Discussion
The wife has been paying emergency tax at her new full time job for three pay periods now (monthly) She has brought it up a couple of times but yet again her payslip has this tax code. She gave them her P45 form the old job in November. If the employer won’t do anything about it, is it purely a case of going to HMRC? She’s over £100 down now...
Cheers.
Cheers.
Employer Payroll cannot do anything about it. They will have been notified of the applicable tax code to apply from HMRC or will be using whatever code was on P45 submitted from any previous employment.
She needs to ring the relevant HMRC office and speak to them directly to clarify / resolve this.
Also 834L is not an emergency code. This would be BR. 834L denotes a tax allowance of 8340 per annum
She needs to ring the relevant HMRC office and speak to them directly to clarify / resolve this.
Also 834L is not an emergency code. This would be BR. 834L denotes a tax allowance of 8340 per annum
Edited by Superleg48 on Thursday 24th January 21:51
Superleg48 said:
Employer Payroll cannot do anything about it. They will have been notified of the applicable tax code to apply from HMRC or will be using whatever code was on P45 submitted from any previous employment.
She needs to ring the relevant HMRC office and speak to them directly to clarify / resolve this.
Also 834L is not an emergency code. This would be BR. 834L denotes a tax allowance of 8340 per annum
Thank you, I don’t know what her old tax code was right now but I do know she paid the correct amount of tax there. I’ll have her call up HMRC at the weekend then! There is no reason for her to be on any kind of special tax code. Cheers. She needs to ring the relevant HMRC office and speak to them directly to clarify / resolve this.
Also 834L is not an emergency code. This would be BR. 834L denotes a tax allowance of 8340 per annum
Edited by Superleg48 on Thursday 24th January 21:51
As has been said. a code of 834L means HMRC is only offsetting £8,340 tax allowances against this salary. The full tax allowance for 2018/19 should be £11,850. Therefore, HMRC has decided to reduce your wife's tax allowances by £3,510.
They obviously have a reason for doing this but it might take a phone call to HMRC to find out why they are reducing her tax allowances by so much.
It could be because they are trying to collect unpaid tax from an earlier year or her previous employment. Or it could be because she receives some sort of taxable Benefit in Kind (such as Health Insurance) from her new employer.
If she is a basic rate taxpayer, losing £3,510 of allowances is costing her £702 per annum (£3,510 @ 20%)
If she is a higher rate taxpayer the tax loss is ££1,404.
They obviously have a reason for doing this but it might take a phone call to HMRC to find out why they are reducing her tax allowances by so much.
It could be because they are trying to collect unpaid tax from an earlier year or her previous employment. Or it could be because she receives some sort of taxable Benefit in Kind (such as Health Insurance) from her new employer.
If she is a basic rate taxpayer, losing £3,510 of allowances is costing her £702 per annum (£3,510 @ 20%)
If she is a higher rate taxpayer the tax loss is ££1,404.
Eric Mc said:
As has been said. a code of 834L means HMRC is only offsetting £8,340 tax allowances against this salary. The full tax allowance for 2018/19 should be £11,850. Therefore, HMRC has decided to reduce your wife's tax allowances by £3,510.
They obviously have a reason for doing this but it might take a phone call to HMRC to find out why they are reducing her tax allowances by so much.
It could be because they are trying to collect unpaid tax from an earlier year or her previous employment. Or it could be because she receives some sort of taxable Benefit in Kind (such as Health Insurance) from her new employer.
If she is a basic rate taxpayer, losing £3,510 of allowances is costing her £702 per annum (£3,510 @ 20%)
If she is a higher rate taxpayer the tax loss is ££1,404.
If it's an error on HMRC's part (shirley not) then presumably it will be corrected when she does her SA tax return?They obviously have a reason for doing this but it might take a phone call to HMRC to find out why they are reducing her tax allowances by so much.
It could be because they are trying to collect unpaid tax from an earlier year or her previous employment. Or it could be because she receives some sort of taxable Benefit in Kind (such as Health Insurance) from her new employer.
If she is a basic rate taxpayer, losing £3,510 of allowances is costing her £702 per annum (£3,510 @ 20%)
If she is a higher rate taxpayer the tax loss is ££1,404.
She’s spoken with HMRC, the details she has given me are patchy but she has been told that there was a period last year when she didn’t pay enough tax, so they are taking more out till April, when it will go back to normal. Also she got paid from her old job and new job in the same month, what difference that makes I don’t know!
Thanks all
Thanks all
sparks_E46 said:
She’s spoken with HMRC, the details she has given me are patchy but she has been told that there was a period last year when she didn’t pay enough tax, so they are taking more out till April, when it will go back to normal. Also she got paid from her old job and new job in the same month, what difference that makes I don’t know!
Thanks all
Possibly..... the Old job would have taxed her at the correct rate. new job would have (probably) charged her at 20% when it should have been 40% and as a result she underpaid tax? Having said that it should have corrected itself when the new job got her P45....Thanks all
PixelpeepS3 said:
my tax code has been K819 for a while.
not sure what that's about.. will have to call them sometime i guess
A K prefixed code is a negative allowance. This means you get zero tax allowance and they are applying an additional 8190 of equivelant taxable income on top of your salary. not sure what that's about.. will have to call them sometime i guess
Usually this is because your taxable benefits exceed your tax allowance. This is most commonly caused by perhaps the benefit in kind rate for your company car and fuel plus perhaps Health Insurance and/or underpaid tax from a previous year. A decent car plus fuel can easily erode your basic tax allowance on its own.
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