Tax Code change, whats OT?

[andy-xr]

For the last few years I had a tax code that was 3 numbers and a letter, I think it was 737L? I just got a letter through from HMRC (dated mid Feb) that says my tax code is now OT

I was made redundant last year and started a new job. Somewhere along the way I lost my P45, but completed a P46 form. Is this related does anyone know, or are we all being changed somewhere along the line?

[sensa]

andy-xr said:

For the last few years I had a tax code that was 3 numbers and a letter, I think it was 737L? I just got a letter through from HMRC (dated mid Feb) that says my tax code is now OT

I was made redundant last year and started a new job. Somewhere along the way I lost my P45, but completed a P46 form. Is this related does anyone know, or are we all being changed somewhere along the line?

http://www.ir35calc.co.uk/uk_tax_codes_guide.aspx said:

Tax Code OT

Indicates that you have no personal allowances and all income is subject to basic and higher rates of tax.

Hope that helps. Can't answer any of the other questions I'm afraid!

[Eric Mc]

You will need to find out why HMRC has decided you should have no tax alloweances at all for offset against your employment.

Have you got a second source of income with is taxed under the PAYE system - such as a second employment or a pension?

HMRC do not get coding right on many occasions and it is always worthwile checking as to what they are trying to do.

[Eric Mc]

I assume this coding is for tax year 2012/13?

[andy-xr]

It is, 12/13 notification

Still not sure why somethings changed, on hold to HMRC now to see if I can find out. Thanks for the help!

[Eric Mc]

I am sure you will only have one employer for tax year 2012/13. Therefore, your full tax free allowance of 8,105 should be allocated to your employment. On that basisi the tax code for 2012/13 should really be 810L, not 0T.

I presume you

a) aren't a Higher Rate Taxpayer

b) your salary doesn't exceed 150,000 per annum

c) you don't have any significant Benefits in Kind

[andy-xr]

OK, seems HMRC made an error on one count (assumption of benefits) and underpayment of tax back in 2008-09 has left me owing. There was something about a section 336 as well, but I'm going to call the 3rd party payment company who dealt with everything at that time and see if they have any records or could write to HMRC for me

Thanks for the help!

[Eric Mc]

Section 336 relates to payments by an employer in respect of expenses. Were there any such payments in tax year 2011/12 and will there be any such payments in tax year 2012/13?

If there have been such payments, were they in respect of "Expenses Incurred Wholly, Exclusively and Necesarilly as part of your employment"?

Is HMRC's assertion that tax was underpaid in 2008/09 correct and if so, can you confirm that amount they have calculated as being undepaid in 2008/09 is actually correct?

Did you have a problem with tax codings in earlier years?

[stongle]

Evidently, you'll be a 0T if you earn > £116k (taxable declared pay) per year. Or did do in the prior Tax Year. Every £2 over 100k is a £1 reduction in Tax free allowance. It's a lovely bumming that oft goes unreported.

Edited by stongle on Tuesday 20th March 17:22

[andy-xr]

No suck luck!!

I have to send them some P11D's and a couple of Section 336's - they'd factored in some healthcare benefits which was fair enough