Tax advice

mingmong

--- I know, avoid paying and write off as much as you can!

Any tax intellect’s in here?

Seriously… I noticed last month that my tax code on my payslip was suspect. I did a survey of the rest of the guys in the office and I was the only one on ‘BR’

"BR
This code is an abbreviation of "Basic Rate". It is applied by HMRC to employees who are liable to pay income tax at the basic rate, i.e. 20%. You may be given this tax code if you have two jobs, or a pension in addition to your job"

As I don't have two jobs or a pension (as yet :oops:) I really shouldn't have been paying under this code. Whoops.

Therefore:

a) Am I responsible for my company's tax misalignment of me?
b) If this has been this way for some years, am I responsible for the deficit - Will HMRC be calling at the door for the money back?
c) If YES, to (a) and (b) - What's the best thing to do - barring emigration?

Anyone else been in this pickle?

Slow Downcp

Depends whether you fall into higher rate tax - if not then you'll be due a refund. You need to check your payslips for last year (or ideally P60).

BR tax is also applied if you start a job and no P45 is available from previous employer.

If the BR is incorrrect, then phone IR - they should be able to advise why it's at BR, and change if relevant

mingmong

Cheers SD.

mingmong

Slow Downcp wrote:

Depends whether you fall into higher rate tax - if not then you'll be due a refund. You need to check your payslips for last year (or ideally P60).

BR tax is also applied if you start a job and no P45 is available from previous employer.

If the BR is incorrrect, then phone IR - they should be able to advise why it's at BR, and change if relevant

Phoned IR. They hadn't heard of my last employer at all. Stated that I'd not received the 6K tax relief for the respective 6 years I've been working here. However, this is marred with the fact that I have previously been in the higher tax bracket so I will have paid under where I should have been for a few years also.

Should level it'self +/- The IR believe I'm due some money back. That's the new steel HT project paid for then

Slow Downcp

Even with BR though, you would pay higher rate tax when you hit the threshold.

Don't forget my commission....

mingmong

Slow Downcp wrote:

Even with BR though, you would pay higher rate tax when you hit the threshold.

Don't forget my commission....

:shock: Not another bill! :shock:

Thanks for that. Put my mind at rest. Haven't got a huge tax bill coming.

Bring on the new steed