500T-1 Tax Code

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Discussion

speed_monkey

Original Poster:

3,503 posts

169 months

Wednesday 31st July 2013
quotequote all
Hi All,

I have just recieved my second pay slip from work and it has the tax code "500T-1" on it..... I have no idea what this means and I do think it is incorrect.

Is anyone able to shed some light on this please as the HMRC website leaves a lot to be desired!

TIA

Ian

Eric Mc

117,921 posts

245 months

Wednesday 31st July 2013
quotequote all
Have you received a detailed Notice of Coding from HMRC?

Is your employer applying a tax code based on a Coding Notice THEY have received from HMRC?

Are you a higher rate taxpayer?

Do you receive any substantial Benefits in Kind in your current employment?

Have you more than one employment?

Did you change jobs since 5 April 2013?

What was your previous tax code?

speed_monkey

Original Poster:

3,503 posts

169 months

Wednesday 31st July 2013
quotequote all
Eric Mc said:
Have you received a detailed Notice of Coding from HMRC?

Is your employer applying a tax code based on a Coding Notice THEY have received from HMRC?

Are you a higher rate taxpayer?

Don you receive any substantial Benefit in Kind in your current employment?

Have you more than one employment?

Did you change jobs since 5 April 2013?

What was your previous tax code?
My employer on my first pay applied a 0T-1 as I did not have my P45, since then I have given them my P45 and now have the 500T-1 tax code.

No, sub £25k over £18k

No basic salary only

Yes, I left my job middle of June started new employment 17th June 2013

Previous tax code on my P60 is/ was 810L

Thank you

Eric Mc

117,921 posts

245 months

Wednesday 31st July 2013
quotequote all
What was the tax code on the P45 given to you by your previous employer?

speed_monkey

Original Poster:

3,503 posts

169 months

Wednesday 31st July 2013
quotequote all
Eric Mc said:
What was the tax code on the P45 given to you by your previous employer?
944L

sumo69

2,164 posts

200 months

Thursday 1st August 2013
quotequote all
Then unless you have a new code, that's what your new employer should be using.

Phone call to HR needed!

David

Eric Mc

117,921 posts

245 months

Thursday 1st August 2013
quotequote all
944L is the "normal" code for a person who has no complications to their tax affairs - such as having benefits in kind, clawback of old tax arrears, adjustment for restrictions to allowances or benefits etc.
It equates to the standard personal tax allowances for 2013/15 pf £9,440.

If the wages you are receiving under your new employment are not substantially different to what you had before and you do not have any Benefits in Kind, there is no reason why you should still not be on a 944L code.

speed_monkey

Original Poster:

3,503 posts

169 months

Thursday 1st August 2013
quotequote all
Eric Mc said:
944L is the "normal" code for a person who has no complications to their tax affairs - such as having benefits in kind, clawback of old tax arrears, adjustment for restrictions to allowances or benefits etc.
It equates to the standard personal tax allowances for 2013/15 pf £9,440.

If the wages you are receiving under your new employment are not substantially different to what you had before and you do not have any Benefits in Kind, there is no reason why you should still not be on a 944L code.
Would a 2k salary increase have such an impact?

Eric Mc

117,921 posts

245 months

Thursday 1st August 2013
quotequote all
No - not at the salary level you are currently at.

sumo69

2,164 posts

200 months

Thursday 1st August 2013
quotequote all
Salary will not impact on a tax code unless over £100k when the personal allowance starts to be withdrawn.

David

v15ben

15,482 posts

221 months

Monday 19th January 2015
quotequote all
A bit of a bump, but I'm just looking over my payslip from last month.
My income is 22,000 per annum, but my tax code is 500T.
After some research, it looks like this might be incorrect.
I completed my PGCE course in June and started working in July 14 at my current role.
My last UK full-time job was in 2010 as I worked abroad from August 10-August 13, so this is my first UK job since July 2010.

Is 500T possibly an incorrect code for me?
Worth a chat with HR tomorrow?

Eric Mc

117,921 posts

245 months

Monday 19th January 2015
quotequote all
Definitely.

IO don't suppose you complete Self Assessment tax returns?

v15ben

15,482 posts

221 months

Tuesday 20th January 2015
quotequote all
Nope, have never done self assessment tax.
Will have a word with the HR guys today.

Eric Mc

117,921 posts

245 months

Tuesday 20th January 2015
quotequote all
This year, I have to admit that some of the trickiest Self Assessment tax returns I've had to deal with were those where the individuals were mainly taxed under PAYE.

HMRC have also issued a statement this week saying that they are having problems reconciling tax codes for individuals who have more than one source of PAYE taxed income.

I would suggest that a lot more people should voluntarilly register for Self Assessment so that they can check - and correct - the mess HMRC seem to make of PAYE.

schmunk

4,399 posts

105 months

Tuesday 20th January 2015
quotequote all
v15ben said:
Nope, have never done self assessment tax.
Will have a word with the HR guys today.
HR are likely to be of little use - payroll has to apply the PAYE code advised by HMRC, doesn't know why it is as it is, and cannot unilaterally change it.

I'd suggest calling HMRC on 0300 200 3300 to discuss your PAYE code for 2014/15 and you'll need to look out for your P800 tax calculation later this year.

Id you remain on that PAYE code for the full year and it's your only source of income, you'll have overpaid about £600-700 for the tax year.

Edited by schmunk on Tuesday 20th January 08:37

Eric Mc

117,921 posts

245 months

Tuesday 20th January 2015
quotequote all
Has the OP received a detailed Notice of Coding showing how HMRC has arrived at this code?

If he has, has he read it?

If he has read it, has he understood it?

If he understood it, was it correct or incorrect?

If it isn't correct, has he contacted HMRC using the phone number they give on the code for precisely that purpose.

v15ben

15,482 posts

221 months

Tuesday 20th January 2015
quotequote all
Thanks for the feedback guys.
HR gave the same advice so I'm going to call HMRC this afternoon.

v15ben

15,482 posts

221 months

Tuesday 20th January 2015
quotequote all
Spoke to HMRC and they've sent an updated 1000L tax code to my employer.
Might be time for a bit of a refund I hope.
Thanks for the helpful advice!

sumo69

2,164 posts

200 months

Wednesday 21st January 2015
quotequote all
v15ben said:
Spoke to HMRC and they've sent an updated 1000L tax code to my employer.
Might be time for a bit of a refund I hope.
Thanks for the helpful advice!
You need to check that the code has been issued on a cumulative and not a Month 1 basis, otherwise you will not get your allowances for earlier months - check that code is "1000L" and not "1000L M1".

Your copy of the code will say 1000L, but not mention whether its on a M1 basis!

David