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

Will Gill · 24 Oct 2015 at 17:09

Bet you got K coded, happened to me and they put it right but over the course of the year so you won't get a huge chunk back just pay slightly less tax than you would normally.

jon86 · 24 Oct 2015 at 17:37

I am pretty sure that your tax code has to be written somewhere on every pay slip. It might be hidden within a deduction line item instead of being explicitly noted.

e.g.
Income Tax (1060L) - £XXXX.XX
National Insurance - £XXX.XX
Student Loan - £XXX.XX

instead of

Tax code: 1060L

Also, from what I understand, only HMRC can change a person's tax code, so if you have been put on the wrong tax code, phone HMRC and ask for it to be adjusted. They'll then send the updated tax code to your employer on your behalf.

MrMoonX · 24 Oct 2015 at 20:26

I receive a retention bonus every march, I lose nearly 50% of it, but the month after I pay less tax on my normal salary so it evens out. It could be something like this

Rroff · 24 Oct 2015 at 20:36

helpimcrap said:
Don't expect to get the money back until next April either as the tax year is until March 31st roughly.

When I've been put on an "emergency" tax code in the past I just paid less in tax every month after they sorted it until it evened out.

HangTime · 24 Oct 2015 at 20:38

I've seen this happen if you have overlapping payslips e.g. you get paid by old job and new job in the same month so end up getting tax relief on both payments in the first month. Then the second payslip of the new job they have to recoup the tax that you didn't pay because you got a 'double helping' of untaxed pay the previous month.

Won't necessarily happen depending on whether you were able to supply a P45 in time, but it happened to me in 2006.

helpimcrap · 24 Oct 2015 at 20:39

Rroff said:
When I've been put on an "emergency" tax code in the past I just paid less in tax every month after they sorted it until it evened out.

It *should* but it takes time sometimes so if you don't count on it then you get a nice surprise if it doesn't.

Blackjack Davy · 24 Oct 2015 at 22:01

Will Gill said:
Bet you got K coded, happened to me and they put it right but over the course of the year so you won't get a huge chunk back just pay slightly less tax than you would normally.

Yes K code is the emergency tax code it basically means they have no idea what tax you should be paying so they slap on the highest rate that salary band is payable for.

You'll have to speak to the tax office and hand over the P45 if you have it it contains the amount of tax you have/had paid/are liable for this year already.

Ian_Eb · 24 Oct 2015 at 22:07

I thought K was when your BIK exceeded your allowance. I was on K for years when I had both car and fuel provided for private use.

https://www.gov.uk/emergency-tax-code

ArmyofHarmony · 24 Oct 2015 at 23:12

So I managed to get through to HMRC earlier today after waiting 50 minutes on hold!

Turns out they added my previous salary and current salary together and taxed me on that... apparently a very common situation.

They've sent a new tax code to my employer and apparently I will receive a rebate in the my next pay!

With interest I hope?!

Em3bbs · 24 Oct 2015 at 23:20

This happened to me as well, I got a signing on bonus in January when starting a new job, then put on some crazy code. I filled in a form online on the HMRC then they fixed my tax code. I didn't need to phone them.

Here is the email I got after filling in the form:

"Thank you for your ‘PAYE Coding Notice query’.

We have updated your tax code based on the information you have supplied.

You will receive an updated PAYE Coding Notice in the next 7-10 days and we will also tell your employer and/or pension provider what your updated tax code is.

HM Revenue & Customs"