Tax code query
Discussion
Help please?
Anyone understand tax codes?
My daughter works as car sales person for mini, so she gets paid a basic, then commission and bonuses etc.
In addition she also gets a company car, which is changed every month, insurance is paid for and she gets a fuel card and allowance of 100 litres of fuel a month.
Looking at her last 3 pay slips she seems to be paying more tax than I would expect.
Her tax code in sept was OT M1 this has changed to K3 M1 for oct and nov.
I have no idea what these mean? Anyone through any light on it?
More to the point I am not sure how she queries it, does she take it up with her payroll dept. Or does she need to contact the Inland Revenue?
Anyone understand tax codes?
My daughter works as car sales person for mini, so she gets paid a basic, then commission and bonuses etc.
In addition she also gets a company car, which is changed every month, insurance is paid for and she gets a fuel card and allowance of 100 litres of fuel a month.
Looking at her last 3 pay slips she seems to be paying more tax than I would expect.
Her tax code in sept was OT M1 this has changed to K3 M1 for oct and nov.
I have no idea what these mean? Anyone through any light on it?
More to the point I am not sure how she queries it, does she take it up with her payroll dept. Or does she need to contact the Inland Revenue?
M1 indicates its an emergency tax code and should only be applied to the current month. K indicates that the company benefits exceed the tax free allowance so additional tax is due. The 3 indicates that the amount the company benefits exceed the tax free allowance. You multiply this number by 10 so the benefits exceed the tax free allowance by £30. IIRC OT is that all income should be taxed for that month (no tax free allowance).
Edited by plasticpig on Thursday 14th December 17:52
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