Massive tax cock up, what to do?

[xjay1337]

Usually I pay around £600-£700 tax per month in my current job.


I received only £1200 pay this month bit shocked which is nowhere near enough to even cover my basic outgoings and about half what I usually get, so had a poke around.

I haven't gotten my payslip yet....joys.....but I used the HMRC tax checker thing and I paid £1558.33 in tax and £292.40 in NI !!

EG last month paid £617.66 in tax and £358.40 NI

So basically half of my salary has gone leaving me unable to cover our bills for this month. I am not aware of any changes to my tax code (haven't had any letters through or anything).

What can I do? I'm trying to find HMRC number but that's impossible ..........

[anonymous-user]

I'd be speaking to my payroll people ASAP if I were you.

[xjay1337]

garyhun said:

I'd be speaking to my payroll people ASAP if I were you.

Conveniently on holiday .... all of my bills go out on the 1st.

[anonymous-user]

xjay1337 said:

garyhun said:

I'd be speaking to my payroll people ASAP if I were you.

Conveniently on holiday .... all of my bills go out on the 1st.

There's no way HMRC, assuming the issue started at their end, will be able to sort this out in 24 hours.

Is there no one in your finance dept that can help as that's going to be the quickest solution I would imagine.

Other than that, try to organise an emergency overdraft with your bank for the dd payments.

[Eric Mc]

When will you receive your pay slip? There's no reason why you shouldn't get it at exactly the same time you get paid.

[Sarnie]

Sounds more like an employer issue? Surely HMRC only deduct what is instructed by the payroll people?

[xjay1337]

I found a number for HMRC.
On hold for a while but the lady was actually very helpful.

Apparently HMRC thought that my current job was a secondary income. It turns out my tax code was D0 (only just changed hence why they totally fked me over).

HMRC weren't told that I had quit my previous job. Although I got a P45 from my last place when I was made redundant, I handed this to my new company early March when I started. As far as I was aware everything was done on my end..

My work have been great, the ops director is offering me a "loan" and I'm just working out exactly what my shortfall is and I'll ask for the difference.


I am not sure who's fault it is but can confirm my previous tax code was 820L (last job) - 870L (current, end of April payslip) and I was paid on D0 code for May!!!!

Edited by xjay1337 on Tuesday 30th May 16:09

[Eric Mc]

xjay1337 said:

I found a number for HMRC.
On hold for a while but the lady was actually very helpful.

Apparently HMRC thought that my current job was a secondary income. It turns out my tax code was D0 (only just changed hence why they totally fked me over).

HMRC weren't told that I had quit my previous job. Although I got a P45 from my last place when I was made redundant, I handed this to my new company early March when I started. As far as I was aware everything was done on my end..

My work have been great, the ops director is offering me a "loan" and I'm just working out exactly what my shortfall is and I'll ask for the difference.


I am not sure who's fault it is but can confirm my previous tax code was 820L (last job) - 870L (current, end of April payslip) and I was paid on D0 code for May!!!!

Edited by xjay1337 on Tuesday 30th May 16:09

Sounds like HMRC lying through their teeth to me. The fact that you received a P45 from your previous employers means categorically that they will have notified HMRC that you left that employment. The whole system is automated now. The creation of the P45 automatically means that the fact you have left the employment gets automatically submitted to HMRC when the next payroll is run by the employer. That is the whole point of the Real Time Information system that has been compulsory for employers for a number of years.

The fault is almost definitely with HMRC's system in that it failed to pick up the fact that the new employee showing up on your new employers payroll run was the same person who appeared as a departing employee on your previous employer's payroll run.

HMRC and IT makes me shudder.

Your new employer should have pointed out to you that they had been given a D0 code for you so at least you might have realised something wasn't right.

[xjay1337]

Eric Mc said:

Sounds like HMRC lying through their teeth to me. The fact that you received a P45 from your previous employers means categorically that they will have notified HMRC that you left that employment. The whole system is automated now. The creation of the P45 automatically means that the fact you have left the employment gets automatically submitted to HMRC when the next payroll is run by the employer. That is the whole point of the Real Time Information system that has been compulsory for employers for a number of years.

The fault is almost definitely with HMRC's system in that it failed to pick up the fact that the new employee showing up on your new employers payroll run was the same person who appeared as a departing employee on your previous employer's payroll run.

HMRC and IT makes me shudder.

Your new employer should have pointed out to you that they had been given a D0 code for you so at least you might have realised something wasn't right.

Hi Eric,
I'm not sure, but that sounds plausible. I did indeed get a P45 from my previous employer, and handed in the relevant part to my new company.

I've had 2 pay checks from this company without issue getting my usual amount and being taxed the correct amount. I believe this latest payslip (end of May) was the first of the new tax year. Our payroll person confirmed my code was D0 which I found online but obviously was over looked.

I'm supposed to get around £2500 after tax, and I received £1200. My work have transferred me an additional £1200 of their own ££, which is appreciated. Although I'm trying to find if they can re-run payroll to get it sorted out properly, as I have another opportunity I wish to persue so need to hand my notice in, but feel a bit of a cock doing it now after they're helping me out!

Edited by xjay1337 on Wednesday 31st May 13:27

[Eric Mc]

It's almost definite that they won't rerun the payroll because the employer is obliged by law to use the Tax Code that has been issued by HMRC EVEN IF THE CODE IS WRONG. Also, from a practical point of view, re-running a payroll for a given month is not feasible.

The procedure is to get the Tax Code changed as soon as possible and then, when the next payroll is run, the tax calculations will automatically self correct.

[xjay1337]

Eric Mc said:

It's almost definite that they won't rerun the payroll because the employer is obliged by law to use the Tax Code that has been issued by HMRC EVEN IF THE CODE IS WRONG. Also, from a practical point of view, re-running a payroll for a given month is not feasible.

The procedure is to get the Tax Code changed as soon as possible and then, when the next payroll is run, the tax calculations will automatically self correct.

Thanks Eric.

Appreciate your input.

One final question, now that my tax code has been corrected, I should recieve my usual income PLUS the over payment in return? So £2400+£1200 (or there abouts) or is it spread out over the tax year?

[Chester draws]

Very much doubt you'll get any tax back.

Best you can hope for is not to pay any tax this month, (and next).



I had a similar issue in the last couple of months.

Started second job (both just below my threshold), they split my code between the two employers. Perfect.
The next month they gave all of my code to the new employer which meant I paid tax on everything from my first employer.

I went online, filled out the forms and it was corrected a few weeks later.

[xjay1337]

Chester draws said:

Very much doubt you'll get any tax back.

Best you can hope for is not to pay any tax this month, (and next).



I had a similar issue in the last couple of months.

Started second job (both just below my threshold), they split my code between the two employers. Perfect.
The next month they gave all of my code to the new employer which meant I paid tax on everything from my first employer.

I went online, filled out the forms and it was corrected a few weeks later.

OK - Thanks, could be worse I suppose. Just difficult with the situation I am in at the moment.
Thanks again.

Glad your situation was sorted, this is the first time I've had such a major cock up at HMRC.

[Eric Mc]

If you overpaid any tax because the Tax Code was wrong, the next payroll run which uses the CORRECT tax code should automatically correct for any over calculation of tax in the previous payroll runs. That means you SHOULD get any overpaid tax back in your next salary.

[schmunk]

Eric Mc said:

If you overpaid any tax because the Tax Code was wrong, the next payroll run which uses the CORRECT tax code should automatically correct for any over calculation of tax in the previous payroll runs. That means you SHOULD get any overpaid tax back in your next salary.

...as long as it's been changed to a cumulative code, and not a Month 1 / Week 1 code...

[Eric Mc]

The OP didn't mention anything about his code being Month 1 or Week 1.