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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4186
Experience:  FCCA FCMA CGMA ACIS
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My employer has mis calculated my earnings since I began work

Customer Question

My employer has mis calculated my earnings since I began work with them in 2010.Most years I have been underpaid and one year I was overpaid .They are paying me the net amount and will be subject to tax and NI.
However for the year they are now deducting money from me, I have asked for the tax to be adjusted, ie returned to me but they state this is not necessary as have netted everything .Can you advise me please? HMRC state to write to them but are presently taking 14 weeks to reply.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith one of the experts on Just Answer and happy to be able to help you with your question. HMRC are rather exposed these days and taking an age to respond. As they also have a habit of getting hold of the wrong end of the stick, if they can even find the stick at all this odes not help either. I can only advise that you write to your tax office with your query and get them to adjust the position. The tax deducted will be in accordance with a tax code issued by HMRC. For the majority of people it will be 1060, reflecting the Personal Allowance. HMRC will advise you of any code number allocations and changes and it is essential that you check these for accuracy, HMRC may be deducting tax for gross paid income elsewhere eg benefits like State Pensions. If the tax code is wrong write to the relevant office, their address will be on the notification, and ask for the code to be amended. If the correct code is used then you will be tax neutral at the end of the tax year which is how PAYE is supposed to work. However, if the code is wrong, it doesn't!\ It can be a long and laborious process HMRC have got my initial coding wrong these 20 years. You could have knocked me down with a feather when this year they got it right first thump; well nearly! I do hope that I have been able to shed some light on what is happening and that my reply has been of assistance.
Customer: replied 2 years ago.
Hi the deduction is for 2012/2013 and is around £600 so is it the tax code for that year that is to be changed?
I did manage to speak to an HMRC advisor briefly who thought that the tax adjustment should be carried out by my employer.
Am I correct in saying that this deduction of £600 that is being done retrospectively ,would account for the sum after tax at 20percent ,of about £750 so I am due about £150 back ?
Thanks
Expert:  bigduckontax replied 2 years ago.
It is possible that that is what is occurring. Normally adjustments for the 12/13 tax year would be made in the 14/15 tax year. That is the normal procedure to prevent the 13/14 tax year being wrong as well and furher under deductions of tax being created. Using the year after makes recovery and life so much simpler.
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.