£14 Tax deducted from £86.40 earnings via shambolic employer
Discussion
Hi
My partner has recently taken a part time job, working 6 hours a week, £7.20 an hour, at a local company, walking distance etc.
What could possibly go wrong?
Despite filling in a form for the employer stating that this is her only employment this tax year, 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, Tax code 82T W1. Only got the 'wage' slips today, after various delays and questions not being answered.
So she has earned £72.40 after tax, on earnings of £86.40, which is £6.03 an hour, which is not minimum wage!
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. But employer now says my partner must ring HMRC to get an emergency tax code...despite filling a form out stating this is her only job this tax year (which logically means just over £10k can be earned free of tax this tax year).
Ringing HMRC may well get an answer, but will she continue being taxed if some idiot decides to, and more importantly will she have a refund from HMRC, or will she have to wait until end of Tax year because of some fools who don't know what they are doing/make it up as they go along?
Your comments are greatly appreciated.
My partner has recently taken a part time job, working 6 hours a week, £7.20 an hour, at a local company, walking distance etc.
What could possibly go wrong?
Despite filling in a form for the employer stating that this is her only employment this tax year, 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, Tax code 82T W1. Only got the 'wage' slips today, after various delays and questions not being answered.
So she has earned £72.40 after tax, on earnings of £86.40, which is £6.03 an hour, which is not minimum wage!
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. But employer now says my partner must ring HMRC to get an emergency tax code...despite filling a form out stating this is her only job this tax year (which logically means just over £10k can be earned free of tax this tax year).
Ringing HMRC may well get an answer, but will she continue being taxed if some idiot decides to, and more importantly will she have a refund from HMRC, or will she have to wait until end of Tax year because of some fools who don't know what they are doing/make it up as they go along?
Your comments are greatly appreciated.
Thanks for replies, but I'm really not getting how an employer can advertise a job that pays £7.20 an hour, bearing in mind the employee (my partner) has given all information that the employer has asked for, for the employee to only get paid £6.03 an hour?
If she has told (via a form) the employer it is her only job this tax year, why tax her? Why ask? If she'd had/got another job I could understand the 'confusion', but not in this instance.
Contrast this to a job I started recently whereby I was not taxed on earnings just under £200, so got the advertised rate (minus a small deduction of NI).
There was no emergency tax codes. Our situations are exactly the same.
To be frank, getting a refund after April is no use now, hence why the job was taken.
We are 6 months into the tax year, so she is 'only' going to be earning a quarter of her tax-free allowance in this tax year. Why tax her?
If she has told (via a form) the employer it is her only job this tax year, why tax her? Why ask? If she'd had/got another job I could understand the 'confusion', but not in this instance.
Contrast this to a job I started recently whereby I was not taxed on earnings just under £200, so got the advertised rate (minus a small deduction of NI).
There was no emergency tax codes. Our situations are exactly the same.
To be frank, getting a refund after April is no use now, hence why the job was taken.
We are 6 months into the tax year, so she is 'only' going to be earning a quarter of her tax-free allowance in this tax year. Why tax her?
TooMany2cvs said:
BlimeyCharlie said:
Thanks for replies, but I'm really not getting how an employer can advertise a job that pays £7.20 an hour, bearing in mind the employee (my partner) has given all information that the employer has asked for, for the employee to only get paid £6.03 an hour?
She is being paid £7.20/hour.It's just that she's paying tax on it. That's not the job's fault or the employer's fault.
Pay is ALWAYS quoted as before tax, because the tax paid depends on the employee's situation. And, in this case, the employee has not provided sufficient information to be paid without tax being withheld.
Having just rang HMRC myself, I can report they (HMRC) have sent the employer a 'new' tax code, 1100L, and they have also stated that the tax paid so far will be paid back by employer, as opposed to having to wait until end of this tax year. to apply for refund.
InitialDave said:
BlimeyCharlie said:
There was no emergency tax codes. Our situations are exactly the same.
Read the links in my post above."W1 (week 1) and M1 (month 1) are emergency tax codes."
"Tax code 0T can also be used as a temporary code. It means you don’t get any Personal Allowance you’re entitled to until your tax code is updated."
What was your tax code for that £200 job?
Hence my confusion when my partner, in exactly the same circumstances as me, is taxed as being 'unaccounted for in the system' despite filling in the same kind of forms as I did, basically accounting for myself this tax year.
The employer is shambolic (in my opinion) because 'it' does not pay unless reminded, after only 2 weeks of work, and can't explain anything to do with deductions made from earnings.
My opinion is that the form my partner filled-out is probably sitting somewhere gathering dust, hence the 'panic' with deductions.
A good start!
Thanks also for posting the information about tax codes and when/why they may be used.
Hopefully this 'situation' has now been resolved (see a post from 5-10 minutes ago I wrote) but I do wonder how people can 'run' a business without understanding anything to do with accounts, tax etc etc.
Soon be Christmas.
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.
What usually happens is quickly after employer has submitted rti a proper code comes back within 2-3 weeks.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 said:
You've scheduled a meeting for £14? Don't you value your time? 
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?
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.
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.
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. 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...
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.
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