100% deduction from pay
I'm not an accountant, so I'd welcome your collective thoughts on this:
My daughter works for a well known multi-national high street clothes retailer as a overnight shelf filler. In the 11-12 tax year she earned just £5500, and with a tax code of 747L, she paid no tax on her fortnightly pay - until the last pay period of the tax year where her employers changed her tax code to BR - creating a tax liability of £1100. Her pay was just £150, so it was all consumed by the tax owing.
In the new tax year they continued with BR, but also carried forward the £950 she still "owed" - so every pay since then has suffered a 100% deduction. They have told her that this will continue until the debt is repayed.
She contacted the tax office, who were semi-helpful in that they told her that they had not issed a BR code, and that the code for this year is 810L. However, they can't do anything else until they receive the P60. They did also say that if they had changed the code, they would spread tax owing over the subsequent year, not deduct it all at the start.
The employers insist that they are operating the payroll correctly, and that it is a HMRC error that they can do nothing about.
My daughter faces a total of 6 or 7 pay periods with 100% deductions, and so is having to borrow money to pay bills etc.
Has anyone come across anthing like this?
Is there any way the employers are correct?
Any suggestions of how to progress this?
- Is there difference between when you state you will provide a specific provison and you will make a specific provision of £3200 against a partcular debt? 123 6
- When will Private Principal Residence Relief cut will start? 545 11
- Can rental income ever be trading income? 240 3
- Benefit In Kind Accommodation 83 1
- Tax Return Deadlines 158 3
- Foreign income for self employed 100 1
- tax credits 52 4
- accruals and prepayments please help anyone out there....accountants need to help other accountants out :) 438 18
- Error in 11-12 return done by previous accountant, do we have to offer them to correct or can I do and client reclaim cost 51 1
- Whats the best way to keep my accounts? 594 18
- Sage help...written off bad debt, done year end now bad payer wants to start to pay 39 2
- Who owns SAGE Data? 481 10
- Sage 50 Customer Statements and Running Balances 193 1
- EC VAT 222 10
- Land Opt to Tax - VAT scope 213 7
- Musician deductible expenses 88 1
- Invoice or journal for inter-company transactions 97 1
- How do I clear transaction history - Sage 50 v9 280 8
- Flat rate vat error 341 7
- Dividend paid to non-shareholder 543 13
- Desperately seeking Susan, Sam or anyone with any other name 849
- Experience with Islamic investor following Sharia-compliant rules? 510
- Darwinpay Partnership Assessment 323
- How to format a stock book 295
- Tax efficient holding company structure 235
- S464A Charge to tax: conferring benefit & BIK 231
- Investment property company accounts template 221
- Outlook 2007 with business contact manager not loading on new laptop 215
- auto enrolment - calculation of first pension deduction 182
- RTI and Annual Directors Salary 151