Hi there
I changed jobs in May, finishing one job on 1st May and starting new job on 5th May. At the end of May I received the 1 day's pay plus holiday pay from my previous employer, and my first (nearly) month's pay from my new employer. Both employers paid me using tax code 1250L.
From June, HMRC put me on code 1119L for the rest of the tax year, to adjust for what HMRC estimates will be a £206 underpayment.
My new employer had not received my P45 and says it is now too late to process - but notwithstanding, HMRCs issue seems to be that you cannot have two employers paying you against the same tax code. I am not clear why 2 months into the tax year HMRC have adjusted when on a salary of c. £25k I am nowhere near reaching my tax-free limit.
I would be grateful if someone could explain. Have HMRC simply taken the May total earnings and assumed that to be my new monthly income for the rest of the year? (I wish, ha!) Why would they adjust so early in the tax year instead of waiting until the end and then making any adjustments?
Do I actually owe additional tax in the first place?
Yours, confused.
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