Tax Code Question

[darrent]

The Mrs has just started a new job, her first since the start of the new tax year. She has been given a tax code of "503L M1" - what the hell is the M1 all about?? I've never seen that before???

[Eric Mc]

"Month 1 Basis".

Should not make a huge difference (if any) to your regular monthly take home pay but I would contact the tax office (number should be on the Notice of Coding) to ask why they think a Month 1 Basis is appropriate.

Did she have to complete a P46 for her new employer when she joined?

The standard code for most individuals for the 2006/07 tax year is 503L (i.e a personal tax free allowance of £5,035).

>> Edited by Eric Mc on Friday 26th May 15:54

[darrent]

Cheers Eric, yep she could not find her P60 so she filled one out but she has not been employed since early March.

[Eric Mc]

It'll probably be sorted once

a) her employer submits the P46 to the Revenue and

b) the Revenue processes the P46

If it has not been changed after a few months, chase up both the employer and the Revenue.

[Smartie]

If she worked for the co over the tax year end (ie 05/04/06) then the M1 flag should have been dropped from the first pay period in the new year - chase your payroll dept.!

[petclub]

I think these M codes are what we used to call emergency tax, but I'm not sure.