P800 Tax Calculation help

[SXGuy]

Re: P800 Tax Calculation help

no its correct, they want her to replay £124.45 each year for 2 years.

it doesnt say she owes £622. thats gross deduction.

to be able to repay 124.45 in tax for the year, they have to reduce her tax code by the gross amount.

622 / 100 * 20% = 124.40

Personal Allowance £9440
Underpayment Restriction -£622
a tax free amount of £8818

she still receives the difference between 622 and 124.45 as pay

[di30]

Re: P800 Tax Calculation help

no its correct, they want her to replay £124.45 each year for 2 years.

it doesnt say she owes £622. thats gross deduction.

to be able to repay 124.45 in tax for the year, they have to reduce her tax code by the gross amount.

622 / 100 * 20% = 124.40

Personal Allowance £9440
Underpayment Restriction -£622
a tax free amount of £8818

she still receives the difference between 622 and 124.45 as pay

Hi

Oh right, thanks.
See told you I was confused as well lol.
I thought where it said on the tax coding notice above (Underpayment Restriction) £622, it was what she did originally owe before deducting the refund that would have been due to her.

I will show her what you said, it's easier than me explaining I think lol.

So with the £124.45 is that spread just for the year then with using the refund then I take it?

thanks.

[SXGuy]

Re: P800 Tax Calculation help

yep, thats spread over 1 year split into the amount of pay periods she receives, so monthly being 12, weekly being 52 etc.

Plus her new tax code is not that much more than her current one, because of the increase in tax allowance next year, so i doubt she will see any difference in wage.

[di30]

Re: P800 Tax Calculation help

yep, thats spread over 1 year split into the amount of pay periods she receives, so monthly being 12, weekly being 52 etc.

Plus her new tax code is not that much more than her current one, because of the increase in tax allowance next year, so i doubt she will see any difference in wage.

Excellent, thank you.
I have just worked it out then that she will owe £124.46 for the following year, so yes getting it now lol, cheers.

Meanwhile, "If" it ends up being the responsibility of the employer, the HMRC will put the tax code right through the employer and refund the one owing?

[SXGuy]

Re: P800 Tax Calculation help

yeah thats how they should do it.

If they find in her favour, the tax code will be changed once again and she will get a tax rebate the following month for whatever shes paid up to that point.

Refunds are different to payments, refunds are paid in full in one pay period, underpayments are split over the year.

[di30]

Re: P800 Tax Calculation help

Cheers

So a cheque for the overpayment they were to originally refund her for the 2008-09 period, then whatever they overtaxed her by then?

[SXGuy]

Re: P800 Tax Calculation help

that im not sure, never dealt with this with such a big amount before.

Since they have already used the overpayment to reduce the underpayment, they may just refund the whole lot via her tax code, or write a cheque for the overpayment and recode her for the underpayment balance.

more likely be the latter though i reckon.

[di30]

Re: P800 Tax Calculation help

Ok thank you.

She did say at some point, if she can manage to pay them in full she will try to do so, if they didnt include the overpayment due to her from an earlier year, she would owe something in the region of £698 approx.

With using the overpayment of £449, that would then leave her with £298.91.

I did say if she could manage the £298.91, they did say about using the overpayment anyway on top of that anyway, so she wouldnt have to pay the full total.

If she decided to do this then I assume she would have to send them the payment by cheque, or can she do this by debit card do you know please?

Sorry for all the questions, I thought I would ask this in advance as it's something I think she will be asking next lol, cheers.

[SXGuy]

Re: P800 Tax Calculation help

I wouldnt bother Di, let them take it from her tax code.

Its a minimal amount each month, her tax code is still higher than the current years 810L and she wont see any difference to her wage packet, tell her to spend the money on herself.

But if she did wish to repay it in one go, she would need to telephone HMRC PAYE (cardiff i think) and ask them how she can do it that way, they would have to reissue a new tax code at that point.

[di30]

Re: P800 Tax Calculation help

I wouldnt bother Di, let them take it from her tax code.

Its a minimal amount each month, her tax code is still higher than the current years 810L and she wont see any difference to her wage packet, tell her to spend the money on herself.

But if she did wish to repay it in one go, she would need to telephone HMRC PAYE (cardiff i think) and ask them how she can do it that way, they would have to reissue a new tax code at that point.

Cheers

Yes me too, it's hardly any difference whatsoever, about £2.59 a week? about isn't it? lol.

Okay will let her know anyway, and yes it's Cardiff dealing with her's.

Thank you "again" lol.

[di30]

Re: P800 Tax Calculation help

Asked "Ju" for any updates but other than the new coding notice, she not heard anything at all.

I said maybe its best to just leave them to it, as it will probably take some time.

She did ask, if the HMRC found that she did not at all sign the P46, is it likely that it will go in her favour? or can the HMRC still say the employer still done this in good faith?

Not sure about that, so could not give her a firm answer, but just said if they think it's down to the employer, then they will put things right.

[SXGuy]

Re: P800 Tax Calculation help

Cant speculate, best to wait for the outcome and take it from there.

[di30]

Re: P800 Tax Calculation help

My mate called by today.........

No news on this one yet, no letter of acknowledgement either, unless they won't bother now until they resolved the matter.

Just wanted to update you, although no real update really lol.

[cymruambyth]

Re: P800 Tax Calculation help

There was a 5 week reply in November.........still waiting!!!

[di30]

Re: P800 Tax Calculation help

There was a 5 week reply in November.........still waiting!!!

Your still waiting to hear as well then Cym?

I think it was December 2012 when she sent the info back off to them, so that's got to be 12 weeks or more???