Tax Question (code change)

Sp00n

Sp00n

Sp00n

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Joined
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Brighton
So to give you a bit of background, I used to have a company car in my old job and a fuel card which included personal miles, it was great because I never had to worry about any of the costs for the car, however I did loose all of my personal allowance for the pleasure but no big thing.

Fast forward to April last year, I quit my old place after 3 years leaving all of my vehicle privileges behind and got another job, this one was office based so no company car. I was expecting my personal allowance to go up to the full amount (£7475 I believe), however it didn't, I got a code of 551T which meant I was paying tax on an additional £958 (PA last year was £6475 max) of my income. I rang the HMRC up and spoke to someone who basically said I need to keep paying it as it's worked out over the year. I didn't fully understand but I accepted it as I assumed he wouldn't BS me.

Now fast forward again to last week and I have now received a new tax code of 469T, which is obviously lower than last year, the personal allowance has gone up to £7475 admittedly but is that the same percentage as last year?

My main question I suppose is does this make sense, should I be paying anything towards having a company car that I haven't had for nearly 10 months now?

I will be phoning HMRC again tomorrow to find out but I wanted to get my facts straight first and see if I actually need to.

Any advice is greatly appreciated.
 
Your personal allowance for 2010/11 should be £6,475. The new code notice should explain how they worked it out at the bottom.

Do you have any benefits in your new employment at all? If not and you have no unpaid tax then it should be 647L.

Ring them back, ask them why it's different and if they don't tell you a reason why that matches your circumstances then tell them to change it. Don't take "we can't" from them caus that's balls.
 
This code is for 2011/12, I have absolutely no benefits from my current job. My code should be 747L, is that right?
 
It should be yes. I just got my code of 580L as apparently when I took a company car at my last employer they decided to remove my car allowance payment but didnt change my tax code. As such £350 of unpaid company car tax to come off this year.

If you code is not 747L for 2011/12 then you are still paying tax on benefits or clearing unpaid tax. You should have got a P800 to explain their calcs on your tax code.
 
Sp00n said:
This code is for 2011/12, I have absolutely no benefits from my current job. My code should be 747L, is that right?
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PA for 2010/11 is £7475 so should be 747L yup. Assuming no benefits or tax due from a prior year. As I said, ask HMRC how they calculated your code.
 
The standard tax code is 645L until april 5th then 745L. TBH you might as well wait until then when you get your P60 then just drop that into the nearest tax office and they will look into it for you.
 
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I'll throw this in here as it is slightly related :p

I recently started my first ever job at Sainsburys. Just a part-time contract to get me through University. I have been emergency taxed the past two months and I have no idea what to do to get it changed.

The HMRC websites tells me to contact my Tax Office however does not provide any contact details and I have no idea where or what my tax office is.

Do I go through my employer to get it changed, phone HMRC directly or try and find my tax office?

Thanks.
 
Garee said:
I'll throw this in here as it is slightly related :p

I recently started my first ever job at Sainsburys. Just a part-time contract to get me through University. I have been emergency taxed the past two months and I have no idea what to do to get it changed.

The HMRC websites tells me to contact my Tax Office however does not provide any contact details and I have no idea where or what my tax office is.

Do I go through my employer to get it changed, phone HMRC directly or try and find my tax office?

Thanks.
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Ask your employers for a P38(S) form - if you're a full time uni student, you can go on a NT tax code (as it sounds like you won't go over the allowance)
 
Spoke to HMRC who confirmed that my code should be 747L in the new tax year, they made a mistake and didn't take of my car/fuel benefits.

My tax code was 551T last year because they shared the 1 month owed (I changed jobs in may) over the course of the year.

Thanks for the confirmation chaps :)
 
So...come April my tax code is going to change to 745L? Meaning? I wont get taxed on £7450~ of my income or? Is this only for certain people?

Garee said:
I'll throw this in here as it is slightly related :p

I recently started my first ever job at Sainsburys. Just a part-time contract to get me through University. I have been emergency taxed the past two months and I have no idea what to do to get it changed.

The HMRC websites tells me to contact my Tax Office however does not provide any contact details and I have no idea where or what my tax office is.

Do I go through my employer to get it changed, phone HMRC directly or try and find my tax office?

Thanks.
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This happened to me in my first job, it just randomly changed to BR after a few months, I just told my employer and they handled it. Ask someone in HR for instance? Or your line manager / manager?
 
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Delvis said:
So...come April my tax code is going to change to 745L? Meaning? I wont get taxed on £7450~ of my income or? Is this only for certain people?
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Correct, the first £7450 you earn during the tax year starting 6th April 2011 is tax free. If you didn't earn above this amount you'd pay no income tax at all. This tax free allowance is obviously split over the course of the year if you do pay tax so that it is an equal amount you pay each month.
 
Stumble Bum said:
Correct, the first £7450 you earn during the tax year starting 6th April 2011 is tax free. If you didn't earn above this amount you'd pay no income tax at all. This tax free allowance is obviously split over the course of the year if you do pay tax so that it is an equal amount you pay each month.
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Ah okay, thanks for that :)

Maybe it will help me out a little bit then :o...Is there a way to calculate what I take home before and after this comes into place?
 
danielanthony said:
Yeah but the 40% band is lowered so whereas now anything over £43,875 is taxed at 40% after April it will be £42,375.

Oh, and NI goes up 1% too :(
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So in other words they give you one thing and add something else, so you infact gain nothing. NICE ONE
 
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