Wrong tax code on payslip...

[Orchid1]

Long story short, started a new job in December of last year. My tax code was updated in April with a reduced tax free allowance as I apparently owe some tax from a previous year.

I've noticed that my last couple of payslips still show the normal tax code S1257L (i'm in Scotland), however the correct amount of tax looks to have been taken as if I was on the new tax code.

Is the tax code on payslips just entered by employers and therefore just an admin error or does it mean my employer is using the wrong tax code?

[_CrazyIvan_]

The code on your payslip will be the one used for the calculation

Employer might not have received the new tax code for you or haven't checked their portal for a new code for you. Worth speaking to your employers payroll section to ask them to check for a new code for you, might help to send them a copy of the code change that you received.

Edited by _CrazyIvan_ on Tuesday 3rd June 22:42

[Countdown]

Orchid1 said:

Long story short, started a new job in December of last year. My tax code was updated in April with a reduced tax free allowance as I apparently owe some tax from a previous year.

I've noticed that my last couple of payslips still show the normal tax code S1257L (i'm in Scotland), however the correct amount of tax looks to have been taken as if I was on the new tax code.

Is the tax code on payslips just entered by employers and therefore just an admin error or does it mean my employer is using the wrong tax code?

If the tax code says 1257 that’s how much tax will have been taken. You can’t show one tax code on the payslip and use a different code to deduct tax

HR/Payroll download tax code changes from HMRC’s website each month. Have you received a coding notification from them recently?

[Orchid1]

_CrazyIvan_ said:

The code on your payslip will be the one used for the calculation

Employer might not have received the new tax code for you or haven't checked their portal for a new code for you. Worth speaking to your employers payroll section to ask them to check for a new code for you, might help to send them a copy of the code change that you received.

Edited by _CrazyIvan_ on Tuesday 3rd June 22:42

Thanks, the strange thing is I never got a letter or email noting the new tax code. I only found out after checking the HMRC app. Also seems a bit strange that the tax being deducted does look correct it's just the code on the payslip seems wrong.

[Orchid1]

Countdown said:

If the tax code says 1257 that s how much tax will have been taken. You can t show one tax code on the payslip and use a different code to deduct tax

HR/Payroll download tax code changes from HMRC s website each month. Have you received a coding notification from them recently?

That's the thing, I haven't. I only knew the new tax code after checking the HMRC app i've got on my phone.

[soad]

Emails tend to end in a junk folder, so not easily spotted. Unless manually checked so to speak.

[Orchid1]

soad said:

Emails tend to end in a junk folder, so not easily spotted. Unless manually checked so to speak.

Always keep and eye on my spam folder on both my personal and work email. Nothing in either. No letter/email/message on my HMRC account either.

[Doofus]

Bear in mind that it is your responsibility to ensure the correct tax code is used, not your employer's.

[Orchid1]

Turns out I'm a fool and HMRC did notify me by email in February doh! Will speak to payroll tomorrow then. Thanks all.

[MustangGT]

As others have pointed out, the tax deducted will be based on the tax code printed on the payslip. The payroll system cannot calculate tax on a different basis to that which is entered for you, the payslip prints what is in the system for you.

This is month 2 of the tax year, what was on your April payslip? Don't forget all calculations under PAYE are cumulative, so a change in code may have a different effect than expected.

[Doofus]

MustangGT said:

This is month 2 of the tax year, what was on your April payslip? Don't forget all calculations under PAYE are cumulative, so a change in code may have a different effect than expected.

Not necessarily.

[Countdown]

Orchid1 said:

Turns out I'm a fool and HMRC did notify me by email in February doh! Will speak to payroll tomorrow then. Thanks all.

Possibly a silly question but was that definitely a coding notice for 2025/26 and not an amendment for 2024/25?

[Orchid1]

Countdown said:

Possibly a silly question but was that definitely a coding notice for 2025/26 and not an amendment for 2024/25?

Definitely a coding notice however I spoke to HMRC this morning to confirm my code and they've changed it again and moved me to "X" non cumulative tax code as apparently I owe a little bit more than they originally thought. When I left my old job in December they paid me a full month's salary however I paid back the overpayment in the new year so don't know if this is what's tripping things up or my new employer hadn't set things up correctly when I first started.

[MustangGT]

Doofus said:

MustangGT said:

This is month 2 of the tax year, what was on your April payslip? Don't forget all calculations under PAYE are cumulative, so a change in code may have a different effect than expected.

Not necessarily.

I know that but deemed it too much information that was unnecessary.

[MustangGT]

Orchid1 said:

Definitely a coding notice however I spoke to HMRC this morning to confirm my code and they've changed it again and moved me to "X" non cumulative tax code as apparently I owe a little bit more than they originally thought. When I left my old job in December they paid me a full month's salary however I paid back the overpayment in the new year so don't know if this is what's tripping things up or my new employer hadn't set things up correctly when I first started.

In general you will be set up based on the P45 information that you should have given them some time around your joining date. If you do not have a P45 the process includes the possibility of HMRC instructing your employer to put you on BR (basic rate) or Emergency tax. This can be seen from your payslip.