Just found a HMRC letter on my doormat dated January 2016.. presumably one of my charming neighbours took it in by accident, has cleaned out their house today and found it. Apparently my tax code for April 2016 - 2017, so the newly began tax year - is 0T: I have a personal allowance of £0, and I certainly don't earn enough to have anything less than the usual personal allowance. I receive(d) no perks other than my PAYE salary too.
Obviously I'll be giving them a ring tomorrow, but does anyone else know why they would've done this for a brand new tax year (when, clearly I haven't touched my personal allowance) and how difficult it's going to be to get them to fix it? A bit confusing as I'm getting my own company off the ground at the moment, and would like my personal affairs to be pretty simple!
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BUT: Have you recently changed jobs without a P45?
That can sometimes explain it
Although would the 0T tax code follow me on into this tax year?
Edit: Actually, Jan's payslip says 1060L - so I did have a normal tax code at the time the letter was sent out.
It's just totally confused me, as I edited above - as of Jan (when this letter was sent out) I had a normal tax code.
If yes they might be trying to get back underpaid tax.
I am so blown away with that I still have not yet managed to regain my punctuation skills
A call to HMRC should cover it, but you may be hit in April. Any changes should backdate to the start of the tax year so you'll get it back in May
Back of the envelope calculations show I should be owed money, if anything. I spent 6 months of 15/16 working at one salary, then 4 months working at a slightly higher one. That's the last thing I expected to hear to be honest, so that makes a pleasant surprise! Fingers crossed I'll get the same service.
If you are fairly simple PAYE they are okay. I've had two employments for a number of years, one as a company director, and never had any problems but this year my pension contributions seem to have triggered something erroneous.
I rang up HMRC and it was because of a delay in seeing my P45 from the old job i.e. the thought I had two jobs. It was resolved quickly and my pay is now taxed at the correct rate, but when I will see a rebate I don't know just yet,
I saw this every month when I used to work on the payroll of a medium sized company. We'd have about 20 new hires every month and at least 10 of them would be put on zero personal allowance in their second month. Most would get 0T or BR (20% tax on all earnings for the year), but some would get D0 or D1 (40% or 45% tax on all income).
I was able to call people at the time and get them on to HMRC before the pay was done, or call HMRC about the extreme cases, but in other companies the people doing the payroll won't have the time or inclination.
She said there were no notes on my account and it was a mystery... and then sounded a bit confused and asked me my salary. Turns out they incorrectly had £133,000 down. (For what it's worth, even if someone passed my salary around the office on a scrap of paper, there's no way you could get that number from scruffy hand-writing or even mishearing.)
Must say, I'm quite impressed with the HMRC Personal Tax Account online too - if I had had that to begin with I could've spotted the error myself. That said - a bit depressing to see I'll be 68 when I can retire.. and it's bound to go up again in the next 45 years! Too much for a Monday morning.