Tax code

[CAH706]

I know I should know but I don't


My tax code has changed from k299 to 29L. I am a 40% tax payer....what difference per month will this make.

Cheers

[Eric Mc]

Do you know why it has changed?

Do you know if the adjusted code is correct?

[sumo69]

Around £1312 per annum so £109 per month.

The first month it is applied may be much higher if it is a cumulative code.

D

[CAH706]

Thanks both.

Not really sure why it's changed...tried ringing HMRC today but had to give up after 45 minutes on hold.

I was paying back an underpayment of 650 from last year....no idea why I had this either and assumed it would be taken over the year?

The change in take code letter which I've just received said code applicable from April so not sure if I will get money back or whether the change will just be from September?

[Eric Mc]

If HMRC are trying to collect arrears of £650 from an earler tax year - and they should have written to you at some point explaining EXACTLY how and why you underpaid tax in that year - they would need to DECRESE your personal allowances for 2012/13 by around £1,600.

So, instead of having a tax allowance of £8,105, it should be reduced to around.£6,500

In other words, the tax code would reduce from 810L to 650L

There may be other factors at work in causing your tax code to be reduced even further.

[LC23]

You've gone from a K code to a L code which means they have actually removed some taxable amounts (ie increased the amount of tax free income you are receiving).