Tax Code Question

[okgo]

Hi all,

I was on a normal 647L code all of last year, I've just got my latest payslip and its changed to a 422L meaning I obviously have a lower tax free amount, and thus get more taken off me...

Any reason for this? As payroll can't explain it and I can't get through to HMRC right now, thought somone here may know why...

[Soovy]

okgo said:

Hi all,

I was on a normal 647L code all of last year, I've just got my latest payslip and its changed to a 422L meaning I obviously have a lower tax free amount, and thus get more taken off me...

Any reason for this? As payroll can't explain it and I can't get through to HMRC right now, thought somone here may know why...

I assume you're on a decent wedge. They've taken your personal allowance off you.

We now pay 60% on everything between 100,001 and 112,999.


Cute eh.

s.

[okgo]

Its alright but its not that decent

Must be something else as its not a 6 figure salary we're talking about.

[jagracer]

Did you not get a notification from HMRC a month or so ago that explains what they intend deducting? The normal code has gone up to around 760 so you are around £3K down with your one.

[okgo]

I got nothing, I am in a new job but its been right from month one, just now its just changed

[Deva Link]

okgo said:

I got nothing, I am in a new job but its been right from month one, just now its just changed

Do you have some benefit in your new job that you didn't have in the last one - maybe private health care?

[okgo]

No.

I had the same job for the last 3 months and it has been 647L its now switched to the 422L.

The only thin I have done that wouldn't or shouldn't affect it are I've sold a weeks holidays, and taken out the cycle to work scheme. And the decutions are plain to see.

[Devilstreak]

647l should have changed to 747l unless you have any benefits?
I'd ask your payroll department, you could have been given someone else's code by an entry error?

[jagracer]

Could it be a repayment of underpaid tax from last year?

[Deva Link]

Well, as someone said earlier, you should have had a notice of coding (or possibly several, as they seem to delight in doing).

I guess if your payroll people don't know, then no-one here is going to be any more informed. You'll just have to get hold of HMRC. It doesn't make an awful lot of difference (£70/mth or so if you're a 40% tax payer) and it'll sort itself out eventually anyway.

[okgo]

They think i have a company car according to the letter I got in the post today. That accounts for £2381. I don't have a company car.

And it also says I owe £170 from last year, and they take another £870 off for that? How the fk does that work?

[cuprabob]

okgo said:

And it also says I owe £170 from last year, and they take another £870 off for that? How the fk does that work?

Because basic rate tax is 20% therefore to recover £170 they need to reduce your tax code by 5 times as much

Edited by cuprabob on Wednesday 13th April 19:54

[Legacywr]

O/T, I have a K tax code.

[okgo]

cuprabob said:

Because basic rate tax is 20$ therefore to recover £170 they need to reduce your tax code by 5 times as much

I see.

Do you know how quick they will ammend things when I tell them I don't have a company car?

[cuprabob]

In my experience they can never fix anything quickly and when they do it can take them many attepts to get it correct.

[jagracer]

okgo said:

I see.

Do you know how quick they will ammend things when I tell them I don't have a company car?

They should do, I was issued with a K code earlier this year as my company told them I was working for two of their subsidiaries and getting two incomes, one phone call sorted it out.

[ClassicMercs]

cuprabob said:

In my experience they can never fix anything quickly and when they do it can take them many attepts to get it correct.

+1 - Good Luck and be patient, sadly.

[Eric Mc]

These days they are usually quite quick in changing if you speak to them over the phone.

I wonder why they think you have a company car when you haven't fot one?

[okgo]

I've had them in the past, but not for the last 2 years.

It does seem odd. I will try to call them this lunchtime if I can get through.

I've been told that they have got lots of things wrong this year...

[Eric Mc]

The implememtation of the new PAYE software they are using has had a number of glitches. One I have heard of is the fact that the system seems to be resurrecting facts about previous jobs that are not relevant to your current job. That sounds like what might have happened here.

Another glitch is that the system is "forgetting" that you may have left a previous job (they should know you have left a job when the old employer files the P45 with them). If the fact that an old job has ceased is forgotten by their system, they then issue a reduced coding for your current PROPER job as the system assumes that your full coding is being used up by your other (totally ficticious) job.

Watch those coding folks, they can be wrong on so many levels.