have I paid too much tax?

Last post Thu, Oct 30 2008, 12:25 PM by sarahk. 3 replies.
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  •  Thu, Oct 30 2008, 12:25 PM

    Re: have I paid too much tax?

    Hi Slackrat 77,

    Your payroll dept messed up big time..... In terms of what has actaully happened though,it sounds all correct so far...IF you have been given a week 1 / month 1 indicator? You should notice either 'M1' or an 'X' after the tax code on your payslip? This means that your payroll dept. have asked the inland revenue (by way of the P46) to check your tax code notice, sort of. In the meantime they are taxing you on the correct codes but in a non-cumulative way, which mean the overpaid tax won't come back to you yet.

    They had been using the BR code incorrectly for several months before submitting the P46. The emergency tax code to use if they didn't have P45 details should have been 543L M1 - from the start - they are obviously useless muppets in your payroll dept!! Because of their mistake you have been overpaying tax all year, BUT, the only way to pay it back is to issue the P46 corrcetly, which it seems they have done.

    They are not allowed to take the M1 indicator off until advised by the IR now - even though it was their *** up to start with!

    You could speed the process up by calling the tax office yourself and asking them to change your code back to a basic 603L. They will notify your employer, who will then ammend the code & you would receive a refund in your following pay.

    If you look at your payslip you should see a tax office reference in the format 123/12345 - if not ask the payroll dept for this reference number. If you post the 1st 3 digits on here I will let you know the correct tax office to call. They will help you, its not in their interests to have it hanging around as an overpayment, and if you don't sort it out by 5th April you will need to request a refund directly from the IR which can be a right old hassle So try get it sorted before then!

    The IR have some absurdly complex rules about tax and paye, but your payroll dept, should have known better in this case. Like I said. Muppets. You couldn't make it up!

    Try & get the tax office ref & it can be sorted quickly - you could end up with an extra £300 or so in your December wage if you act now!

    Kind Regards


    • Post Points: 5
  •  Wed, Oct 29 2008, 2:02 PM

    Re: have I paid too much tax?

    Hi Slackrat 77

    The tax code 603L enables you to earn £6035 in this tax year before tax payable by you is considered. Divide this by 12 months which means that in October which will be month 7 in this tax year and you will be able to earn 7/12 ths of 6035 free pay - which is £3520. ( each month as you progress through the tax year the free pay earnings will increase by another 1/12 of the 6035.- Be in mind that each year this tax free figure is different and is announced by the government)

    When you get your next payslip - check it is month 7, then add all your taxable income earned this tax year (any earnings since April 6th 2008) as the lady answered previously should be on your P45, together with what you have earned to date with your present employer. subtract the £3520 tax free pay calculated earlier and the remainder should be multiplied by 20%. ie 20 p tax payable in every pound earned. - the figure you get will be tax you should have paid to date.

    Now, In the same way add all your tax paid in this tax year from april 6th 2008, that is from your P45 and from payslips with your new employer. And compare the figure you get to the amount you have calculated - if it is more then you have paid too much.

    You need to check that your tax code is not on a month 1 basis. (ask payroll dept)

    If you have paid too much tax or are on a month 1 basis ask your payroll dept for their tax office and address and contact them. Ensure you have the companys tax reference number along with your National Insurance number and explain that you are paying too much tax.

    Also be aware that you may not get a tax refund but just not pay as much tax in one month until it returns to normal.

    Hope you understand because tax is difficult for the ordinary hard working person living in GB today.


    • Post Points: 20
  •  Thu, Oct 16 2008, 5:28 PM

    Re: have I paid too much tax?

    It does look like you've paid too much but I will need to know how much you earned from your earlier job since 5 April 2008 until you got made redundant (should be the figures on the P45) both taxable pay and the tax deducted.

    If you have overpaid then it is down to your HR department to sort it out - the payroll package isn't working the cumulative tax out properly.

    • Post Points: 5
  •  Thu, Oct 16 2008, 9:08 AM

    have I paid too much tax?


    In late april I was made redundant and within 9 days started working for DSGI PLC at Currys Digital.
    I submitted my p45 on my first day and somewhere along the line between manager and HR is never arrived...

    my first 4 payslips were taxed at BR rate then I was issued code 543L after filling in a p46 and sending it to HR.
    then after Brown's rebate thing in sept, it changed to 603L.
    I have had no rebate of any kind, just my due commission and bonuses from the firm.

    I did ask HR when my last payslip was issued and they told me that if no repayment was included on my next one, then I should ring up.
    I get paid thursday and payslip arrives friday.

    if I dont get anything this time, whats my best course of action.
    is there a way of calculating how much i'm due from the start of this job to the time when i was assigned a tax code?

    do I contact DSGI HR services or the tax office?

    help please!!!!

    OK i started april 22 and we were 2 weeks or something into our 4 weekly work period.

    1st payslip tax code BR
    basic pay hour £308.12
    PAYE £61.80

    31/5/08 BR
    BASIC PAY £618.24
    PAYE 136.20
    NI EES 28.84

    28.06.08 BR
    BASIC PAY 618.24
    BANK HOL O/TIME 49.68
    PAYE 141.40
    NI EES 31.67

    26.07.08 BR (NOW ON 30HRS A WEEK INSTEAD OF 28)
    BASIC PAY 659.25
    PAYE 135.80
    NI EES 28.63

    23.08.08 CODE 543L
    BASIC PAY 662.40
    PAYE 60.80
    NI EES 33.48

    20.09.08 CODE 603L
    BASIC PAY 687.60
    O/TIME 27.60
    PAYE TAX 82.60
    NI EES 50.54

    Today i was paid £697.33 and i dont have my payslip yet.

    any help appreciated as to what i have to do next, cos sureley i shouldnt have paid that much tax on the first 4 payslips

    • Post Points: 35