
From what I've understood the Employer IS using the emergency code. A new code hasn't been issued. It's not down to the Employer to chase HMRC for a new/correct code, it;s for the employee.

OP - your other half needs to liase with HMRC and get a correct code issued. the employer will also get a copy. The accountant will put this into the payroll system and everything should be corrected.

RYH64E

7,960 posts

244 months

Thursday 3rd November 2016
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As an employer, if I was getting hassle from an employee's partner about HMRC issued tax codes I'd be letting that employee go, life's too short to deal with bolshy workers.

briang9

3,279 posts

160 months

Thursday 3rd November 2016
quotequote all
Countdown said:
Tyre Smoke said:
You are the one, if anyone here who is 'shambolic'. The employer has done exactly what they are legally bound to do with an employee who has no P45 when they start. You are calling the employer 'shambolic' because you have no understanding of how PAYE works, or how employers are required to deduct PAYE. You even thought that the advertised hourly rate was after deductions. I would venture it is you who is ill informed about the subject you are complaining about.


Edited by Tyre Smoke on Wednesday 2nd November 13:48
What he said ^^^^
+1