Tax code has changed, im being taxed a lot more than what I usually am

DJMK4

DJMK4

DJMK4

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Basically the last year I have taken on some overtime, and I had a letter a few weeks ago advising my tax code has changed, so I thought nothing of it until today when I have been told I am now down £100 on my latest pay packet because of my new tax code.

Whats the procedure with this? is this the correct procedure, why wasnt my tax changed when I first started the overtime 8 months ago?
 
610L, I have just done a listen to tax man, and I should have a monthly deduction of £493, however this month I have been deducted £558, do you think this is money I owe them? then next month It should go back to normal?
 
More than likely money you owe them.

However, nothing wrong with a phone call to find out :)

ags
 
A new tax code has nothing to do with you doing overtime. You probably underpaid tax last year so your tax code has been readjusted to pay it back.
 
DJMK4 said:
610L, I have just done a listen to tax man, and I should have a monthly deduction of £493, however this month I have been deducted £558, do you think this is money I owe them? then next month It should go back to normal?
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your tax free allowance has been reduced to £6100

its normally £6475

so it looks as though you owe some tax.
 
Sounds like they have operated a cumulative code, which means that while your normal monthly deductions haven't changed that much, as this month is month 10 it has collected the extra tax from months 1-9 as well. The system is designed to issue a week 1/month 1 tax code(which means every month is taken in isolation) where the effect is over a certain level but it is obviously lower than the threshold in this case.
 
Phoned them, it was to do with my private medical insurance, paid for by the company = ~£350 p/a however I have to pay the tax which works out at £6 a month.

I phoned the Inland Revenue twice, first bloke said this tax code will be permanent and the increased deduction I seen this month will be permanent also, wasnt happy about that, so I phoned back and it turns out that instead of my medical insurance coming out on an month-by-month basis, they hadnt collected the tax for this year, so they took it out in one lump sum, then they proceeded to tell me that this was the same for the 1st year I was with the company, so that will come out probably when the new tax year starts in April 2011.

It should go back to normal then, I should see my normal deductions (prior to this) + £6 deductions for medical. But I will still have the same tax code.
 
I had my tax code changed because of medical insurance as well, got an email from my work saying that it is a mistake on the part of HMRC and that payroll won't be collecting it.
 
Jokester said:
I do indeed, not sure what's suddenly changed in the past year for them to suddenly decide I need to pay more tax over it.
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Im more worried about the fact that they took it out in one lump sum, it's supposed to be on a month by month basis. £6 a month is nothing to me really, but when you have 2 years of unpaid medical tax to pay and its sudden.

Not fussed by the whole thing aslong as it goes back to normal its just I hate my pay being messed about by them :mad:
 
Reality|Bites said:
What's medical insurance? Do you lot not use the NHS?
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a lot of companies provide private medical cover for employees. the employees get better care and the employer prob gets less time off being taken

the employer pays for it but the employee has to pay tax on the value of it
 
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