View Full Version : Tax Code Comedy
454697819
26-01-10, 09:14 AM
I have received my new tax code for this year, its apparently K347 not L302 which it was last year, they also list that I owe them some tax, shocked and concerned I read the rest of the letter to discover that the reason for this calculation is because and i quote
"we estimate your total annual income will exceed £112 950 for this tax year" :smt119
ha ha ha I fooking wish
I have called them and politely mentioned they have it a little wrong :-)
ThEGr33k
26-01-10, 09:24 AM
lol. So when you buying me a few bikes then rich boy :D
I saw something on the news yesterday saying that they had published some wrong tax codes and people should keep a eye out.
the_lone_wolf
26-01-10, 09:30 AM
I saw something on the news yesterday saying that they had published some wrong tax codes and people should keep a eye out.
http://news.bbc.co.uk/1/hi/business/8478271.stm
Amazingly it was a government computer project that caused it
Now all we need is for your income details to be left on a London bus and the stereotype will be complete...
dont talk to me about tax/codes/rebates and the like
i first notified IR i'd overpaid in October 2008. Resent P60's and P11d's 3 times now. First time they lost them second time they sent letter back saying i owe THEM a grand. they've delayed looking into it as they had a computer change or system change middle of last year, then they write to me end of last year saying we've looked into it and we're quits, you overpaid and we've made up the balance in code changes. no sorry you haven't, i overpaid on my company car tax 3 years running due to an "admin" error, co2 emmissions were stated incorrectly.
quick to take it from me, not so quick to give it back it seems.
keep a close eye on them, they are by no means infalible!
454697819
26-01-10, 09:39 AM
dont talk to me about tax/codes/rebates and the like
i first notified IR i'd overpaid in October 2008. Resent P60's and P11d's 3 times now. First time they lost them second time they sent letter back saying i owe THEM a grand. they've delayed looking into it as they had a computer change or system change middle of last year, then they write to me end of last year saying we've looked into it and we're quits, you overpaid and we've made up the balance in code changes. no sorry you haven't, i overpaid on my company car tax 3 years running due to an "admin" error, co2 emmissions were stated incorrectly.
quick to take it from me, not so quick to give it back it seems.
keep a close eye on them, they are by no means infalible!
exactly the reason I called them, it would be sorted out when the p40 went in but that is a month away or so yet and it wouldn't be sorted.
ThEGr33k
26-01-10, 09:45 AM
I think they owe my brother a grand!!!
Dave20046
26-01-10, 09:46 AM
How do you know if you're on a correct tax code? My tax code always seems to be changing and I'm sure I must have been on emergency tax a few years ago.
My neighbour discovered she was owed 13k in tax refunds the other month! Feel like it's something I should be keeping an eye on.
How do you know if you're on a correct tax code? My tax code always seems to be changing and I'm sure I must have been on emergency tax a few years ago.
My neighbour discovered she was owed 13k in tax refunds the other month! Feel like it's something I should be keeping an eye on.
this is how i see it...this wont be explained very well...
your personal allowance is 6475, which means you can earn 6475 quids worth of pounds before you get taxed. this will be shown as a tax code on your payslip as 647L
i have a company car which (IIRC) costs me about 4000 a year. this comes off of my allowance making my pretax allowance 2475 so my code would therefore be 247L (i wish but healthcare and other "perks" see to that)
check online as to how much any perks your have at work "cost" you in allowance, if your code is anything different speak to IR.
454697819
26-01-10, 10:08 AM
How do you know if you're on a correct tax code? My tax code always seems to be changing and I'm sure I must have been on emergency tax a few years ago.
My neighbour discovered she was owed 13k in tax refunds the other month! Feel like it's something I should be keeping an eye on.
listen to tax man is a good website,
the tax free amount for those under 40k a year but over 12k is 6450 a year or there abouts might be 6495 this translates to a normal tax code of 645L tax codes can have deductions or additions depending on previous paid tax amounts. Do some research then call the IRC.
Dave20046
26-01-10, 10:17 AM
Cheers both of you, will look at my p45
I've had 3 tax codes in the same week, two of which arrived on the same day.
always check your codings.
653L
I got £60 put onto my tax free amount, due to flat rate job expenses??
Anyone any idea what this is?
timwilky
26-01-10, 11:08 AM
Generally I think the revenue try hard to get it right. Of course mistakes happen, I can honestly say that despite my moans that I pay far too much tax (Government policy) they do tend to take the right amount.
However, twice I have had nice £1000+ cheques sent to me out the blue when they realise they have not quite got it right. such as taxing me for two cars when I had actually changed cars etc.
653L
I got £60 put onto my tax free amount, due to flat rate job expenses??
Anyone any idea what this is?
approach with caution!!!
not certain what it is, you may have overpaid slightly in previous months/years.
my suggestion would be - don't spend it!!
I was getting taxed last year some months, when I was still within my threshold.
Think I should phone and ask?
454697819
26-01-10, 11:37 AM
I was getting taxed last year some months, when I was still within my threshold.
Think I should phone and ask?
no, its pay as you earn PAYE, which means if you are forecast to go over your tax free amount you will be taxed the amount of tax over the 12 months period.
you can always call and ask.
I've had 3 tax codes in the same week, two of which arrived on the same day.
always check your codings.
seeing it on the employer's side, the notifications for our employees come via a gateway system on the internet I log in and download the new tax codes.
Employees can recieve different notification to the employer, and whilst we can't use the notifications you receive, if you get a few within a couple of weeks call your HR/Payroll department to see what they have received if any! and also which was the last code they received so the one they will use!
Sally there is a number you can call where you don't have to give any personal details and just ask the question. So it doesn't pull up your record....
will try find number
Sir Trev
26-01-10, 12:10 PM
Folks - as a bean counter I can simplify this a bit.
Take a piece of paper (or spreadsheet) and on the left hand side list your income. This will be your annual pay (look on your pay slip, may be called "base" or "reference" pay) plus any additional income or "benefits in kind". BIK is not smutty by the way - it includes company cars, health insurance, or anything else you get as a perk you would otherwise have had to pay for. Add to this side any underpayments the Revenue may have notified you of from previous years*. Add also any additional bonus or commission payments you may get over the year as these all count.
On the right hand side list your allowances and deductions. Everyone gets a personal allowance as already mentioned by a few posters, but you may get others. Include on this side any OVERpayments you have made in previous years*.
The total of the left hand side, minus the total of the right hand side, equals your TAXABLE PAY - the amount you actually pay tax on. It is this that forms the basis of your tax code.
All this should be on your coding notification. CHECK IT CAREFULLY. If anything is wrong or missing get in touch with your tax office straight away. By the way, if HMRC use estimates for any reason it can take years for the under/over recovery to stop. When our company cars were taken back and we got allowances instead it took three years for the "adjustments" to stop on my code.
*both under and over payments have to be agreed by HMRC in advance for them to be used them in your code computation.
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