Overtaxed massively... second month's pay at new job

Associate
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Hey guys

I am two months into a new job (first new job in 8 years) and on payday I received substantially less than I expected - essentially 50% of the money went to tax and national insurance!

What confuses me is that my first paycheque seemed to be normal... why would I now be taxed so much in month 2?

8 years ago when I started at my previous company I received a surprise tax rebate about 6 months in... but I never noticed such a huge dent in my salary upfront (probably because I was earning such a small amount).

Annoyingly the payslips at work are electronic and I can't see my tax code so I'll have to call HMRC.

My question is... will I have to wait till next April to get a tax refund once I sort out this mess?
 
Soldato
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When you said first new job in 8 years, were you working for those eight years and have moved jobs, or were you unemployed for the eight years?

If you are in a job you've moved into, but have a tax code from a previous job, then you might have been switched to emergency tax, so they are hitting you for taxation with little or no allowance for now. They might think you are still in your first job and are attempting to apply the allowance there.
Did you have a slip when leaving previous employment?
 
Associate
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I was in work for 8 years then moved job. My base salary actually went down in the new job (which is more bonus based).

I filled in a new starter checklist / P46 type of form on the first day to ensure against emergency tax codes.

As the salaries are in the same range, I would imagine the tax code should stay the same?

Another point to note is that I received a sign on bonus in my first month... could that have caused the issue in month 2?
 
Soldato
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Yes, the sign on bonus, might be what they are thinking is your base salary, thus you get slammed.

Month 2 should be fine though?

No - but they said that by filling in the "new starter checklist" a P45 would not be necessary.

I have the P45 here...

I bet they messed it up.

Student loans to pay off at all?

If the tax code is wrong, when you get it corrected I was under the impression it gets corrected in your next payslip i.e. you'll pay less than normal in tax.
 
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Associate
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Month 2 should be fine though?



I bet they messed it up.

Student loans to pay off at all?

If the tax code is wrong, when you get it corrected I was under the impression it gets corrected in your next payslip i.e. you'll pay less than normal in tax.

OK good to know I won't have to wait until April. It's not an unsubstantial amount of money so i'm going to have a poor month this month!

All student loans are paid off so nothing to do with that. I am using a pension scheme with "salary sacrifice" but if anything that should mean less tax.
 
Soldato
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What's the tax code on your payslip say? Assuming you have normal arrangements it should be something like 1060L. If it ends in BR then you're on the basic rate of tax.

EDIT: Just read that you can't see your tax code. Fail. :(
 
Soldato
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It'll most probably be the signing on bonus.

The tax thing works by trying to predict what you'll earn over a year based on your earnings to date. Any lump sum payment normally attract a bigger tax bill than normal, especially if early in the tax year.

It's probably a delay in that caused by your moving jobs so you underpaid in month 1 if the signing on bonus wasn't dealt with.
 
Soldato
Joined
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Another point to note is that I received a sign on bonus in my first month... could that have caused the issue in month 2?

Yes. How much tax did you pay on the first month's salary? What you expected? Less?
 
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