This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Underpayment being taxed 143.48

joes1995
Posts:2
Joined:Tue Apr 16, 2019 8:49 am
Underpayment being taxed 143.48

Postby joes1995 » Fri Oct 09, 2020 3:18 pm

My partner has just started employment after being out of work since dec, he owes tax.
£6029
They are taking 143.4% of tax out of his wages.
Is there anything we can do to reduce payments?

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Underpayment being taxed 143.48

Postby robbob » Fri Oct 09, 2020 4:15 pm

They are taking 143.4% of tax out of his wages.
How is that possible? is that a typo?

bd6759
Posts:4270
Joined:Sat Feb 01, 2014 3:26 pm

Re: Underpayment being taxed 143.48

Postby bd6759 » Sat Oct 10, 2020 4:49 pm

They are taking 143.4% of tax out of his wages.
How is that possible? is that a typo?
Probably. Title says 143.48. The “%” is normally above the 8.

The question is bereft of detail, but the answer will usually be to contact HMRC. Maybe ask them to spread the collection over the next year.

someone
Posts:696
Joined:Mon Feb 13, 2017 10:09 am

Re: Underpayment being taxed 143.48

Postby someone » Sun Oct 11, 2020 4:05 am

143.48 is suspiciously close to 1/104 of 15000 (and even closer if you assume it's 50% of one weeks pay calculated daily in a leap year)

You don't say how much your partner is earning but I thought there was an upper limit to how much back tax would be collected such that you always keep 50% of your income.

I don't know if there are other limits and I don't know if the 50% limit includes NI.

If your partner was self employed and the 6029 was the tax due on Jan 31 2020 then it's likely it included a payment on account that is no longer needed. I'd hope that HMRC had already sorted that out but if your partner hasn't talked to them at all then they presumably won't know to adjust their calculation.

If HMRC doesn't know your partner is no longer self employed he may also be being taxed too much in his new job.

If he usually does a tax return and hasn't yet for the 19-20 tax year then it might be worth doing that now rather than putting it off until January.


Return to “Income Tax”