Discussion
Just had an email through from HMRC changing my tax code to K1949 and reducing my tax free allowance to -£20k.
Thing is I've not yet done my tax return for TY 22-23. Although I've changed roles current base salary is unchanged and earnings for 22-23 will be down c25% on 21-22 due to discretionary pay differences. Simple as just doing the tax return (despite having another 9 weeks to do so?) - their earnings estimate is only about £10k too much.
How do I sort this out? Typically this happens on the month my mortgage resets to current rates (1.5%-5.8%) and my wife is on statutory maternity.
How can they adjust something like this on an estimate only?
Thing is I've not yet done my tax return for TY 22-23. Although I've changed roles current base salary is unchanged and earnings for 22-23 will be down c25% on 21-22 due to discretionary pay differences. Simple as just doing the tax return (despite having another 9 weeks to do so?) - their earnings estimate is only about £10k too much.
How do I sort this out? Typically this happens on the month my mortgage resets to current rates (1.5%-5.8%) and my wife is on statutory maternity.
How can they adjust something like this on an estimate only?
Edited by kiethton on Monday 27th November 19:28
It's amazing how after a simple job change, even when you promptly give your new employer your P45 on the day of joining prior to any payroll run, HMRC still manage to screw things up and treat the new employer as if it is a second job.
It is but a 45 minute phone call to sort out, but what a waste of effort for both parties. It is almost like they have some algorithm that assumes the least likely scenario as a default to any possible change.
It is but a 45 minute phone call to sort out, but what a waste of effort for both parties. It is almost like they have some algorithm that assumes the least likely scenario as a default to any possible change.
kiethton said:
Just had an email through from HMRC changing my tax code to K1949 and reducing my tax free allowance to -£20k.
Thing is I've not yet done my tax return for TY 22-23. Although I've changed roles current base salary is unchanged and earnings for 22-23 will be down c25% on 21-22 due to discretionary pay differences. Simple as just doing the tax return (despite having another 9 weeks to do so?) - their earnings estimate is only about £10k too much.
How do I sort this out? Typically this happens on the month my mortgage resets to current rates (1.5%-5.8%) and my wife is on statutory maternity.
How can they adjust something like this on an estimate only?
Dumb question alert...Thing is I've not yet done my tax return for TY 22-23. Although I've changed roles current base salary is unchanged and earnings for 22-23 will be down c25% on 21-22 due to discretionary pay differences. Simple as just doing the tax return (despite having another 9 weeks to do so?) - their earnings estimate is only about £10k too much.
How do I sort this out? Typically this happens on the month my mortgage resets to current rates (1.5%-5.8%) and my wife is on statutory maternity.
How can they adjust something like this on an estimate only?
Edited by kiethton on Monday 27th November 19:28
... I thought tax free allowance was £12.5k?
Thanks all, will try HMRC phone bingo at some point this week
... I thought tax free allowance was £12.5k?Is normally but i don't get it unfortunately. They've adjusted my code to negative £20k
RSTurboPaul said:
kiethton said:
Just had an email through from HMRC changing my tax code to K1949 and reducing my tax free allowance to -£20k.
Thing is I've not yet done my tax return for TY 22-23. Although I've changed roles current base salary is unchanged and earnings for 22-23 will be down c25% on 21-22 due to discretionary pay differences. Simple as just doing the tax return (despite having another 9 weeks to do so?) - their earnings estimate is only about £10k too much.
How do I sort this out? Typically this happens on the month my mortgage resets to current rates (1.5%-5.8%) and my wife is on statutory maternity.
How can they adjust something like this on an estimate only?
Dumb question alert...Thing is I've not yet done my tax return for TY 22-23. Although I've changed roles current base salary is unchanged and earnings for 22-23 will be down c25% on 21-22 due to discretionary pay differences. Simple as just doing the tax return (despite having another 9 weeks to do so?) - their earnings estimate is only about £10k too much.
How do I sort this out? Typically this happens on the month my mortgage resets to current rates (1.5%-5.8%) and my wife is on statutory maternity.
How can they adjust something like this on an estimate only?
Edited by kiethton on Monday 27th November 19:28
... I thought tax free allowance was £12.5k?
Sounds like HMRC have been told of your new job (from your new employer), but not been told you've left your old job (as your old employer should have done).
Or they've not processed the leaving details as reported by your old employer for some reason (error / incompetence / etc)
The operation of PAYE is down to the employer & is nothing to do with whether you've done your TR yet.
Ideally the leaving details will make it through to your record & a correct code number issued. But don't count on it. I'd suggest you try to contact them (HMRC) & explain. Good luck with that - set some time aside for them to answer the phone. Make sure you have your details- old employer, new employer, tax codes at both, NI No, SA UTR No to hand when you do call them. In the olden days a letter would have sufficed but given their delays, you'd be overpaying tax for some time if you tried writing to them. Telephone seems the only (poor) option.
Or they've not processed the leaving details as reported by your old employer for some reason (error / incompetence / etc)
The operation of PAYE is down to the employer & is nothing to do with whether you've done your TR yet.
Ideally the leaving details will make it through to your record & a correct code number issued. But don't count on it. I'd suggest you try to contact them (HMRC) & explain. Good luck with that - set some time aside for them to answer the phone. Make sure you have your details- old employer, new employer, tax codes at both, NI No, SA UTR No to hand when you do call them. In the olden days a letter would have sufficed but given their delays, you'd be overpaying tax for some time if you tried writing to them. Telephone seems the only (poor) option.
Well, I updated the estimate - they've ignored it and deducted more this month, leaving my take-home down about £1,300.
I've re-submitted the estimate at the bottom bound of the super-tax band but they don't seem to be accepting it as my total tax year to date is already above this (they are ignoring the pension payments I intend to make in March) which I obviously haven't self-assessed yet as I've still got over 12m to do so.
Despite this I've just had another email through saying that my tax free allowance is now even more negative and they'll be taking even more next month!
How do you sort this shambolic system, ideally getting them to release the cash they've erroneously taken this pay packet?
I've re-submitted the estimate at the bottom bound of the super-tax band but they don't seem to be accepting it as my total tax year to date is already above this (they are ignoring the pension payments I intend to make in March) which I obviously haven't self-assessed yet as I've still got over 12m to do so.
Despite this I've just had another email through saying that my tax free allowance is now even more negative and they'll be taking even more next month!
How do you sort this shambolic system, ideally getting them to release the cash they've erroneously taken this pay packet?
kiethton said:
Well, I updated the estimate - they've ignored it and deducted more this month, leaving my take-home down about £1,300.
I've re-submitted the estimate at the bottom bound of the super-tax band but they don't seem to be accepting it as my total tax year to date is already above this (they are ignoring the pension payments I intend to make in March) which I obviously haven't self-assessed yet as I've still got over 12m to do so.
Despite this I've just had another email through saying that my tax free allowance is now even more negative and they'll be taking even more next month!
How do you sort this shambolic system, ideally getting them to release the cash they've erroneously taken this pay packet?
Maybe make your income more predictable / stable through the year? That's how PAYE works. If it isn't stable, then you adjust via your tax return.I've re-submitted the estimate at the bottom bound of the super-tax band but they don't seem to be accepting it as my total tax year to date is already above this (they are ignoring the pension payments I intend to make in March) which I obviously haven't self-assessed yet as I've still got over 12m to do so.
Despite this I've just had another email through saying that my tax free allowance is now even more negative and they'll be taking even more next month!
How do you sort this shambolic system, ideally getting them to release the cash they've erroneously taken this pay packet?
Also, you can track your submission of your new estimated earnings. I suspect they haven't ignored it, but maybe haven't proceesed it yet.
Edited by CharlesElliott on Wednesday 27th December 20:34
I had this and it’s a right pain.
It occurred as, amongst other things, i paid a fair wack of employer pension contributions as salary sacrifice pension.
It was a pain to sort out, and the only way you can do it is by phoning them, and to be honest, based on my knowledge of civil servants, you’ve got f
k all chance of getting through this week, they are not on holiday, it’s far too cold for that, but they are all working from home with no management and performance KPIs have been pushed back on by the unions, as asking employees to work for their cash is bang out of order.
So good luck, but don’t bother with the online ‘updater’ if HMRC are out of the money based on your changes they will simply ignore it.
It occurred as, amongst other things, i paid a fair wack of employer pension contributions as salary sacrifice pension.
It was a pain to sort out, and the only way you can do it is by phoning them, and to be honest, based on my knowledge of civil servants, you’ve got f
k all chance of getting through this week, they are not on holiday, it’s far too cold for that, but they are all working from home with no management and performance KPIs have been pushed back on by the unions, as asking employees to work for their cash is bang out of order.So good luck, but don’t bother with the online ‘updater’ if HMRC are out of the money based on your changes they will simply ignore it.
Reading with interest as my tax code is K172.
I left one job and they couldn't give me my P60 for a month as I left on 3rd day.
My new job also gave me a £5k sign-on bonus.
So I got two salaries and a bonus. My new salary was also over double my old one. So HMRC probably freaked out.
I did get a letter about 2 months ago asking for details and bank information as they said I may be due a refund. About 6 months ago I also updated the HMRC portal to my correct salary.
My tax is a lot:
December: £3130
November: £3550
October: £3130
September: £3270
When I first joined in February my tax was just £132
I've not had any refunds or adjustments. I'm assuming that around march or April it will be sorted out or refunded if eligible.
I left one job and they couldn't give me my P60 for a month as I left on 3rd day.
My new job also gave me a £5k sign-on bonus.
So I got two salaries and a bonus. My new salary was also over double my old one. So HMRC probably freaked out.
I did get a letter about 2 months ago asking for details and bank information as they said I may be due a refund. About 6 months ago I also updated the HMRC portal to my correct salary.
My tax is a lot:
December: £3130
November: £3550
October: £3130
September: £3270
When I first joined in February my tax was just £132
I've not had any refunds or adjustments. I'm assuming that around march or April it will be sorted out or refunded if eligible.
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