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?

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One thought on “The Tax Man is confused

  1. I’ve had a nice tax rebate before, due to being on the wrong tax code for nearly 3 years. These days, the only tiresome thing is filing my self assessment in time to account for rental income – I should be organised and sort it out as soon as I get it but I always leave it to the last minute!

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