Tax code query

[Guest2]

I have just been paid and my tax code is 778LM1

This is my only income and I pay into company pension and student loan

I have found this on another forum...


"why is your code 778l it should be 747l unless you have other income company car etc"

Anyone else have this code or know what it means?


Thanks

 

[Theophany]

http://www.ir35calc.co.uk/uk_tax_codes_guide.aspx

778 x 10 + 9 = 7789

By the looks of it changing to 747 would reduce your pre-tax allowances...?

That being said, I'm convinced the tax code system is designed to be as mind-bendingly complex as possible. When I input mine into HMRC it just gives me the answer that it is too complicated to be explained on the website or something.

 

[Morba]

Ring your tax office and ask them and pray they can decipher the crap they have online for you!

 

[Surveyor]

810L is the normal tax code for those eligible for the basic personal allowance indicating a personal allowance of £8,105.

Your tax code indicates an allowance of ~£7,780.

You should contact HMRC and ask them to expain your allowance/tax code.

 

[Guest2]

Is it better or worse to have a lower allowance? I dont want to shoot myself in the foot so to speak, by ringing them!

 

[Morba]

Is it better or worse to have a lower allowance? I dont want to shoot myself in the foot so to speak, by ringing them!

Depends on what benefits you have going on for salary sacrifice things I think

 

[Surveyor]

Is it better or worse to have a lower allowance? I dont want to shoot myself in the foot so to speak, by ringing them!

Higher.

Your allowance is lower than the standard personal allowance so you pay tax on ~£325 more income.

HMRC have decucted ~£325 from your allowance for some reason and they're the only ones who can explain why.

Presumably they thing you have income/benefits in that amount.

I suppose you take your chances on it being correct, too low or too high if you query it.

 

[Guest2]

Depends on what benefits you have going on for salary sacrifice things I think

Work pension, student loan and work medical. Private medical is free though though and just had to register for it - nothing appears on payslip about medical

 

[Pudney]

Work pension, student loan and work medical. Private medical is free though though and just had to register for it - nothing appears on payslip about medical

That will be a taxable benefit and is likely why your allowance has been reduced

The medical that is

 

[johnny6]

Medical will be worth something though even if it costs you nothing. As such you should have informed the tax office.

Your company probably didn't inform the tax office until April which means you have underpaid tax from January to April.

M1 is the code added to your tax code when you owe tax and they adjust your personal allowance to correct it.

 

[~Divine~Wind~]

810L is the normal tax code for those eligible for the basic personal allowance indicating a personal allowance of £8,105.

Your tax code indicates an allowance of ~£7,780.

You should contact HMRC and ask them to expain your allowance/tax code.

I tried cvallign them, despite never speakign to them before or supplying them any kind of info they decided I was not me and wouldn't speak to me. They wanted me to jump thru hoops and send them ID and some form...

Meh to hell with that I'll just trundle on lol

 

[Freefaller]

Consider yourself lucky, my tax code is 406L

 

[Rybo89]

40%, I would cry

Mr tax man has just gave me £1400 and gave me a extra £4k allowance before tax. I'm chuffed, wished I did a self assessment sooner.

 

[Richie]

Not sure I would cry at 40% given the healthy salary you would need to be on to get it to begin with...

 

[Diagro]

How do u go about getting a tax rebate?

 

[Theophany]

Consider yourself lucky, my tax code is 406L

406L sounds great. Mine's 224T and I'm a basic rate taxpayer.

The system is bent.

 

[Surveyor]

406L sounds great. Mine's 224T and I'm a basic rate taxpayer.

The system is bent.

The system isn't bent.

If your tax code is 224 instead of 810 then it's for a reason such as an adjustment for tax owed, untaxed income from another source, benefits in kind etc.