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Author Topic: Tax Bill  (Read 5137 times)

taliahad

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Tax Bill
« on: 19-07-19, 12:58PM »
I've just received a tax bill from HMRC, which I'm fuming about.  According to our wages department this is because of the extra pay month in the last tax year but the amount I've been billed almost as much as my yearly contribution is anyway.  I've queried it with HMRC but do not understand why I'm being asked to pay back so much.

I did up my pension contributions last year and wondered if that could be the cause of it but I'm told that's not correct and it's all to do with this extra pay month.  Has anyone else had this issue?

Red75

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Re: Tax Bill
« Reply #1 on: 19-07-19, 01:33PM »
I've had the same thing. Underpaid income tax by £175 last year. HMRC's calculations seem correct so I think the problem is with Tesco payroll. Start paying it back in April 2020, dissapointed, eats up quite a bit of the pay rise.

Baker1961

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Re: Tax Bill
« Reply #2 on: 19-07-19, 02:16PM »
£210 I have to pay and its messed up my tax credits no longer get it as I owe them money as I earned to much last year

just curious

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Re: Tax Bill
« Reply #3 on: 19-07-19, 02:21PM »
So if there was an extra pay month in last years pay , then surely any tax , national insurance contributions , pension contributions ( court fines / payments if any one has them ) etc should have been deducted at source ?
Could this also potentially mess around with peoples redundancy payments if they were made redundant ? .
Only Tosco could mess around with the wage payments and figures and make a mess of things - hence the accounting scandal , pension black hole , and creditors not being paid correctly / on time . Wouldn't trust this company with a pound let alone millions / billions  :-X :-X.

80377494

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Re: Tax Bill
« Reply #4 on: 19-07-19, 02:52PM »
Have any of you read the brief on line as to why it has happened. Here's a snippet:

Our four-weekly pay periods mean we have 13 pay periods in a tax year, but occasionally there will be 14, as will be the case in 2018/19.

On the 14th pay day in 2018/19 (5 April 2019), colleagues will be taxed as per the 13th pay day (8 March 2019), meaning there will be no immediate impact and colleagues do not need to take action.

This means, however, that colleagues will receive four weeks extra personal tax allowances in the tax year 2018/19 and in most cases therefore, pay less tax than they should in that tax year.

When the tax year has closed, HMRC will review how much tax each colleague has paid in 2018/19 and will make contact directly with each colleague to confirm how much they owe and agree how they will pay this back.

80377494

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Re: Tax Bill
« Reply #5 on: 19-07-19, 02:58PM »
This is the scenario for a colleague who pays 20% tax.


Sue has a tax code of 1185L with taxable earnings of £25,000 up to the pay day on 8 March 2019 (her 13th payment in the 2018/19 tax year). Sue’s taxable earnings from 9 March to the 5 April 2019 pay day (her 14th payment in the 2018/19 tax year) are £2,000, giving total taxable earnings of £27,000 for the 2018/19 tax year.

All of Sue’s 2018/19 personal allowances have been used against her first thirteen payments in the tax year. However, to prevent Sue’s 14th payment on 5 April 2019 being impacted as a result of this, Tesco follows HMRC guidelines and applies Sue’s normal tax code to this 14th payment, in other words the 14th pay period is treated as the 13th.

In September 2019 HMRC review Sue’s 2018/19 tax position and determine that she has underpaid by £182.31, which is the additional personal allowance received in her 5 April 2019 pay (11,850/13 x 20%).

HMRC agree to collect the unpaid tax of £182.31 in thirteen instalments through Sue’s 2020/21 tax code, meaning it will be split over her 13 pay periods.

tescopleb

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Re: Tax Bill
« Reply #6 on: 20-07-19, 08:52AM »
Tosco aren't the only company who pay 4 weekly, yet they seem to be the only ones who got themselves into this mess. It's not a new or unforseen event, PAYE should have taken care of it, so how/why did tosco let this happen? Something doesn't seem right.
 

just curious

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Re: Tax Bill
« Reply #7 on: 20-07-19, 09:33AM »
@tescopleb

Its probably another accounting irregularity , Tosco's  way of not paying there share of National Insurance contributions for each employee in there employment during the year it was due - using this sum of money to bolster its turn over / profit figures for the year ?.
XXX amount of money not given to the government for each employee multiplied by XXXXX amount of staff equals a very large sum of money that has been saved / banked by Tosco for its own bank balance instead of paying there contribution of the National Insurance due to the government for each employee ?  :-X  :-X

Nightworker23

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Re: Tax Bill
« Reply #8 on: 20-07-19, 09:53AM »
A few years ago, we used to get paid twice in April to round things off evenly at the end of the tax year.
This clearly became too much effort for the wages dept to deal with and was seen by big Dave as an unnecessary expense!

80377494

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Re: Tax Bill
« Reply #9 on: 20-07-19, 11:47AM »
Nightworker23 - but we would still have been paid on 05 April which is why there was a problem.

tesco-pleb - maybe the other companies who pay 4 weekly haven't had the problem yet. Just because they pay 4 weekly, it doesn't mean that they get paid the same dates as us.

mexicopete

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Re: Tax Bill
« Reply #10 on: 20-07-19, 02:58PM »
£210 I have to pay and its messed up my tax credits no longer get it as I owe them money as I earned to much last year

How come it is down to the employee to sort this mess out :question: When it has obviously been caused by Tosco..also why are Uselessdaw not sorting the mess caused by Tosco out :question: they take your union subs and do absolutely F all to earn them. >:( >:(
The worlds me lobster

tryitman

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Re: Tax Bill
« Reply #11 on: 20-07-19, 04:27PM »
Calm down. You will not win by getting angry.talk very nicely with taxman.they have all facts.there is no thing personal. Rules for every one.

an_anon

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Re: Tax Bill
« Reply #12 on: 20-07-19, 05:46PM »
There you go. Some semi-incomprehensible advice about always being nice will sort the matter out.

mexicopete

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Re: Tax Bill
« Reply #13 on: 20-07-19, 06:07PM »
@an_anon..being nice will never and I repeat never work in your favour with the Ar*eholes who run Tosco. It beggars belief what they allowed to do to staff without Uselessdaw intervening on our behalf. It would appear to me that they are now making their own Inland Revenue rues as they go along..I wonder why the Revenue have allowed this situation to occur. It also seems to be affecting employess Tax Credits which is also totally unacceptable.
The worlds me lobster

NightAndDay

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Re: Tax Bill
« Reply #14 on: 20-07-19, 06:44PM »
There's a reason why 1 in every 1,000 store manager has a degree, they're all thick as s***, Tescos "HR" in most cases is some old dingbat that's put 25 years into the business or 22 year old whos dad works high up in the company, neither of of them will have worked outside of Tesco or have obtained a degree in Personel development or have CIPD accreditation. It's actually worrying that Tesco is the market leader when you look at how ill equipped the senior team actually are.
« Last Edit: 20-07-19, 06:46PM by NightAndDay »

Freddyfrog999

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Re: Tax Bill
« Reply #15 on: 20-07-19, 07:52PM »
If you google 4 weekly pay and tax and have a read Tesco have actually followed the guidance correctly from the IRS as far as i can tell, as frustrating as it is, everyone in our store was briefed about this well over a year ago now. The problem stems from 4 weekly pay and how the tax year runs.

Nightworker23

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Re: Tax Bill
« Reply #16 on: 20-07-19, 07:57PM »
They could have just divided your tax allowance by 14 last year, but that would have just meant you'd have paid more tax each month last year.

Freddyfrog999

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Re: Tax Bill
« Reply #17 on: 20-07-19, 08:02PM »
Pretty sure they have to use the tax code provided by HMRC


How does this affect the Tax/NI calculation?

The NI calculation is performed exactly as it is for every other pay period.

The only change to the tax calculation is all employee are switched to a week1/month1 equivalent of their tax code. This will ignore any previous pay and tax for the year and perform the calculation solely on the gross taxable pay for the period. Your payroll software will do this automatically if processing week 53, 54 or 56.

While this is the correct method required by HMRC to deal with these extra periods it can cause some confusion. In some circumstances using a week1/month1 tax code for week 53 (54 or 56) can cause the employee to pay too little tax for the year. Should this happen the employee will receive a P800 from HMRC advising them on the calculated tax for the year and what is owed. HMRC will usually deal with this by issuing a new tax code for the employee to deduct the shortfall in tax in the following tax year.

As an employer you do not need to do anything in payroll until HMRC issue a change of tax code notice.

For further details on week 53 payments please refer to the HMRC CWG2 document “Employer Further Guide to PAYE and NICs” – Click here.
« Last Edit: 20-07-19, 08:09PM by Freddyfrog999 »

panther

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Re: Tax Bill
« Reply #18 on: 20-07-19, 08:28PM »
I too received a letter from HMRC saying I owe £183. What I don't understand is why the figure is so high? For an extra 4 weeks wage? I must ring them and find out, but interesting to see it's happened to so many

Baker1961

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Re: Tax Bill
« Reply #19 on: 20-07-19, 10:02PM »
What annoyed me I have lost my tax credits for this year as I owe them money they are taking back leaving me nothing what so ever ,this has cost me over 400 with the tax as well so no pay rise for me or a very little rise 

Expressdude2016

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Re: Tax Bill
« Reply #20 on: 20-07-19, 11:23PM »
It happens with all companies who pay 4 weekly. You aren’t paying any extra tax last year it balances out. If figure seems high it’s hmrc not Tesco that’s at fault. Yes I as much as I hate to say it have followed hmrc guidance on this occurrence.

kaled78

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Re: Tax Bill
« Reply #21 on: 21-07-19, 08:25AM »
When I did my self assessment I got stung for more tax because Tesco didn't tax me enough on my earnings.

Winner

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Re: Tax Bill
« Reply #22 on: 21-07-19, 03:56PM »
Yes as I got an extra month it has reduced the tax credits for me this year too.

Stevil

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Re: Tax Bill
« Reply #23 on: 21-07-19, 09:14PM »
another one here that has been stung for tax credits and DLA, 4 weeks extra pay and they have taken just over 80 quid a month off me, seems fair  >:(
also have to pay back just over 200 next year, luckily it will be a monthly payment so hopefully wont notice it as much

forrestgimp

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Re: Tax Bill
« Reply #24 on: 29-07-19, 08:29PM »
DLA is not means tested, you get it if you are entitled and it makes no difference to other benefits.