Discussion
Muffster said:
Very true mate.
It seems that HMRC do a lot of estimating and guess work when working out how much they might tax you. Useful!
And make lots of mistakes! I remember one year where there were around six entries on the calculation of the tax code notice sent to me, five of which were incorrect... It seems that HMRC do a lot of estimating and guess work when working out how much they might tax you. Useful!
jock mcsporran said:
Easiest just to call up HMRC and ask them how they've reached that conclusion to issue a K code. They've always been quite helpful when I've queried it.
No point guessing and getting bothered about it.
Should show how they arrive at it on your tax code notice? I think you can even look this up on line. I just had a K code where due to an internal operating division transfer; my company car BIK was counted twice (13k!) and they threw in 2 lots of fuel card too which I don't have, something to do with the wording of reimbursing fuel & buying back private miles & the HMRC monkey not reading the form properly.No point guessing and getting bothered about it.
I almost gave birth when I opened the letter but give HMRC their due, less than 1 minute on hold and the bloke I spoke to was on the ball & had it corrected but still took a hit on this months wages though
shep1001 said:
Should show how they arrive at it on your tax code notice? I think you can even look this up on line. I just had a K code where due to an internal operating division transfer; my company car BIK was counted twice (13k!) and they threw in 2 lots of fuel card too which I don't have, something to do with the wording of reimbursing fuel & buying back private miles & the HMRC monkey not reading the form properly.
I almost gave birth when I opened the letter but give HMRC their due, less than 1 minute on hold and the bloke I spoke to was on the ball & had it corrected but still took a hit on this months wages though
Sounds like a similar situation. I almost gave birth when I opened the letter but give HMRC their due, less than 1 minute on hold and the bloke I spoke to was on the ball & had it corrected but still took a hit on this months wages though
So, will you expect to pay less tax when you get paid again and therefore recover it in a certain way? is that how it works.
I've been paid 3 times since starting with the new company. Got the same gross amounts for salary and company car allowance. But....paid 3 different amounts of tax, 3 different amounts of NI and 3 different net amounts.
oop north said:
And make lots of mistakes! I remember one year where there were around six entries on the calculation of the tax code notice sent to me, five of which were incorrect...
It make my blood boil even more when earlier on this year the former head of HMRC (who previously had 2 shockingly piss poor appointments at the Immigration Service and then the Border Agency) was shuffled of elsewhere with a Damehood. Yet the small man on the street is having his pants pulled down. It's disgraceful.Muffster said:
Sounds like a similar situation.
So, will you expect to pay less tax when you get paid again and therefore recover it in a certain way? is that how it works.
I've been paid 3 times since starting with the new company. Got the same gross amounts for salary and company car allowance. But....paid 3 different amounts of tax, 3 different amounts of NI and 3 different net amounts.
Yes, as I am PAYE but I have an underpayment restriction of about 1k to clear so not sure if my overpayment is used to clear my underpayment from last year.So, will you expect to pay less tax when you get paid again and therefore recover it in a certain way? is that how it works.
I've been paid 3 times since starting with the new company. Got the same gross amounts for salary and company car allowance. But....paid 3 different amounts of tax, 3 different amounts of NI and 3 different net amounts.
shep1001 said:
Muffster said:
Sounds like a similar situation.
So, will you expect to pay less tax when you get paid again and therefore recover it in a certain way? is that how it works.
I've been paid 3 times since starting with the new company. Got the same gross amounts for salary and company car allowance. But....paid 3 different amounts of tax, 3 different amounts of NI and 3 different net amounts.
Yes, as I am PAYE but I have an underpayment restriction of about 1k to clear so not sure if my overpayment is used to clear my underpayment from last year.So, will you expect to pay less tax when you get paid again and therefore recover it in a certain way? is that how it works.
I've been paid 3 times since starting with the new company. Got the same gross amounts for salary and company car allowance. But....paid 3 different amounts of tax, 3 different amounts of NI and 3 different net amounts.
In the early 90's I used to do the payroll for a 1200 person company, so got to grips with PAYE quite early in my working life
The PAYE system is just that - a system. No-one is making calculations based on opinions, only data. Its all public information:
https://www.gov.uk/topic/personal-tax/income-tax
https://www.gov.uk/income-tax-rates/current-rates-...
and its just computer software that is making the calculations based on data you and your employer provide about your earnings.
It is in your interests to educate yourself on the PAYE system, and then make sure HMRC are provided with the correct data to calculate your tax. Be sure to double check the coding notice when they send it through and make sure their maths are correct based on what you have told them. Do this each year or when anything changes related to your employment.
You start off with £11000 tax free for the year in your first employment/income source and taxable benefits come off that amount (company cars, private health, fuel cards etc) and tax relief items (as below) get added on. The end result is a tax code e.g. 459L means you can earn £4590 before you start paying tax. This calculation is sent to you with a coding notice, your employer just gets the coding notice, not the explanation of the calculation.
Hence, your employer does not know how your tax code is calculated. That is between you and the tax office. Your employer just receives the coding notice and puts it in their payroll software. So the only person who can be responsible for you paying the correct tax is yourself. Sometimes mistakes are made, but usually this is a case of missing information, circumstances changing, assumptions being made about communications. You assume HMRC knows about something, but they dont. HMRC assume your data is unchanged from last year, and the year before, and so on, until you tell them of a change the computer makes the calculation with whatever data it has on you. That could mean you still have a company car, fuel card etc when you dont. An ex-employer forgot to tell them your car went back etc....
What is also good to understand are the tax relief items you might be able to claim as an employee that can help increase your tax free allowance. Things like; personal pension contributions, charitable giving, home office allowance, business mileage claims. Keep a record of everything and do a self assessment tax return and claw some tax back there.
Thats pretty much it, ring your tax office, register online and take control of your own tax affairs
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