Am I paying too much taxes?

[angelo98]

Hi all, I'm working as a postie for 1 month now, and in my last payslip I've paid 115£ in deductions which 36 for Employee NIC and 79 for Tax. My tax code is 478T/1 and it was changed, my previous tax code was 1257L/1 and I've paid fewer taxes. I think I'm paying too much taxes and my tax code is wrong, what can I do.

[RobertT]

Changing jobs or retiring can often mess up your tax codes, but according to the gov.uk website, the official meaning of a T tax code is:

Your tax code includes other calculations to work out your Personal Allowance

While this website says this:

Tax codes ending in T indicate there are items requiring review by your Inspector of Taxes.

HMRC should be telling RM which tax code to apply to your wages, so it's them you have to contact to query it. Details here.

[angelo98]

Changing jobs or retiring can often mess up your tax codes, but according to the gov.uk website, the official meaning of a T tax code is:

Your tax code includes other calculations to work out your Personal Allowance

While this website says this:

Tax codes ending in T indicate there are items requiring review by your Inspector of Taxes.

HMRC should be telling RM which tax code to apply to your wages, so it's them you have to contact to query it. Details here.

Thanks a lot for your answer

[koolishy67]

Emergency tax code

[Jefferson Starfish]

W1, M1 or X are emergency tax codes.

[Kenfandango]

What'll happen is either HMRC will send you a letter saying your tax code was wrong and they've had to recalculate (I got one after 3 months of RM because I'd done a lot of overtime, so I now pay more tax to cover what wasn't charged so I don't get a hefty bill when the tax year ends,)
Or
HMRC will wait until April, work out what you've overpaid and refund the difference. Usually a cheque, so keep an eye out for those brown envelopes!

[loyalsnail]

What tax code were you on with your previous employer?

If you have no benefits and don't earn over £100k, as a general rule there's no way you should be on anything other than 1257L

[Tamsk]

If you have no benefits and don't earn over £100k, as a general rule there's no way you should be on anything other than 1257L

*1269L if you're claiming uniform laundry allowance (which you should be).

[smok3y666]

If you have no benefits and don't earn over £100k, as a general rule there's no way you should be on anything other than 1257L

*1269L if you're claiming uniform laundry allowance (which you should be).

Claimed. Thanks foir reminding me. Took like 5 minutes.

[bustedflush]

Hi all, I'm working as a postie for 1 month now, and in my last payslip I've paid 115£ in deductions which 36 for Employee NIC and 79 for Tax. My tax code is 478T/1 and it was changed, my previous tax code was 1257L/1 and I've paid fewer taxes. I think I'm paying too much taxes and my tax code is wrong, what can I do.

You are on a default low tax-free allowance until HMRC get the details of your employment from RM.

You shouldn't have to contact HMRC yourself, but RM will update them within a short time of your commencement of employment.

When they do, you'll either get a single rebate via your wages for the overpaid amount (if it is overpaid) or you'll find you pay no tax for a little while until you 'catch up' with the annual tax tables for the weekly paid, then you'll resume on the correct RM 1269L code.

This shouldn't happen if you handed RM the correct p45 from previous employment.

HMRC:

You may be put on an emergency tax code if HMRC does not get your income details in time after a change in circumstances such as:

a new job
working for an employer after being self-employed
getting company benefits or the State Pension
Emergency tax codes are temporary. HMRC will usually update your tax code when you or your employer give them your correct details. If your change in circumstances means you have not paid the right amount of tax, you’ll stay on the emergency tax code until you’ve paid the correct tax for the year.

Updating your details
Your employer can help you update your tax code by sending details about your previous income or pension to HMRC.

If you’ve started a new job
Give your employer your P45 from your previous job. If you do not have a P45, your employer should ask you for the information they need instead.

[Mazda]

I was on emergency tax from October when I went from being self employed to employed. It took a ten minute conversation to hmrc and all sorted.

[gimba]

Claimed. Thanks foir reminding me. Took like 5 minutes.

How did you claim that tax code, I'm on 1263L, and cant find anywhere online that lets you choose postman/delivery at £120, mine is default to £60

[yellowbelly]

Claimed. Thanks foir reminding me. Took like 5 minutes.

How did you claim that tax code, I'm on 1263L, and cant find anywhere online that lets you choose postman/delivery at £120, mine is default to £60

Perhaps it's a higher allowance rate to catch up with several tax years (not sure about that, not an expert).

But if it's not that, as you say - the standard is the 60 rate, mine is still at
120 for FY 22/23 haven't received tax paperwork for next year though so don't know if the rates
will drop. I had the allowance from a previous job and I don't recall having to apply for
it specifically to HMRC when I joined RM, HMRC seemed to just give it to me and perhaps
someone just clicked a button at the rate for my previous job for me and it's an error or it the
actual rate was 120 when I started with RM - don't recall.

It's better to have it than not but at the end of the day even with the larger 120 allowance it only gets me 24 back
over the year - a couple of hours OT though I suppose. 60 quid allowance gets you 12 quid back.

[kazardaimenu]

Yes.

[moonjaguar]

If you have no benefits and don't earn over £100k, as a general rule there's no way you should be on anything other than 1257L

*1269L if you're claiming uniform laundry allowance (which you should be).

Just seen this. Can we claim for laundry allowance if they give you the uniform?