Change of tax code not received by employer before payroll cut off

[Satsuma]

Sometime in the last 10 calendar days, my tax code was changed by HMRC to account for personal pension relief, which has hopefully sorted a long standing issue (phew!).
However it’s payday for me tomorrow, so any formal notification from them to my employer will have missed the cutoff for payroll changes this month.

I am not even sure if there are any negative financial/tax implications…But logically I think it means that my salary/pension payments this month were calculated under the old incorrect tax code, which means the proper relief was not given/applied? So, does that get somehow rolled over into next month (or maybe end of tax year?) and automatically fixed or do I need to do anything? It’s not going to be a fortune, but every penny counts.

(Apologies if this is a bit garbled but just getting this far has almost done for me in terms of having to sort it out – I eventually discovered that my employer had sent incorrect information to HMRC and until I brute-forced them to step-by-step review what they had done, they were trying to wash their hands of it!)

MTIA
Sats

[PinkDalek]

...

I am not even sure if there are any negative financial/tax implications…But logically I think it means that my salary/pension payments this month were calculated under the old incorrect tax code, which means the proper relief was not given/applied? So, does that get somehow rolled over into next month (or maybe end of tax year?) and automatically fixed or do I need to do anything? It’s not going to be a fortune, but every penny counts.

...

Yes, once the revised code is received and processed by your employer, it will take effect as if it had been in place since the beginning of the tax year. Your November payslip should therefore reflect the additional relief for that month, as well as the relief for the months past.

[DrBunsenHoneydew]

...

I am not even sure if there are any negative financial/tax implications…But logically I think it means that my salary/pension payments this month were calculated under the old incorrect tax code, which means the proper relief was not given/applied? So, does that get somehow rolled over into next month (or maybe end of tax year?) and automatically fixed or do I need to do anything? It’s not going to be a fortune, but every penny counts.

...

Yes, once the revised code is received and processed by your employer, it will take effect as if it had been in place since the beginning of the tax year. Your November payslip should therefore reflect the additional relief for that month, as well as the relief for the months past.

If it was an M1 code it might not rectify properly though. So hopefully the code does not have that suffix.

[Satsuma]

Yes, once the revised code is received and processed by your employer, it will take effect as if it had been in place since the beginning of the tax year. Your November payslip should therefore reflect the additional relief for that month, as well as the relief for the months past.

Phew again. That's a relief to know, thanks PD!

If it was an M1 code it might not rectify properly though. So hopefully the code does not have that suffix.

It does not but thank you for checking DrBunsenHoneydew!

This has been rumbling on since January, so I am so glad to see the back of it at long last!
Sats

[chas49]

Yes, once the revised code is received and processed by your employer, it will take effect as if it had been in place since the beginning of the tax year. Your November payslip should therefore reflect the additional relief for that month, as well as the relief for the months past.

....

This has been rumbling on since January, so I am so glad to see the back of it at long last!
Sats

If you have been incorrectly taxed since January, the new tax code won't solve all of it. It will only deal with the current tax year (April 17-Mar18) so you may need to reclaim the overpaid tax for Jan 17 - Mar 17 separately - that won't come from your employer

[Satsuma]

If you have been incorrectly taxed since January, the new tax code won't solve all of it. It will only deal with the current tax year (April 17-Mar18) so you may need to reclaim the overpaid tax for Jan 17 - Mar 17 separately - that won't come from your employer

Thanks - I didn't mention before that my online tax account also confirmed the refund due for the 2016-17 tax year, which is already being processed as a BACS transfer back to me

(Actually, I started to type it out in my previous post, but as soon as you mention "claiming tax refunds online", kindly-meant people start getting very excited about scam emails and fake websites, so I decided against it )

Sats

[Satsuma]

Quick update: I am now a full calendar month/payroll/salary cycle on from this.
As of today, I am over £1800 better off thanks to this all being sorted out. I will be a bit better off every month going forward too!

I am so glad I pulled on the virtual string of "Huh, I wonder why these sums don't add up?" all those months ago now...

Huge thanks to all Lemons who took time to explain and advise on my issue.
Sats