Any Payroll / Tax people that can help

[Disneymaddaddy]

Hi all

I changed jobs in July this year. My last payslip from my previous employer showed my tax code as 1257L and was in my p45 which I sent to my new employer.

My first pay from current employer was only a couple of weeks and my tax code was still showing on their payslip as 1257L.

The following two months pay slips are the same amount and show my tax code as 806L M1.

Even though I am on a higher salary my take home is near enough the same as my previous employer which seems odd

Would anyone know why my tax code changed?

[Smilesonfaces]

If your tax code comes down then you will pay more tax. Your old code means the first £12570 pa is tax free, the new code it is only £8060 pa tax free. Do you receive some company benefits in kind now that you didn’t receive before ? If your code has changed you should have been sent a new tax code. You need really to contact HMRC to see how the new code has been made up.

gov.uk/check-income-tax-current-year

[Gev]

Had you already been paid once before the P45 was applied? If so, HMRC can think you have more than one employment. I agree, best have a chat with HMRC 0300 200 3300. X

[Disneymaddaddy]

Hi thanks for the reply.

No, no new benefits with the new job. Seems a bit to be earning less lol although I love the new job!

I went on the checker and it is showing as 806L but not had any letter about it.

[Disneymaddaddy]

Originally Posted by Gev

Had you already been paid once before the P45 was applied? If so, HMRC can think you have more than one employment. I agree, best have a chat with HMRC 0300 200 3300. X

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Hi Gev

I believe that they had my p45 in time for my first pay but I will check with HMRC thank you

[Guest]

I wonder if they have put you on emergency tax? They sometimes do that until they have your P45 etc, it usually rights itself eventually and you get any excess tax paid back.
Can your new payroll not sort it for you, or failing that phone HMRC as suggested.

[Disneymaddaddy]

Originally Posted by Nanna Frozen

I wonder if they have put you on emergency tax? They sometimes do that until they have your P45 etc, it usually rights itself eventually and you get any excess tax paid back.
Can your new payroll not sort it for you, or failing that phone HMRC as suggested.

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I have sent payroll an email tonight and if unable to help I will call HMRC just a shame to be earning more money but taking less home!

[Rae21]

M1 after your tax code is an emergency tax code - means they calculate your tax only on what you are paid in the current pay period (month 1)

[RachaelC]

I’d contact HMRC. You may have underpaid tax in your previous role that they’re now getting you to pay back, but there’s usually correspondence from them to explain the situation.

[Gev]

You payroll team won’t be able to sort it, I’m afraid. They are required to use whatever code HMRC issue. Earnings and tax are reported under Real Time Information and tax codes are issued to employers electronically, fairly quickly. Best give them a call. Hope you get it sorted.