The mystery that is tax...

Michael_10 · 7 Jan 2011 at 22:05

It seems to be one of the most confusing things there could be!!!

Middle of November I got a new Saturday job at Boots, and I was paid weekly, for the first 3 weeks I was taxed at 20% while I got my P46 and other forms sorted out. Now the next 2 weeks after this I received the full amount and no tax was taken off, so I thgouht it was sorted out, but today, after receiving my pay, which was a lot more than usual (20 hours vs 5 hours) because of extra time I did during the holidays, I have been taxed again at 20%?!?!

Does anybody know what is going on??

Stuff · 7 Jan 2011 at 22:07

You're on emergency tax and you'll keep losing 20% until it's sorted.

Fenris · 7 Jan 2011 at 22:08

Your 16 and working a Saturday job, you probably shouldn't even be being taxed, call up the HMRC and get it sorted.

Actually saying that you might just have to get any tax payed back at the end of the financial year, I'm not sure how that works.

Chizuna · 7 Jan 2011 at 22:12

Or leave it and get a random letter saying you're owed money for it.

Then get another letter 6 months later saying you're owed the same amount,then after ignoring the 2nd letter, get yet another letter saying you owe the government money lol that happened to me after paying emergency tax when I shouldn't have.

Kept the letters of course but ignored them.

Michael_10 · 7 Jan 2011 at 22:13

Thing is I did phone them up and got a form sent out, and for 2 weeks they never taxed me, but this week they started taxing me again and I was just wondering why this has happened??

Wossi · 7 Jan 2011 at 22:13

That's nothing. I got a letter from the tax man yesterday stating I owed them £820 for the 2009-2010 tax year. Had a word with the Financial Director at work about it, he did some calculations and it turns out I've been on the wrong tax code sine the start of 2007

Best case, I owe the tax man £1600, worst case I owe them £3200.

LSEdwards · 7 Jan 2011 at 22:20

If you filled in the P46 correctly then it sounds like Boots' Payroll department may be at fault. Talking to HMRC won't do you a lot of good here - I think you should speak to Boots Payroll department first. You may need to do this via your manager at work, not sure what the "rules" are in Boots.

I suppose it could have something to do with the extra hours, but your tax code should let you earn up to the Personal Allowance before income tax is deducted. Filling in the P46 allows your employer to give you the appropriate tax code.

jp_bl_68 · 7 Jan 2011 at 22:22

Wossi said:
That's nothing. I got a letter from the tax man yesterday stating I owed them £820 for the 2009-2010 tax year. Had a word with the Financial Director at work about it, he did some calculations and it turns out I've been on the wrong tax code sine the start of 2007

Best case, I owe the tax man £1600, worst case I owe them £3200.

Is there a site where you can check how much tax you should be paying?

Michael_10 · 7 Jan 2011 at 22:22

I was previously at McDonalds, and when I left they said they would keep me 'on the books' so they may still be thinking Boots is like a second job or something?!

silversurfer · 7 Jan 2011 at 22:26

That might be it. For any second job all income is taxed fully with no allowance. Register as a student and you will not pay tax for the year

Of course you still the money if you do end up earning over a certain amount, I forget how the much standard is but a few hours wont exceed that much.

Good news is you can claim this back in april but I dont believe you have absolute right to it till then

Chizuna · 7 Jan 2011 at 22:29

LSEdwards said:
If you filled in the P46 correctly then it sounds like Boots' Payroll department may be at fault. Talking to HMRC won't do you a lot of good here - I think you should speak to Boots Payroll department first. You may need to do this via your manager at work, not sure what the "rules" are in Boots.

I suppose it could have something to do with the extra hours, but your tax code should let you earn up to the Personal Allowance before income tax is deducted. Filling in the P46 allows your employer to give you the appropriate tax code.

Try this? But ye i apparantly sorted mine out then got the tax return letter months later.

Basically,no one ever knows what they're doing.

And wossi,thats total bs

sounds like you're gonna have to pay for someone elses mistakes. Grrr.

They'd have to deduct more tax per wage surely? How suckage.

Michael_10 · 7 Jan 2011 at 22:36

Should I talk to my manager tomorrow? will they be able to do anything? And even if I can't get the tax back until April there must be a way to stop them taking anymore? I've filled out forms they sent me and sent away a P46 over a month ago, I'm just confused about what to do now

LSEdwards · 7 Jan 2011 at 22:38

You won't have to wait until April if you can get the correct tax code and the payroll department have correctly recorded your gross pay to date and tax deducted to date in the tax year. Pay As You Earn (PAYE) is calculated on a running total of what you have earned less the allowances you are entitled to in each tax year.

If this is your first and only job, it should be very straightforward. Things are a bit more complicated if you have worked elsewhere, in which case you need to get a P45 from your previous job (assuming you have left).

Michael_10 · 7 Jan 2011 at 22:44

My P45 is apparantly being sent out in the post, but I still don't understand why I wasn't taxed for 2 weeks and then I was taxed again??

Electronic Dave · 7 Jan 2011 at 22:44

Maybe this'll help

http://www.listentotaxman.com/index...code=BR/1&period=1&ingr=3887&Submit=Calculate

I also had a Saturday job in Boots 10 years ago - I got mucked about with my contract and the extra time. Then had a tax bill through for £700 - after sending forms and payslips to the Tax Office it was reassed and I only owed £16. Boots payroll department made some massive balls ups! Some weeks I didn't get paid and had to take a cash sub. I hope you've kept your payslips and P60s.

Wossi · 7 Jan 2011 at 22:47

Chizuna said:
Try this? But ye i apparantly sorted mine out then got the tax return letter months later.

Basically,no one ever knows what they're doing.

And wossi,thats total bs sounds like you're gonna have to pay for someone elses mistakes. Grrr.

They'd have to deduct more tax per wage surely? How suckage.

The annoying thing is that all the paperwork we sent the tax man in regards to this since 2007 is correct, they never bother updating the tax code and we then got a new FD so at a quick glance he didn't think there was a problem.

Of course, in the tax man's eyes I'm at fault

Just hope they don't look too far back now.

For the £820 they are spreading it out over 12 months starting April this year, after that I have no idea what the hell is going to happen. I thought having a company car would be cool

jp_bl_68 · 7 Jan 2011 at 22:54

Electronic Dave said:
http://www.listentotaxman.com/index...code=BR/1&period=1&ingr=3887&Submit=Calculate

Is that site reliable?

I earn £5.93 an hour, work between 35 and 60 hours a week, and about 27% of my wage is lost to income tax and NI contributions. According to that site I should be paying closer to 15% (assuming I work 37.5 hours a week):

Is that right? I know nothing about taxation. Am I due a rebate?

Electronic Dave · 7 Jan 2011 at 22:59

jp_bl_68 said:
Is that site reliable?

I earn £5.93 an hour, work between 35 and 60 hours a week, and about 27% of my wage is lost to income tax and NI contributions. According to that site I should be paying closer to 15% (assuming I work 37.5 hours a week):

Is that right? I know nothing about taxation. Am I due a rebate?

Minimum wage went up in October 2010 - were you on a lower amount before? Also your hours fluctuate so your earning more and therefore taxed more each week. The calculator I think assumes you get the same fixed amount in wages each pay period. If you received the same amount of wages each week then the amount of tax & N.I. is usually the same each week. The tax is worked out by taking your gross annual amount, but yours is not fixed.

Swordfish · 7 Jan 2011 at 23:05

jp_bl_68 said:
Is that site reliable?

I earn £5.93 an hour, work between 35 and 60 hours a week, and about 27% of my wage is lost to income tax and NI contributions. According to that site I should be paying closer to 15% (assuming I work 37.5 hours a week):

Is that right? I know nothing about taxation. Am I due a rebate?

Just used it to check my pay slips and it is spot on. The amount of tax you pay will depend on the hours you work remember.

LSEdwards · 7 Jan 2011 at 23:06

jp_bl_68 said:
Is that site reliable?

I earn £5.93 an hour, work between 35 and 60 hours a week, and about 27% of my wage is lost to income tax and NI contributions. According to that site I should be paying closer to 15% (assuming I work 37.5 hours a week):

Is that right? I know nothing about taxation. Am I due a rebate?

It looks reasonable to me. Can you have a look on your latest payslip and see what the tax code is? It should be 647L I think, reflecting the maximum personal allowance.

There is a calculator on the HMRC website where you can check your NI:
http://nicecalculator.hmrc.gov.uk/Class1NICs1.aspx