Tax code changed

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Top 'o the morning folks :)

My tax code changed this month, I suspect this is due to me using Tommy's Tax (yes, I know, won't use again etc) who claimed a tax return on my behalf which now gives me a tax-free allowance. This was of course not explained to me and I just wanted the dorra so nodded like a good little puppy to get the money.

Anyway. Yesterday's payslip gave me tax rather than deduct it, I assume this is tied in with the tax-free allowance.

What can I expect from this? Is HMRC going to come and harvest my organs next time I get paid? Or will I revert back to me original tax code and that's that? I don't like unexpected expenses so rather be prepared and all that.

Cheers :)
 
Normally if you're eligible for a tax refund it means you're on the wrong code to start with so once they've calculated what you should have paid that generates a new code so that you're no longer paying too much.
 
Resident said:
Normally if you're eligible for a tax refund it means you're on the wrong code to start with so once they've calculated what you should have paid that generates a new code so that you're no longer paying too much.
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A lot of folk don't realise they are paying too much tax though, for example - if you work from home, or have to wash your company provided uniform. So the default 1257L code is upgraded to (in my instance) 1288L. It is usually backdated one year as well.

So the refund the OP received may have been for last year, and their tax code now will reflect the basic tax code (1257L) plus the additional tax free allowance.

My advice to anyone reading this is to not pay some intermediary to do this for you. It literally takes 15/20mins of effort and can get you a decent chunk of change refunded.

Work from home allowance was authorised for all of last year and all of this year, carte blanche. Even if you only had to do it for a little while/odd few days.
 
dLockers said:
A lot of folk don't realise they are paying too much tax though, for example - if you work from home, or have to wash your company provided uniform. So the default 1257L code is upgraded to (in my instance) 1288L. It is usually backdated one year as well.

So the refund the OP received may have been for last year, and their tax code now will reflect the basic tax code (1257L) plus the additional tax free allowance.

My advice to anyone reading this is to not pay some intermediary to do this for you. It literally takes 15/20mins of effort and can get you a decent chunk of change refunded.

Work from home allowance was authorised for all of last year and all of this year, carte blanche. Even if you only had to do it for a little while/odd few days.
Click to expand...

Did i hear the WFH allowance had also recently been increased?
 
dLockers said:
A lot of folk don't realise they are paying too much tax though, for example - if you work from home, or have to wash your company provided uniform. So the default 1257L code is upgraded to (in my instance) 1288L. It is usually backdated one year as well.

So the refund the OP received may have been for last year, and their tax code now will reflect the basic tax code (1257L) plus the additional tax free allowance.

My advice to anyone reading this is to not pay some intermediary to do this for you. It literally takes 15/20mins of effort and can get you a decent chunk of change refunded.

Work from home allowance was authorised for all of last year and all of this year, carte blanche. Even if you only had to do it for a little while/odd few days.
Click to expand...

I had totally forgotten about this allowance. Just submitted my claim, takes 2 minutes.

Cookie for @dLockers
 
Diddums said:
Top 'o the morning folks :)

My tax code changed this month, I suspect this is due to me using Tommy's Tax (yes, I know, won't use again etc) who claimed a tax return on my behalf which now gives me a tax-free allowance. This was of course not explained to me and I just wanted the dorra so nodded like a good little puppy to get the money.

Anyway. Yesterday's payslip gave me tax rather than deduct it, I assume this is tied in with the tax-free allowance.

What can I expect from this? Is HMRC going to come and harvest my organs next time I get paid? Or will I revert back to me original tax code and that's that? I don't like unexpected expenses so rather be prepared and all that.

Cheers :)
Click to expand...

From memory you're South African?

Are you claiming remittance basis, i.e. taxable on only UK income?

Or is it as suggested you've paid someone to claim a really easy employment expense like working from home (frankly, you could have just called HMRC about that and it would have cost nowt!)?
 
dLockers said:
A lot of folk don't realise they are paying too much tax though, for example - if you work from home, or have to wash your company provided uniform. So the default 1257L code is upgraded to (in my instance) 1288L. It is usually backdated one year as well.

So the refund the OP received may have been for last year, and their tax code now will reflect the basic tax code (1257L) plus the additional tax free allowance.

My advice to anyone reading this is to not pay some intermediary to do this for you. It literally takes 15/20mins of effort and can get you a decent chunk of change refunded.

Work from home allowance was authorised for all of last year and all of this year, carte blanche. Even if you only had to do it for a little while/odd few days.
Click to expand...

I doubt it's applicable if you worked from home anyway (not for yourself but employed)?
 
MrMagoo said:
I doubt it's applicable if you worked from home anyway (not for yourself but employed)?
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If you work from home anyway you have been entitled to it all along.

It isn't a new thing, it just got 'better' and more lenient during lockdown 1.
 
Diddums said:
1257L ---> 1758L

The answers in here make sense, that it gives me x amount of tax-free income as I do spend quite a bit on things like uniform and travel and whatnot. I'm just wondering now what the permanent consequences of this are and if I change jobs, will it change again automatically?
Click to expand...
You need to find out what Tommy has done. From your tax code it seems you have acquired an extra £5010 tax free allowance. That is huge - so it is either they've worked out your uniform allowance over like...50 years (it's normally like £100 a year) or they've done some creative maths on something else, and likely backdated it - resulting in you getting a refund through your tax code.

From April it should go back to 1257L or 1257L+whatever the on-going allowance should be.

Definitely enquire else you'll be getting a big bill to pay the difference back (if it is a mistake).
 
Diddums said:
1257L ---> 1758L

The answers in here make sense, that it gives me x amount of tax-free income as I do spend quite a bit on things like uniform and travel and whatnot. I'm just wondering now what the permanent consequences of this are and if I change jobs, will it change again automatically?
Click to expand...

It'd be interesting to see a breakdown of how £5k has been claimed on your behalf. You don't get tax relief on the cost of travelling to your usual place of work or if you've been reimbursed other travel costs. Similarly if you've been reimbursed for "whatnot" you can't claim tax relief on the expenditure.
 
Wow; I was not aware of this allowance at all; just claimed for previous 5 tax years.

Claiming flat rate is easy; just provide details for "Using your home as an office." at £312 for 2020-2021 / 2021-2022 (£208 for previous years).

Details here.

Cheers!
 
dLockers said:
You need to find out what Tommy has done. From your tax code it seems you have acquired an extra £5010 tax free allowance. That is huge - so it is either they've worked out your uniform allowance over like...50 years (it's normally like £100 a year) or they've done some creative maths on something else, and likely backdated it - resulting in you getting a refund through your tax code.

From April it should go back to 1257L or 1257L+whatever the on-going allowance should be.

Definitely enquire else you'll be getting a big bill to pay the difference back (if it is a mistake).
Click to expand...

I would have thought they'd only be able to backdate a claim for so many years anyway.

@Diddums have you had to purchase any tools for your job that you've been able to claim the VAT back on? Not sure if the rebate for that would be via cheque or a change in tax code.
 
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