Any help on the following would be much appreciated.
My husband started a new job in August '10 and he gave his P45 to the payroll person but it was his P45 from the previous tax year 09/10 as he was self employed inbetween. So the amount on the P45 had already been declared on his self assesment for 2009/10. It means his income for the year on his P60 for tax year 10/11 includes figure of previous earnings for 09/10 which doesn't make sense to me because it increases his actual earnings for the year.
Was this the correct procedure and if not what can we do about it to correct it.
Oh no! P45 details should never be applied from a previous year. The code could be applied on a wk1/mth1 basis but then the Part3 handed over to the HMRC to sort out. They would have then got back to your husband's employer with the correct code for the 10/11 year together with any previous pay & tax. details. In fact, HMRC should have done that anyway if the P45 was submitted to them by the employer. I suspect your only course of action is to take it up directly with the Revenue. Are you sure the prev earnings aren't other taxable income for 10/11?
For the purpose of your husbands 2011 Self Assessment. As advised above, I would ensure that this is what has happened by pointing this out to the employer payroll office.
If, and only if, this error has happened (employer has used previous year figures), then he would be correct in deducting those previous year amounts from his P.60. He would then enter the result on the Employee supplement as usual.
I would also show what you have done in the 'white space' of the Self Assessment'. If the employer has corrected this with HMRC, then there should be no resulting enquiry.
On the P60 the figures have been seperated into previous employment(figure from 09/10) and in this employment. So I know that on his tax return he just needs to fill in figure from 'this employment'. The thing that concerns me is that because the figure from 09/10 tax year as been incorrectly included on the P60 the total for the year is affected which has an impact on our tax credit claim so I guess it still needs amending with the HMRC.
Yes, the wages office really needs to sort this out directly with HMRC. If you still have Part 1a of the P45, then I would photocopy this and send/hand it in so they can be certain of what needs amending.
