PAYE Tax Mistake!
Posted by: u5227470736789439 on 27 April 2006
Dear Friends,
Today I discovered a frightful tax bodge in my wages.
I was allowed no personal allowance at all last financial year, and the Basic Rate has been being deducted from all earnings since the begining of last Tax Year (April 'O5). Shall I stand a chance of getting a Tax Rebate or is this a lost cause? It would allow me to go to see my Aunt in Norway this summer if I can get it back.
The confusion arose (in my mind) as I had a small wage rise at the time the mistake started, so I did not spot it.
My realisation only came about after of a conversation with my two Polish cohorts, who I lobbied to get a wage rise for, and though I am the old teacher they are on the same rate. The extra tax take has been almost exactly twice what they endure.
I shall see Personel tomoroow before work, but do I stand a chance, in anyone's opinion of reclaiming this bloody disasterous over-taxing? There is no hidden private income, I hasten to add!
Fredrik
Today I discovered a frightful tax bodge in my wages.
I was allowed no personal allowance at all last financial year, and the Basic Rate has been being deducted from all earnings since the begining of last Tax Year (April 'O5). Shall I stand a chance of getting a Tax Rebate or is this a lost cause? It would allow me to go to see my Aunt in Norway this summer if I can get it back.
The confusion arose (in my mind) as I had a small wage rise at the time the mistake started, so I did not spot it.
My realisation only came about after of a conversation with my two Polish cohorts, who I lobbied to get a wage rise for, and though I am the old teacher they are on the same rate. The extra tax take has been almost exactly twice what they endure.
I shall see Personel tomoroow before work, but do I stand a chance, in anyone's opinion of reclaiming this bloody disasterous over-taxing? There is no hidden private income, I hasten to add!
Fredrik
Posted on: 27 April 2006 by JWM
quote:Originally posted by Fredrik_Fiske:
...but do I stand a chance, in anyone's opinion of reclaiming this bloody disasterous over-taxing?...Fredrik
Fredrik,
I should bloomin' well hope so - I have to fill-in one of those self-assessment things each year, which I find makes this whole tax business less mysterious and frightning...
It's not that bad, you just have to stand your ground!
So it seems to me [and there are probably professional tax experts on this Forum] that if you're paying PAYE and are overseen by Personnel (i.e someone else's oversite), and a genuine mistake has been made, that should mean it's perfectly recoverable. So feel encouraged. Persist and Persevere. Don't be put off by burocracy, 'Job's worths', etc.
All the best,
James
Posted on: 27 April 2006 by u5227470736789439
Dear James,
To be honest it has caused real hardship, as the rise was to £5.50 per hour, so as soon as you consider running a vehical to actually get to work, I think I was rather heavily taxed, but just accepted it, uncomplaining.
In my days when I supplemented my living from playing and teaching the bass I used to fill in the Self-assessment Forms, so that much I understood. It is surprising how the odd weekend getting a fee and porterage, or the occasional teaching fee, helped keep things motoring along. It was an interesting situation to be called in to work on a Saturday, when I had a concert in Stoke or Birmingham or wherever, and say to them that the company could not afford me! I enjoyed that irony. I would get a cheque bigger than the week's wages from work for playing, and it seems a pecculiarity that music should subsidize food manufacture in my case. The lazy house-wife benfiting from Bach or Beethoven. Happy days, those were!
Four thing would follow: A new pair of specs, a new cam-belt for the motor, seeing my Aunt in Norway in the summer, and getting my old CD player fettled. All this has been simply cancelled due to the Financial situation, and I would always have been too proud to consider asking for help! If it feeds through, I can catch up, if not exactly be rolling in it... Fingers crossed, hey!
Fredrik
PS: The difficulties may be seen as a reason (if not excuse) for my occasional bouts of crabbiness. The pressure has been considerable, and I began to ask why I should bother to work at all, which is uncharacteristic!
To be honest it has caused real hardship, as the rise was to £5.50 per hour, so as soon as you consider running a vehical to actually get to work, I think I was rather heavily taxed, but just accepted it, uncomplaining.
In my days when I supplemented my living from playing and teaching the bass I used to fill in the Self-assessment Forms, so that much I understood. It is surprising how the odd weekend getting a fee and porterage, or the occasional teaching fee, helped keep things motoring along. It was an interesting situation to be called in to work on a Saturday, when I had a concert in Stoke or Birmingham or wherever, and say to them that the company could not afford me! I enjoyed that irony. I would get a cheque bigger than the week's wages from work for playing, and it seems a pecculiarity that music should subsidize food manufacture in my case. The lazy house-wife benfiting from Bach or Beethoven. Happy days, those were!
Four thing would follow: A new pair of specs, a new cam-belt for the motor, seeing my Aunt in Norway in the summer, and getting my old CD player fettled. All this has been simply cancelled due to the Financial situation, and I would always have been too proud to consider asking for help! If it feeds through, I can catch up, if not exactly be rolling in it... Fingers crossed, hey!
Fredrik
PS: The difficulties may be seen as a reason (if not excuse) for my occasional bouts of crabbiness. The pressure has been considerable, and I began to ask why I should bother to work at all, which is uncharacteristic!
Posted on: 28 April 2006 by kevj
Fredrik,
You need to contact the tax office. They will issue a notce of coding (form P6) to your employer which will put things right for the current year. Any tax which you've overpaid since the 5th April will be refunded to you through your wages.
For the last tax year, you will need to submit a claim to the Revenue. If your employer has issued you with a P60 this may expedite matters as the Revenue will need some evidence of the tax actually paid by you in the last year - usually your original P60 form. Back in the day when I knew something about these things a letter in a case such as yours would have been sufficient. They may ask you to complete a tax return though.....
All the best
Kevin
You need to contact the tax office. They will issue a notce of coding (form P6) to your employer which will put things right for the current year. Any tax which you've overpaid since the 5th April will be refunded to you through your wages.
For the last tax year, you will need to submit a claim to the Revenue. If your employer has issued you with a P60 this may expedite matters as the Revenue will need some evidence of the tax actually paid by you in the last year - usually your original P60 form. Back in the day when I knew something about these things a letter in a case such as yours would have been sufficient. They may ask you to complete a tax return though.....
All the best
Kevin
Posted on: 28 April 2006 by Tam
Dear Fredrik,
I had this a few years back (though it was only 2 or three months where I'd over paid). I downloaded a form (I forget the number) from the Revenue website. Yyou fill in all the money you've earned - wages, interest on savings, etc. and tell then what you've paid and then they send you a nice cheque - I actually got mine back in just a couple of weeks.
regards, Tam
I had this a few years back (though it was only 2 or three months where I'd over paid). I downloaded a form (I forget the number) from the Revenue website. Yyou fill in all the money you've earned - wages, interest on savings, etc. and tell then what you've paid and then they send you a nice cheque - I actually got mine back in just a couple of weeks.
regards, Tam
Posted on: 28 April 2006 by Bob McC
Of course it may be that your Polish mates haven't paid enough tax......
Posted on: 28 April 2006 by Jono 13
Fredrik,
Make sure you do it now. If you have overpaid then as Tam notes the IR will pay back any over payment quickly as they will have to pay you interest on any outstanding sum owned to you.
Also make sure that you get the allowances added to your current pay. This has happened to my wife in the past and she ended up getting a repayment though her wages, which was nice.
Again DO NOT DELAY contacting the local tax office they will want to get it right.
Jono
Make sure you do it now. If you have overpaid then as Tam notes the IR will pay back any over payment quickly as they will have to pay you interest on any outstanding sum owned to you.
Also make sure that you get the allowances added to your current pay. This has happened to my wife in the past and she ended up getting a repayment though her wages, which was nice.
Again DO NOT DELAY contacting the local tax office they will want to get it right.
Jono
Posted on: 28 April 2006 by u5227470736789439
Dear friends,
I have just spoken to the Wages Department Manageress, whom I know and like. She was somewhat startled by it. It looks like a huge oversight! Next week I'll get in touch with the Tax Office, when they give me all the gen, and contact details. It seems that I have no Tax Code issued by the Revenue! That must be wrong as I used to have a standard one...
I hope this works out. Apart from having left me staggeringly short for nearly a year, it would allow me to catch up on certain essentials, which got put off and off.
All the best from Fredrik
I have just spoken to the Wages Department Manageress, whom I know and like. She was somewhat startled by it. It looks like a huge oversight! Next week I'll get in touch with the Tax Office, when they give me all the gen, and contact details. It seems that I have no Tax Code issued by the Revenue! That must be wrong as I used to have a standard one...
I hope this works out. Apart from having left me staggeringly short for nearly a year, it would allow me to catch up on certain essentials, which got put off and off.
All the best from Fredrik
Posted on: 28 April 2006 by JonR
Fred,
ISTM that every (UK) taxpayer should have a personal allowance of some sort, and therefore a tax code which indicates what the allowance is. To find out you have been deprived of one is startling to say the least.
Also, it might be worth double-checking what tax changes cames into force with the advent of the new tax year. Recently I noticed that my weekly wages dropped by some £30 which are probably due to hitherto unannounced national security contribution increases, or something.
Cheers,
Jon
ISTM that every (UK) taxpayer should have a personal allowance of some sort, and therefore a tax code which indicates what the allowance is. To find out you have been deprived of one is startling to say the least.
Also, it might be worth double-checking what tax changes cames into force with the advent of the new tax year. Recently I noticed that my weekly wages dropped by some £30 which are probably due to hitherto unannounced national security contribution increases, or something.
Cheers,
Jon
Posted on: 28 April 2006 by living in lancs yearning for yorks
Fredrik
What a mess! You should undoubtedly get a refund (providing I haven't misunderstood what you've said), of up to / around £1,000.
Going forward, the new year's (2006-07) tax code on your payslip should be something like 503L (the amount of the personal allowance of £5,035, divided by 10, with a letter added - no idea what the letter should be - might not be "L" - as I no longer have much to do with tax, other than paying it, although I am an accountant!)
I think your employer really should have picked this up a long time ago and chased up why there was no tax code...
Hope you get this sorted soon
Tim
What a mess! You should undoubtedly get a refund (providing I haven't misunderstood what you've said), of up to / around £1,000.
Going forward, the new year's (2006-07) tax code on your payslip should be something like 503L (the amount of the personal allowance of £5,035, divided by 10, with a letter added - no idea what the letter should be - might not be "L" - as I no longer have much to do with tax, other than paying it, although I am an accountant!)
I think your employer really should have picked this up a long time ago and chased up why there was no tax code...
Hope you get this sorted soon
Tim
Posted on: 28 April 2006 by Steve Bull
This can be sorted - the money isn't lost.
As others have said, you may have a tax code adjustment to get back the overpaid tax for the current year; you'll probably have some degree of form-filling to get back last year's. Don't expect it to be quick as my experience is that the tax office moves slowly at the best of times, but you will get your refund(s).
Best of luck.
Steve.
As others have said, you may have a tax code adjustment to get back the overpaid tax for the current year; you'll probably have some degree of form-filling to get back last year's. Don't expect it to be quick as my experience is that the tax office moves slowly at the best of times, but you will get your refund(s).
Best of luck.
Steve.
Posted on: 28 April 2006 by Justyn
Fredrik,
You may want to have a look at the following website:
www.hmrc.gov.uk
Also this page will give you a rough idea of how much money you should be able to get back:
http://www.hmrc.gov.uk/students/iwt-get-any-overpaid-tax-back.shtml
As Tim as said above assuming your not married your tax code should be 503L assuming you don't have any benefits in kind.
To understand your tax code use this page:
http://www.hmrc.gov.uk/payetaxpayers/fagp3_2003(1).shtml
Hope this helps
Justyn.
You may want to have a look at the following website:
www.hmrc.gov.uk
Also this page will give you a rough idea of how much money you should be able to get back:
http://www.hmrc.gov.uk/students/iwt-get-any-overpaid-tax-back.shtml
As Tim as said above assuming your not married your tax code should be 503L assuming you don't have any benefits in kind.
To understand your tax code use this page:
http://www.hmrc.gov.uk/payetaxpayers/fagp3_2003(1).shtml
Hope this helps
Justyn.
Posted on: 28 April 2006 by Polarbear
Frdrik,
Simply take your Tax details, P60 etc for the last two years and point out the error. They will be able to sort it out there and then. A simple matter of filling in a few forms which they will help you with and a repayment order will be issued.
If you have any difficulties email me nigelrball@aol.com and I will sort it out for you,
Regards
PB
Simply take your Tax details, P60 etc for the last two years and point out the error. They will be able to sort it out there and then. A simple matter of filling in a few forms which they will help you with and a repayment order will be issued.
If you have any difficulties email me nigelrball@aol.com and I will sort it out for you,
Regards
PB
Posted on: 28 April 2006 by AV@naim
My girlfriend who works for a well known financial services co....says you are entitled to claim, find out from your local citezens advice how to contact your local tax officer. If you are being charged basic rate on your entire salary, you are likely paying national insurance on your entire salary also.
With NI contributions remember:-
a) if you earn under £97 a week, you don't pay national insurance.
b) anything between £97 and £645 a week, you pay national insurance @11%.
c) anything over £645 a week, you pay @1%
With NI contributions remember:-
a) if you earn under £97 a week, you don't pay national insurance.
b) anything between £97 and £645 a week, you pay national insurance @11%.
c) anything over £645 a week, you pay @1%
Posted on: 28 April 2006 by SWP
I have a similar tax related query I was going to ask as I know there are a few accountants on here.
Basically I received my P60 and one of the parts did not make sense.
"Easnings above the LEL, upto and including the earnings threshold." What does that mean? There's less than £1000 in there but what is it? Am I due that money? Everything else pretty much makes sense apart from that.
Thanks
SWP
Basically I received my P60 and one of the parts did not make sense.
"Easnings above the LEL, upto and including the earnings threshold." What does that mean? There's less than £1000 in there but what is it? Am I due that money? Everything else pretty much makes sense apart from that.
Thanks
SWP
Posted on: 28 April 2006 by u5227470736789439
Up date!
I firstly spoke with the wages lady. And then, with the company reference, I spoke to the Tax Ofice. It seems I have been overtaxed by about £1,200, and when the P60 feeds through all I have to do is send a covering letter and ia rebate should come in two to four weeks. Phew!
My proper tax code should be in place within two weeks!
It is nice to report that the Tax Office man was the model of polite understanding and I was given the use of a company phone and enough time to sort this out there and then. Altogether a satisfactory start to sorting out a mistake. I don't care who made it, as i have no interest in the current blame culture vogue!
All the best from Fredrik
I firstly spoke with the wages lady. And then, with the company reference, I spoke to the Tax Ofice. It seems I have been overtaxed by about £1,200, and when the P60 feeds through all I have to do is send a covering letter and ia rebate should come in two to four weeks. Phew!
My proper tax code should be in place within two weeks!
It is nice to report that the Tax Office man was the model of polite understanding and I was given the use of a company phone and enough time to sort this out there and then. Altogether a satisfactory start to sorting out a mistake. I don't care who made it, as i have no interest in the current blame culture vogue!
All the best from Fredrik
Posted on: 28 April 2006 by erik scothron
quote:Originally posted by Fredrik_Fiske:
Up date!
I firstly spoke with the wages lady. And then, with the company reference, I spoke to the Tax Ofice. It seems I have been overtaxed by about £1,200, and when the P60 feeds through all I have to do is send a covering letter and ia rebate should come in two to four weeks. Phew!
My proper tax code should be in place within two weeks!
It is nice to report that the Tax Office man was the model of polite understanding and I was given the use of a company phone and enough time to sort this out there and then. Altogether a satisfactory start to sorting out a mistake. I don't care who made it, as i have no interest in the current blame culture vogue!
All the best from Fredrik
Well done Fredrik, I'm pleased you got it sorted out.
Posted on: 02 May 2006 by living in lancs yearning for yorks
Just a couple of comments to add:
1. very pleased to hear you got it sorted, Fredrik. I wasn't suggesting you "blame" anyone - sorry if I gave that impression, was just expressing my surprise that this had been left to you to pick up and resolve
2. would like to correct AV@Naim's comment that likely to be overpaying NIC also - I disagree, it's very unlikely that you have been overpaying NIC when overpaying tax. They are calculated separately by use of different sets of tables, despite the similarity of the NIC-free level of earnings and the personal allowance for tax;
3. SWP - don't worry about the "earnings above the LEL, up to and including the earnings threshold". I'm not sure why it appears on the P60 but you're not due a refund or anything. It's a bit convoluted but, the Lower Earnings Limit is currently £84 per week and the earnings ("Primary") Threshold is currently £97 per week. No national insurance contributions are payable on the first £97 per week of earnings - but earnings above £84 per week entitle you to various benefits. So you can build up entitlement to various national-insurance-benefits without actually having to pay national insurance contributions
Hope this helps
Tim
1. very pleased to hear you got it sorted, Fredrik. I wasn't suggesting you "blame" anyone - sorry if I gave that impression, was just expressing my surprise that this had been left to you to pick up and resolve
2. would like to correct AV@Naim's comment that likely to be overpaying NIC also - I disagree, it's very unlikely that you have been overpaying NIC when overpaying tax. They are calculated separately by use of different sets of tables, despite the similarity of the NIC-free level of earnings and the personal allowance for tax;
3. SWP - don't worry about the "earnings above the LEL, up to and including the earnings threshold". I'm not sure why it appears on the P60 but you're not due a refund or anything. It's a bit convoluted but, the Lower Earnings Limit is currently £84 per week and the earnings ("Primary") Threshold is currently £97 per week. No national insurance contributions are payable on the first £97 per week of earnings - but earnings above £84 per week entitle you to various benefits. So you can build up entitlement to various national-insurance-benefits without actually having to pay national insurance contributions
Hope this helps
Tim
Posted on: 02 May 2006 by JonR
Nice one, Fred.
Now for the obvious question:- what system upgrades can you get for 1.2k?
Cheers,
Jon
Now for the obvious question:- what system upgrades can you get for 1.2k?
Cheers,
Jon
Posted on: 02 May 2006 by u5227470736789439
Dear Jon!
Actually, I intent to buy a new pair of specstacles, (which should have happeved six months ago), get the cam-belt changed on the motor, buy a ticket to Norway (and get the Passport renewed), so I can see my Aunt in Norway, and then review whether any of it goes towards the gramophone.
I am seeling my P3 and some LPs which will leave a small shortfall towards a Hi-line. That is I really hope to get a Hi-line if I can afford it! Truth is I want to leave a comfort zone in the bank, and from the above you will see that I have not been keeping up with essentials, let alone such a proposition as seeing my favourite familly memeber. So The upgrade thing comes a definate fourth on the list!
Oh and the poor old CDS2 is ripe for a service, damn!
Thanks for all the constructive help! Fredrik
Actually, I intent to buy a new pair of specstacles, (which should have happeved six months ago), get the cam-belt changed on the motor, buy a ticket to Norway (and get the Passport renewed), so I can see my Aunt in Norway, and then review whether any of it goes towards the gramophone.
I am seeling my P3 and some LPs which will leave a small shortfall towards a Hi-line. That is I really hope to get a Hi-line if I can afford it! Truth is I want to leave a comfort zone in the bank, and from the above you will see that I have not been keeping up with essentials, let alone such a proposition as seeing my favourite familly memeber. So The upgrade thing comes a definate fourth on the list!
Oh and the poor old CDS2 is ripe for a service, damn!
Thanks for all the constructive help! Fredrik
Posted on: 02 May 2006 by JonR
Excellent stuff, Fred.
FWIW I reckon that going to Norway to see your Aunt will be the best "upgrade" you've ever done!
Cheers,
Jon
FWIW I reckon that going to Norway to see your Aunt will be the best "upgrade" you've ever done!
Cheers,
Jon
Posted on: 02 May 2006 by u5227470736789439
Dear Jon,
Whenever I come back from Norway I have a head full of music, as I can easily listen without s system, but with one big disadvantage. I cannot get the music out of my head once it starts. Poor old Joseph Haydn said the same thing nearly drove him mad before he died as a very old man. This is the mental recreation of a whole piece, and it seems at real speed, but one can imagine a whole Beethoven Symphony in only perhaps twenty minutes!
I have to listen, concentrating, to a performance to get it back out of my head for a while.
Interesting the music always comes as a sort of point source like mono in my head! Maybe that is why I like mono records!
But the music is so powerful after a break!
Yes Norway is the most important upgrade!
____
I was socialising rather too successfully last night, and am feeling very green at the gills! Glad I have another day off, and tomorrow my Naim dealer is coming here for completely social reasons as well, but also to cast an ear over my old set, which he really does know is fairly much in its final iteration. It is nice when a dealer visit is more social than business, isn't it?
All the best from Fredrik
Whenever I come back from Norway I have a head full of music, as I can easily listen without s system, but with one big disadvantage. I cannot get the music out of my head once it starts. Poor old Joseph Haydn said the same thing nearly drove him mad before he died as a very old man. This is the mental recreation of a whole piece, and it seems at real speed, but one can imagine a whole Beethoven Symphony in only perhaps twenty minutes!
I have to listen, concentrating, to a performance to get it back out of my head for a while.
Interesting the music always comes as a sort of point source like mono in my head! Maybe that is why I like mono records!
But the music is so powerful after a break!
Yes Norway is the most important upgrade!
____
I was socialising rather too successfully last night, and am feeling very green at the gills! Glad I have another day off, and tomorrow my Naim dealer is coming here for completely social reasons as well, but also to cast an ear over my old set, which he really does know is fairly much in its final iteration. It is nice when a dealer visit is more social than business, isn't it?
All the best from Fredrik