Income Tax Change

[coldel]

Hi guys, before I call up the HMRC I need a bit of schooling on income tax. I changed jobs 6 weeks ago (start of June) to something higher paid. I was on a standard tax code of whatever it was 1250L - I changed jobs, so started getting paid more and HMRC said I will owe a tonne of extra income tax so have cut my code in half down to 599LX. In my rather simplistic mind, given I will be paying a % of my income in tax, it will go up anyway as I am being paid more. So why am I owing them more tax on top of the more tax im paying already?

[AndyAudi]

Besides more cash Do you now have a company car?

[coldel]

Nope, I have had a pay increase from one job to the next of around 15%

[ro250]

Did you provide your P60 when you started your new job? I didn't when I changed jobs last time (my error) and I underpaid tax (as they assume you have not earned anything in the current financial year to date).

[coldel]

I filled out the appropriate forms I dont remember providing a P60 - I have logged into my HMRC account and it shows them acknowledging that I have paid tax during employment. But maybe thats the issue...something has gone wrong there.

[Abdul Abulbul Amir]

ro250 said:

Did you provide your P60 when you started your new job? I didn't when I changed jobs last time (my error) and I underpaid tax (as they assume you have not earned anything in the current financial year to date).

P45?

[APontus]

Speak to HMRC.

[CharlesElliott]

You probably got paid twice in on month or similar so HMRC assumed that you are going to have that happen every month.

If you log into the HMRC website / app you can advise HMRC of the expected income from your employment.

[Jonathan27]

Occasionally HMRC can assume that you still have the old job as well as the new one. There for tax you on the assumption that you have two salaries.

[CubanPete]

Speak to HMRC.

They are the most intelligent and good to communicate with of all the government agencies.

[coldel]

Thanks all, yes it must be a mistake thinking I am running two salaries that pop me over a threshold or something.

[ro250]

Abdul Abulbul Amir said:

ro250 said:

Did you provide your P60 when you started your new job? I didn't when I changed jobs last time (my error) and I underpaid tax (as they assume you have not earned anything in the current financial year to date).

P45?

Yes! Currently have P60s on my mind!

[APontus]

CubanPete said:

Speak to HMRC.

They are the most intelligent and good to communicate with of all the government agencies.

My sarcometer is pinging loudly on that one, however my experience of HMRC when questioning these kind of things is that they've been really helpful.

No idea if that goes out the window with pandemic stuff, but in the past I've had no cause for complaint.

[coldel]

Was on hold a fair bit but got through to someone - yes the answer is they thought I was earning both salaries ongoing so slapped me with a rather sizeable tax bill. Put me back to a normal code and will get a rebate - took about 30 mins on the phone but its sorted!

Thanks all.

[rigga]

Had tax code issues when I retired in march, and then had some pay that was withheld from me paid last month both times I rang HMRC, got through relatively quickly, and was easily explained and sorted by the person I spoke to, painless, which can't be said from other experiences with government bodies.

[APontus]

coldel said:

Was on hold a fair bit but got through to someone - yes the answer is they thought I was earning both salaries ongoing so slapped me with a rather sizeable tax bill. Put me back to a normal code and will get a rebate - took about 30 mins on the phone but its sorted!

Thanks all.

Nice one!

[CubanPete]

APontus said:

CubanPete said:

Speak to HMRC.

They are the most intelligent and good to communicate with of all the government agencies.

My sarcometer is pinging loudly on that one, however my experience of HMRC when questioning these kind of things is that they've been really helpful.

No idea if that goes out the window with pandemic stuff, but in the past I've had no cause for complaint.

I wasn't being sarcastic.

I've spoken to them a few times, and they have been great.

DVLA however...

[CaptainHindsight]

Hypothetically, without making the phone call to square up the double pay issue, presumably after the end of the tax year you'd have automatically got a sizeable rebate in any event. Or does it not work like that?

[anonymous-user]

coldel said:

Was on hold a fair bit but got through to someone - yes the answer is they thought I was earning both salaries ongoing so slapped me with a rather sizeable tax bill. Put me back to a normal code and will get a rebate - took about 30 mins on the phone but its sorted!

Thanks all.

They are pretty good at getting things right when you phone and explain, which makes it more frustrating that they send out ridiculous tax codes. If you don’t spot it quickly enough , you end up with half the pay you’re expecting and then get hassle with refused direct debits etc and bank charges.

[anonymous-user]

If you haven't already, download the HMRC app and you can see your assessments there.

I've given up trying to work it out, despite no change in circumstances, and being in the same job for 6 years, each year I owe the tax man money....

Good luck op in your quest