HMRC wont use my new tax code - Racking up a tax bill.
Discussion
Hi folks,
At new year I received a tax bill for some £700 due to my tax code apparently being incorrect for the benefits we get at work, mainly medical I believe, this was for tax year 2011-2012, however in Feb of this year I got another one for about the same amount for the tax year 2012-2013.
They gave me a new tax code to recoup the £1400 odd due, however I have received this months pay cheque and my code is as it was. Speaking with the accounts manager, she explained that she cannot change the tax code until HMRC tell her to do so when they do PAYE stuff each month, apparently it comes up on the system if anyone's code changes.
I am a bit worried about this as I would rather they took the cash out making me about £100 a month worse off, but at least it would be paid off this year.
Should I be phoning HMRC to ensure they change this as I don't want it to happen again and then be another £700 under taxed.
Seems bloody backwards though, HMRC aren't taking enough, but don't update the system to take it back.
At least they didn't ask for a lump sum!
Any advice on what I should be doing here?
Cheers
At new year I received a tax bill for some £700 due to my tax code apparently being incorrect for the benefits we get at work, mainly medical I believe, this was for tax year 2011-2012, however in Feb of this year I got another one for about the same amount for the tax year 2012-2013.
They gave me a new tax code to recoup the £1400 odd due, however I have received this months pay cheque and my code is as it was. Speaking with the accounts manager, she explained that she cannot change the tax code until HMRC tell her to do so when they do PAYE stuff each month, apparently it comes up on the system if anyone's code changes.
I am a bit worried about this as I would rather they took the cash out making me about £100 a month worse off, but at least it would be paid off this year.
Should I be phoning HMRC to ensure they change this as I don't want it to happen again and then be another £700 under taxed.
Seems bloody backwards though, HMRC aren't taking enough, but don't update the system to take it back.
At least they didn't ask for a lump sum!
Any advice on what I should be doing here?
Cheers
Hi folks, good advice all, However a funny situation meant it looked like nothing has happened.
It seems my new tax code has been applied, however we got a cost of living increase that worked out to give me exactly the same monthly take home after having my extra tax taken, this caused all kinds of confusion with me and the finance controller until we had all the bits of paper in front of us to see what had happened as we both assumed it wouldn't be exactly the same.
So happy days, She is worse off as she got a 3 year bill to deduct due to medical benefit being taxed incorrectly by HMRC (I was the same).
Scary that it can go a while without HMRC taking what its supposed to, but ah well, happy days.
It seems my new tax code has been applied, however we got a cost of living increase that worked out to give me exactly the same monthly take home after having my extra tax taken, this caused all kinds of confusion with me and the finance controller until we had all the bits of paper in front of us to see what had happened as we both assumed it wouldn't be exactly the same.
So happy days, She is worse off as she got a 3 year bill to deduct due to medical benefit being taxed incorrectly by HMRC (I was the same).
Scary that it can go a while without HMRC taking what its supposed to, but ah well, happy days.
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