The Tax Man is confused

The Tax Man is confused – and so am I !!!

I received a warning from a work colleague about a change in tax code. She has just received a tax code of K**  ….Yep, the code that means you owe money BEFORE you have even earned it.

Well, I have a silly tax code at the moment (will have to pay something due to my rental income) so haven’t complained about it yet as it will offset any rental tax owned., so I am using it as a bit of a buffer.

I thought I would ring up and enquire on my tax coding. In typical HMRC style – it took me 30 minutes of waiting in the queue before I was able to talk to an ‘advisor’.

I then spend a really useful 10 minutes talking to him about my code. He was really good and sorted out everything, top marks to him – worth the wait!

Basically:

1) I have a K*** code notice in the post !!

2) They think I have TWO – if not THREE employers – so have generated a K*** code for me, great! They think I am going to earn over £120,000 !!! (I wish!!)

So I explained that my very old employer is just that – and can go – so he made sure this was removed. He then explained that there was a really strange record on my account – basically it looks like I am employed by my current employer TWICE. I explained the situation over the sale of the company and after asking what my actual annual salary should be for this year and reeling off a few numbers off my payslips, he calculated my new PROPER tax code – Hurray!! a real tax code ending in ‘L’.

My only problem now, is that I will be paid next Friday and am likely to be paid using this horrid K*** code. So I will pay too much tax, but I should get some of this back in my subsequent pay days – I only have 3 more pay days left (including next Friday’s).

So every penny will count for me, as currently I am jobless when my redundancy notice ends. 😦

I would rather the money now that have to wait until the end of the tax year to get this vital money back.

Could an employer get their payroll any more mixed up than this?

Has anyone had similar issues?

Interview

Had a full-on interview this week for a new job.

Not really sure if I want to work at the place, I had heard bad reports from network contacts but visiting the place and meeting the interviewers has altered my perception of the office.

I had to complete 2 online tests – lots of questions in less time that it is possible to answer them in. Its ages since I have had to sit one of these types of tests and it was quite a traumatic experience. I have completed them and I know I have made mistakes, so it is now down to my interview more than anything as to whether I will be offered a job.

I think I was the first one in, so now have to wait while they interview everyone else and then await a call to say whether I was successful or not. I am not holding out much hope at the moment as others from work have applied there too (for different positions) and have received varying levels of success/failure. The common theme is that the interview is hard and I really don’t think I will get an offer – there is only one job going for the role I have applied for. The main aspect for me is that it was a hard interview so it has helped me learn and gain experience for the next one.

 

 

 

Uncertainty

Getting a really bad vibe about the company I work for and all this redundancy situation.

I have been given my redundancy notice (which although group consultation is still active – is legal according to UK law!).

The parent company has notified us that we ceased employment with them (on the sale day) and now all liability for pay and benefits resides with the ‘child company’. With the currently lack of communication from the ‘child company’, I am beginning to wonder if it can actually stand on its own two feet and if these liabilities are more than it can bear.

My worry is that the next announcement will be the one saying that the company has gone into administration – thereby relinquishing its liability to pay us anything.

Worrying times.. just when I was getting to grips with FI, I am now going to have to look to using this to support my life even though I haven’t reach the FI crossover point yet. At least I know I can survive without a job for a period of time using my FI savings and passive income. If I can keep my expenses down to the bear minimum then maybe I will be living a semi-FI life after all.

I need to start researching into what I can continue to do once I become unemployed “or semi-retired” – this status affects such things as: car insurance, mortgage, bank accounts, pension, health insurance to name but a few in the UK.

It is surprising how many things are affected by unemployment/FI – small print clauses such as minimum salary/income levels, minimum deposit levels, etc… for accounts/mortgages/insurance to be valid.

When I read the US FI blogs, no one mentions that they are penalised by their status becoming FI – how do they describe themselves to these companies? Is it different in the US? I have seen nothing mentioned about other FI-achievers having to pay more for such mandatory insurances and expenses? Only comment I have seen are on the US ones about health cover.

I find it strange that being unemployed actually puts your car insurance up as they say you drive more? When in actual fact I have found, based on previous experience, the opposite it true, I am driving LESS because I am not commuting. Given that I commute nearly 26,000 miles a year, unemployment actually reduces this down to the odd trip to the shops and back, or to interviews.

Fingers-crossed that I will hear better news. I have applied for 3 jobs this week and have not heard anything other than the ‘thanks for applying’ automated response. Jobs are few and far between in the line of work I am qualified to do – unless I want to relocate/travel to London. There is a job available that is so similar to my past job that I am not sure I could do it – there is not enough change in the working role to make it feel like it will be different/challenging and maintain my interest/motivation.

Agents are calling and offering me anything – stuff like a call-centre team leader job – (apologies to call-centre leaders) – but I don’t see how I am qualified to do this role when I run IT projects.

Just because I have updated my work profile on job sites to indicate that I am available for new challenges?

Funny, since making this change, I am also getting bombarded with stupid emails about ‘self-employment’ opportunities (“work from home/join our never-heard-of-company and earn extra cash from your home selling xxxxx which I guess no-one ever wants or needs“) and ‘CV review’ companies offering their services – for a fee of course!

At least I have my pay for last month, I am just wondering if I will get next month’s or not.

Now off to chase the agents about the jobs I have applied for and see if there is anything new, maybe I will have to wait until I am released and then look to do contracting work on a day rate basis.