Wrong Tax Code?

Pulsedriver · 6 Jul 2007 at 17:40

Hey!

When I went back to my old job in February, I noticed instead of the usual 407L, 435L etc tax codes, that on my wageslips was

Tax Code BR CUM

Im pretty sure that is wrong, there is no figures, and my tax was a lot more than usual, so much so, that I was comparing wageslips from last year, and I was actually earning more after tax last year (in the same job) without the pay rise of £2k i'd supposedly got!

We were all made redundant in May, but on my P45, it says BR CUM as my tax code, I worry will a new employer use this same one? As im convinced it's wrong!

Also, how do I go about asking for the tax back for the extra i've paid over the last 4 months or so? Or do I just let it work itself out automatically?

Thanks,

Sean

SK07 · 6 Jul 2007 at 17:43

Phone the tax office up they should allocate you a tax code number then send it to your work. Your work should then sort that out and the rest of the tax money you shouldn't have been taxed should be given back to you.

Biohazard · 6 Jul 2007 at 17:44

0845 010 9000 General Help Line.

You've been paying 22% (if it is still that)

Pulsedriver · 6 Jul 2007 at 17:55

22% blimey! What is it normally then?

Thanks for the number too , im just on phone

alexakasloth · 6 Jul 2007 at 18:40

Isn't it usually 22% for over ~£5000 now :confused:

They took away the 10% bracket.

Guv · 6 Jul 2007 at 18:47

$loth said:
Isn't it usually 22% for over ~£5000 now They took away the 10% bracket.

Basic rate band changes from April 2008 to 20%

Spuds · 6 Jul 2007 at 18:52

BR Bad! BR is an emergency tax code with no tax free allowance so phone up the inland revenue and get it changed ASAP

Pulsedriver · 6 Jul 2007 at 19:07

Right,

Spoken to tax people;

They said they can't do anything til I start a new job, which is fair enough as I was made redundant and have not started a job yet, and then i'll ask them for a P46, NOT hand my P45 in.

Then I send it off to them and they allocate the correct code, and I get refund from April.

Pathetic though, when you think I worked for the company 5 years, when I came back they didnt even get me to send a P45 or anything, I just assumed they knew what they were doing.

Money for old rope springs to mind!

stoofa · 7 Jul 2007 at 00:11

Spuds said:
BR Bad! BR is an emergency tax code with no tax free allowance so phone up the inland revenue and get it changed ASAP

Ummmm....

BR - is used when all your income is taxed at the basic rate - currently 22 per cent.

davestar_delux · 7 Jul 2007 at 01:45

stoofa said:
Ummmm....

BR - is used when all your income is taxed at the basic rate - currently 22 per cent.

That's right. But your code ought to be something like 503L which allows you to earn £5035 per year without paying tax on it. This is called your tax-free allowance which everyone is entitled to. You are also entitled to earn upto around £2000 and only pay tax at 10%.

When on the code 503L basically your £5035 is spread out through the year rather than giving you your wages tax-free until you earn over that amount.

So on a wage of £1000 in one month you could get £5035 / 12 = £419 that is not taxed and then the remainder of your wage at the 10% and 22% rates.

1000
-96 PA
166 at 10% = 16.60
Remaining 738 at 22% = 162

TAX £178
PAY £822
So yeah you lose out a considerable amount being on BR and having your entire wage charged at 22%.

1000
-22% = 220
TAX £220
PAY £780

Biohazard · 7 Jul 2007 at 01:54

davestar_delux said:
166 at 10% = 16.60

As far as I understood the BR tax rate you paid 22% out of every pound, and there was no other entitlement taken into consideration. :confused:

davestar_delux · 7 Jul 2007 at 02:00

Biohazard said:
As far as I understood the BR tax rate you paid 22% out of every pound, and there was no other entitlement taken into consideration.

Nope you are allowed to earn an amount tax-free every year and a further amount on top of that at 10% (i'm not sure if the 10% still exists after the most recent budget).

I work for them doing exactly these kind of cases.

Here's a link detailing the rates: http://www.hmrc.gov.uk/rates/it.htm

Biohazard · 7 Jul 2007 at 02:10

Yeah I work for them too, but not doing tax cases!

I used to be a Payrol Admin as well. Been a while since I've looked at the books!

Pulsedriver · 7 Jul 2007 at 17:00

Id say about 3 wageslips of about £900 ish before tax.

So hopefully i'll get a few quid back! Prob about £100?

Guv · 7 Jul 2007 at 17:16

SeanyK said:
Id say about 3 wageslips of about £900 ish before tax.

So hopefully i'll get a few quid back! Prob about £100?

£900 a month gross would mean you paid £198 tax on the BR code.

On the 522L code you probably should have been on you'd pay ~£80 in tax.

So you should get back £198 - £80 = £118 x 3 = £354.

Jonny ///M · 7 Jul 2007 at 21:07

I still havent sorted my tax code out for the last year or so.....

I have two P60s sitting here from 05/06 and 06/07. One for £320 and the other for £950.....in each year i never made more than £4k so if i understand i wouldnt have been taxed at all?

If i call up and get my tax code changed from Br to whatever it should be how would i get the money back?

Biohazard · 7 Jul 2007 at 21:10

Phone them now, as you can only claim back so many years.

Jonny ///M · 7 Jul 2007 at 21:21

Biohazard said:
Phone them now, as you can only claim back so many years.

Haha oh ****........first i was told that!

As long as i get the £900 odd one im happy!

Guv · 7 Jul 2007 at 21:32

Jonny ///M said:
Haha oh ****........first i was told that!

As long as i get the £900 odd one im happy!

You shouldn't have a problem getting 05/06 or 06/07.
I know someone who just had 03/04 (i think) assessed and they didn't argue with it.

davestar_delux · 7 Jul 2007 at 22:24

You can claim back upto 6 tax years ago.