Tax

[balbyrover]

Can anybody explain how tax works? Ive been working a few years now and got a tax rebate in Sept 15 when i started working at One Call.
Almost 2 years on andi have just started another job and been emergency taxed so rung HMRC who took some details and said theyve worked out im owed around 900 because ive earnt less than 11500?
Is it every single year that you get your first 11 grand tax free from april then pay tax after or?
I just dont particularly understand any of it at all.

[Syme]

In basic terms, everyone gets a tax-free allowance on their earnings up to £11,000.

So for every £1 you earn up to a maximum of £11,000, you pay zero tax - this is the personal allowance

After this you pay 20p for every £1 you earn, until you earn £43,000 - this is the basic rate

After this you pay 40p for every £1 you earn, until you earn £150,000 - this is the higher rate

After this you pay 45p for every £1 you earn- this is the additional rate

You usually get taxed based on a whole year projection. So if you were doing a job with a £20,000 salary, but only for 6 months, you'd still get taxed whilst you working at the basic rate. However, when you stopped after 6 months you'd only have made £10,000, so you'd be due a rebate. HMRC won't usually know about this until after the end of the tax year in April, and you may have to chase them for it.

National Insurance works in a different way

[balbyrover]

In basic terms, everyone gets a tax-free allowance on their earnings up to £11,000.

So for every £1 you earn up to a maximum of £11,000, you pay zero tax - this is the personal allowance

After this you pay 20p for every £1 you earn, until you earn £43,000 - this is the basic rate

After this you pay 40p for every £1 you earn, until you earn £150,000 - this is the higher rate

After this you pay 45p for every £1 you earn- this is the additional rate

You usually get taxed based on a whole year projection. So if you were doing a job with a £20,000 salary, but only for 6 months, you'd still get taxed whilst you working at the basic rate. However, when you stopped after 6 months you'd only have made £10,000, so you'd be due a rebate. HMRC won't usually know about this until after the end of the tax year in April, and you may have to chase them for it.

National Insurance works in a different way

Thanks for that. So for the 11000 allowance.
Does that restart every april?
Or is it just your first working year?

Sorry if i sound a bit thick

[Syme]

Everyone gets a new personal allowance every new tax year. It was £11,000 this year, and I think it is £11,500 for 2017/18, so if you earn less than £11,500 between April 6th 2017 and April 5th 2018 you won't pay any tax.

[Dagenham Rover]

However if say you earn 22k pa it's not a case that you don't pay any tax for the first 6 months they "average" it out over the 12months

[idler]

In March I cashed a pension pot in and they taxed me on all three rates so I'll be ringing them in May if I haven't heard from them.

[Jenny]

In March I cashed a pension pot in and they taxed me on all three rates so I'll be ringing them in May if I haven't heard from them.

Have you worked out how much you should have paid on it?

[idler]

Not yet Jenny.
They did break down the amounts.
I pay tax as I have received another works pension since 2003 and started the state pension in 2015.
I would have left this one until about now but thought that the government might decide to stop me taking the lump sum. It was a fair lump but would have been a small monthly payment from Aviva's forecast.
At 68 I'd rather have a choice on how I spend or invest it.

[GazLaz]

That need'nt be taxing.

[balbyrover]

That need'nt be taxing.

Eh?

[balbyrover]

Just been on the phone and had a bit of a barney with a advisor.  He told me now i am only owed 70 pound and the previous advisor who misadvised me might have been a trainee.
I got that wound up had to put phone down... im going to get a pen paper ajd call them back.
Is there anybody who can help me who has a bit of a knowledge on tax etc? Where do i stand?
Even if ive earned 14k then i will be due something back surely?

[balbyrover]

Called back. Spoke with a manager who says he is sorry i was told im due 1k back its only 84.40.
Asked him to escalate and awaiting a call back from hmrc complaints team.
Not lying down with this. Disgraceful

[Jenny]

What you've got to remember is when you call HMRC you basically get through to call centre monkeys who are poorly trained through no fault of their own due to cut backs etc

[Syme]

He's done well to get through

[balbyrover]

What you've got to remember is when you call HMRC you basically get through to call centre monkeys who are poorly trained through no fault of their own due to cut backs etc

I appriciate that but to completely misadvise me is wrong.  Im not at fault and do have all the calls recorded so.
Intriuged as to what there resoloution will be.
If they don't offer me a reasonable cash amount or some form of resoloution then ill be taking it further

[Dagenham Rover]

It might take them a few days to get back to you they took that when I had a problem with my Dad's estate, everything was paid etc etc in a timely manner  2 years later they tried to claim £200 was outstanding the advisor said tough as the executor you've got to pay, however it had been published in the paper anybody having a claim on the estate etc etc so there becomes a time limit when the supervisor rang back I won and it was all waived

[Syme]

What sort of resolution would you hope for balbyrover? If you're only owed 80 quid or so then that's probably all you'll get.

[Dagenham Rover]

What sort of resolution would you hope for balbyrover? If you're only owed 80 quid or so then that's probably all you'll get.

I would suggest thats right

[balbyrover]

What sort of resolution would you hope for balbyrover? If you're only owed 80 quid or so then that's probably all you'll get.

I would suggest thats right

But to be told im going to get significantly more is shocking and poor customer service.

[Syme]

Agreed it's a balls up, but it doesn't mean they should pay you above and beyond what you're owed unfortunately

[Jenny]

You are deluded if you think you'll get any kind of gesture of goodwill from HMRC. You'll get what you are owed and that is that.

[IDM]

They are usually fairly accurate, in the end..

[balbyrover]

You are deluded if you think you'll get any kind of gesture of goodwill from HMRC. You'll get what you are owed and that is that.

I don't think it is deluded. I expect that they probably will try fob me off with a apology. But its up to me whether i try push the matter further.
It has inconvenienced me massively and whilst i understand that i may only be owed £84.40 i still want to speak with somebody of authority.
I don't think it makes me deluded and i also don't think im being unreasonable.

[Sprotyrover]

Good luck 😂😂😂😂😂😂😂😝

[big fat yorkshire pudding]

You are deluded if you think you'll get any kind of gesture of goodwill from HMRC. You'll get what you are owed and that is that.

I don't think it is deluded. I expect that they probably will try fob me off with a apology. But its up to me whether i try push the matter further.
It has inconvenienced me massively and whilst i understand that i may only be owed £84.40 i still want to speak with somebody of authority.
I don't think it makes me deluded and i also don't think im being unreasonable.

There's nowhere you can go with it you're neither a customer or legally due anything.  The suggestion would be ask an expert to help next time.

[Jenny]

You are deluded if you think you'll get any kind of gesture of goodwill from HMRC. You'll get what you are owed and that is that.

I don't think it is deluded. I expect that they probably will try fob me off with a apology. But its up to me whether i try push the matter further.
It has inconvenienced me massively and whilst i understand that i may only be owed £84.40 i still want to speak with somebody of authority.
I don't think it makes me deluded and i also don't think im being unreasonable.

You clearly don't understand how HMRC work. They made an error and they've sorted it, prettty much like you had absolutely no clue how tax worked and now feel like your some kind of expert due an apology and an enhanced payment. You are wasting their time, and your time and energy.

Youll be better off spending your time educating yourself on the basics of how personal tax works, so that you don't have to rely on an untrained overworked call centre monkey giving you a bit of dud advice and leaving HMRC to spend their time collecting the millions of unpaid tax kicking around.

Edit - how has it inconvienced you massively? You paid a tiny bit more than you should which you'll get back? And that isn't even always the fault of HMRC, more on employers and previous employers not issuing documents quick enough.

[Syme]

Maybe he already spent the money he thought he was due? That would be inconvenient. And naive.

[rich1471]

I transfer part of my wife's tax free pay onto mine as she only earns 9k per year it works out I get around £244 extra per year you can claim for last year as well , got my dad to do it as my mum only gets a small pension and does not use her tax allowance , I do my own tax you can complain to the tax office but trust me it will get you know where just more frustrated

[balbyrover]

You are deluded if you think you'll get any kind of gesture of goodwill from HMRC. You'll get what you are owed and that is that.

I don't think it is deluded. I expect that they probably will try fob me off with a apology. But its up to me whether i try push the matter further.
It has inconvenienced me massively and whilst i understand that i may only be owed £84.40 i still want to speak with somebody of authority.
I don't think it makes me deluded and i also don't think im being unreasonable.

You clearly don't understand how HMRC work. They made an error and they've sorted it, prettty much like you had absolutely no clue how tax worked and now feel like your some kind of expert due an apology and an enhanced payment. You are wasting their time, and your time and energy.

Youll be better off spending your time educating yourself on the basics of how personal tax works, so that you don't have to rely on an untrained overworked call centre monkey giving you a bit of dud advice and leaving HMRC to spend their time collecting the millions of unpaid tax kicking around.

Edit - how has it inconvienced you massively? You paid a tiny bit more than you should which you'll get back? And that isn't even always the fault of HMRC, more on employers and previous employers not issuing documents quick enough.

Which is why i asked.  I had a basic understanding and haven't once said i am a expert.
It is basic customer service and i was misadvised which im not happy about. I have not asked for "enhanced payment."
I think your reply is quite snotty really.
Thanks for the decent posters though who've answered.

[Filo]

You are deluded if you think you'll get any kind of gesture of goodwill from HMRC. You'll get what you are owed and that is that.

I don't think it is deluded. I expect that they probably will try fob me off with a apology. But its up to me whether i try push the matter further.
It has inconvenienced me massively and whilst i understand that i may only be owed £84.40 i still want to speak with somebody of authority.
I don't think it makes me deluded and i also don't think im being unreasonable.

You clearly don't understand how HMRC work. They made an error and they've sorted it, prettty much like you had absolutely no clue how tax worked and now feel like your some kind of expert due an apology and an enhanced payment. You are wasting their time, and your time and energy.

Youll be better off spending your time educating yourself on the basics of how personal tax works, so that you don't have to rely on an untrained overworked call centre monkey giving you a bit of dud advice and leaving HMRC to spend their time collecting the millions of unpaid tax kicking around.

Edit - how has it inconvienced you massively? You paid a tiny bit more than you should which you'll get back? And that isn't even always the fault of HMRC, more on employers and previous employers not issuing documents quick enough.

Which is why i asked.  I had a basic understanding and haven't once said i am a expert.
It is basic customer service and i was misadvised which im not happy about. I have not asked for "enhanced payment."
I think your reply is quite snotty really.
Thanks for the decent posters though who've answered.

You are not a customer of HMRC, they have no Customers, they are basically a collection agency