September Tax Rebates (ex-10% band) - Higher Rate

Will someone please tell me I'm not going mad.

I received my payslip today and my monthly tax has gone down by 140. Upon querying with Personnel they confirm this is because of the adjustments from September for the '10% tax-band loss compensation' from the Chancellor.

However, I'm a higher-rate tax payer and should receive 0 anyway as the thresholds were also adjusted for the tax bands as well as the tax free allowance.

Also, the rebate should of been 60 and then 10 per month, totalling 120.

After 'arguing' they still insist they are right and everyone gets the rebate!

Something is wrong? It will all come out in the wash anyway when my tax return is submitted as I will just owe the tax...

Regards, Justin.

Reply to
Justin Cole
Loading thread data ...

Yes. Your tax code should have gone up by 60 since last month. In addition the HRT band should have been adjusted so that HRT is due on annual income after allowances of 34800 instead of 36000.

They are wrong. You are right.

Has anything else changed? Is your income the same every month?

Reply to
Andy Pandy

In message of Wed, 1 Oct 2008, Andy Pandy writes

Perhaps your Coding has changed at the same time, for a different reason, some other adjustment, BIK perhaps or a previous year's underpayment adjusted.

Unless the employer's software is wrong (unlikely) then in your situation there should be a 'nil' effect, so something else has changed.

DF

Reply to
David Floyd

I thank you...

Nope. My pay isn't always the same but it was the same as last month so it makes the comparison far easier and obvious...

It looks like now they are 're-confirming' their position after I persisted... I predict an embarrassing company-wide mail will be sent in the next day or two admitting some people have been 'undertaxed' and expect their pay-packet next month to be without 'windfall'...!

Cheers, Justin.

Reply to
Justin Cole

As mentioned in the same thread in uk.business.payroll, I suspect the payroll s/ware hasn't been updated - hence the embedded bands are wrong, but the codes have been updated.

The OP now reports that his employer is backing off somewhat...!

Reply to
Martin

Yup, I suspect they've missed the band updates...

And I hope they like the taste of humble pie! But never upset Personnel ;-)

Justin.

Reply to
Justin Cole

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.