PAYE confusion

[nimblejack]

Hi,

I apologise if this is in the wrong section, I just need a bit of help from anyone who knows about this please.

 

I have always worked and paid tax.

Last year in March, I lost my job due to the pandemic. I was made redundant but received no redundancy pay as I had not been there for 2 years.

 

I then claimed benefits and new style JSA until I managed to get another job in August. I then again lost this job in January thanks to Covid and restarted my claim for JSA as I still had a few weeks left of the 26 you are allowed to claim.

 

as this was sorting itself out, I got another job. Cancelled my claim for JSA and have began the job.

 

My personal tax account lists all the jobs I have had since April 2020 and the JSA. I have already paid around £250 in tax and am still being deducted tax each week.

 

My estimated earnings are over £39,000 for some reason and have no idea how this is possible. I have worked out that I won't have even earned my tax free amount. My actual earnings including all jobs and JSA will be approx £11,000 and my tax code is 1381MX

 

Will I be able to get back all the tax I have paid this year? I know I might sound a bit stupid but having always worked and never had this happen before, I am not sure how this works.

 

Do I need to call the tax office and ask about this high estimation? Many thanks for any help.

[anmarj]

If you have a government gateway check that. My other half had issue where Jsa has not issued P45, so HmRc too them down for having two jobs, although they only had one. It maybe jsa have done the same, hmrc will take the details over the phone and sort it out. 

[nimblejack]

Ok thanks, maybe that's the problem. I gave my new employer  my P45 from old job that ended January.

I've has since had a P45 come through the post yesterday from JSA so I don't know what to do unless I take that one in to work as well. I think I will ring up tomorrow and ask what I need to do to sort this out. Did your other half get the tax back?

I think I shouldn't pay any at all this year. Thanks for replying

[anmarj]

They did, the person at hmrc sorted it in five minutes and employer got notified and the next wage was showing correct tax code.  You should of had two p45’s from jsa, did you get two?

[nimblejack]

Yes I got one in August when I got a job and then I've got this one that came yesterday even though I only had one payment made. I think I have got the right tax code but still don't understand why the estimate is so high.

I definitely shouldn't pay tax this year though I'm sure so hopefully I will get that back but will have to wait until April at earliest unfortunately. 

[slick132]

Hi Nimble,

 

Sorry I've not commented sooner but I've only just become aware of your posts here.

 

1. Does the new P45 accurately reflect the total employment pay and JSA (before tax) you've received since 6/4/20 ?

 

2. What tax code does it quote exactly ?

 

Take and keep a copy of the P45 and give it to your new employer. They should be able to use it  to ensure you pay the correct tax in the current year ending 5/4/21. Any tax overpaid so far should be repaid in your salary or wage when they use the new tax code, so long as it isn't a Month 1 or X code.

On 09/02/2021 at 11:11, nimblejack said:

My personal tax account lists all the jobs I have had since April 2020 and the JSA

 

Are you referring here to your Gov Gateway a/c. If so, it doesn't matter too much how their system gets it wrong in estimating your income so very high. If your new employer doesn't refund tax overpaid, you can get it back after 5/4/21 via HMRC when they review your pay and tax from all sources for the year.

 

Brief answers to my Q's above please.

[nimblejack]

Hi,

I lost my job last March, claimed JSA...got a job August-December..then got laid off so claimed JSA again very briefly...then got another job in January.

I have not earned enough to have paid any tax and so am trying to claim it back. However, HMRC are making it very difficult.

On my personal tax account online (gov gateway) I can clearly see both jobs and earnings reported. Both JSA claims say £0.

 

I contacted HMRC who told me they needed info from JSA to process my claim. I spoke with them and then  HMRC told me they had now received two P45s from JSA but were now waiting for the P60 from my employer.

 

They now have and say that they need another P60 from my previous employer that I worked for August to December. I think that this is not correct and that I will only receive a P60 from my current employer, the one I started to work for in January? As I left that other job in December, I was issued a P45 and gave this to my current employer. Surely it's the P45 the require and should have already received?

 

The earnings are showing online and so I feel like I've hit a brick wall with this unless the adviser who I spoke to on the tax enquiry line is wrong.

 

i have done everything they asked. I have been on the phone again after somebody told me what I had said was correct and the guy on the phone at HMRC said he is sorry that the other person gave me wrong information.

 

My tax rebate has now been calculated and I have to wait for my letter.

 

So if anyone else gets told similar to what I had first been told, it is wrong. Get back in touch and tell them so.

Thanks for replying DX

 

[slick132]

Hi again Nimble,

 

HMRC aren't waiting for a P60 from your old employer - a P60 only applies to an employee still employed at the end of the tax year (5th April each year).

 

But they DO need the data confirmed by the old employer, either from a P45 or from the year end report made by the employer.

 

Just into the new tax year, HMRC are busy reviewing PAYE and Self Assessment accounts but, if you don't get the refund by 30th April, contact them again telling them the refund is needed urgently (if that's the case).

 

Keep us updated, thanks.

[nimblejack]

Hi 

Thank you for that. Yes all is now sorted. They had already got the P45 and all the information required, it was just the previous adviser on the phone that had got it wrong. I rang back stating everything that you said and it was all confirmed as correct. I am now waiting for my letter and then I can apply for a bank transfer. Happy days!