647L Non-Cumulative tax code

2

Comments

  • zygurat789
    zygurat789 Posts: 4,263
    First Anniversary Combo Breaker
    Forumite
    fengirl wrote: »
    No, non-cumulative is code 647L operated on a cumulative basis so it sweeps up all your previous pay and tax and brings you right up to date.

    I'm not surprised you didn't understand.
    You can earn £6475pa tax free
    PAYE gives you 1/12 monthly, 1/52 weekly etc against your first month/week's payslip earnings and
    1/12 or 2/52 against your second month/week's earnings etc.
    So each month/week you get £540/£125 tax free which is what tax code 647L M(W)1 gives you and can be viewed as your basic right and is the emergency rate. The M1 or W1 indicate that the code is non-cumulative.
    You are given this rate (for among other reasons) when HMRC do not have your full record for the year, for the cumulative code to work correctly you must have the cumulative income for the year to date from 6 April.
    To get yourself sorted out you need to give HMRC your employer and pay details for the year. If you don't have your pay details then they can find out from the employer direct.
    The only thing that is constant is change.
  • jem16
    jem16 Posts: 19,397
    Name Dropper First Post First Anniversary Photogenic
    Forumite
    fengirl wrote: »
    No, non-cumulative is code 647L operated on a cumulative basis

    That doesn't make sense.

    How can a non-cumulative code be operated on a cumulative basis?
  • I really dont understand it, dont think I ever will. Just wanted to know if I owe money to the tax man???

    It might be easier if I explain my pay slip......

    £15190(salary) + £912 (London waiting) - on monthly pay
    Taxcode 647L NonCumulative

    Basicpay = 1265.83
    + London Waiting 76.00

    Deductions:
    PAYE -146.80
    NI D -80.37
    Pension -67.09

    Taxable pay £1,274.74
    Total payment £1,341.83
    Total deductions £294.26

    paid = 1047.57

    Is my tax too high... if so how much should it have been??? It doesnt seem too high, which is why im worried I havnt been paying enough tax?
  • jem16
    jem16 Posts: 19,397
    Name Dropper First Post First Anniversary Photogenic
    Forumite
    Is my tax too high... if so how much should it have been??? It doesnt seem too high, which is why im worried I havnt been paying enough tax?

    Your tax for the month is correct - exactly as it should be.

    The tax code of 647L is the normal tax code for everyone under age 65 with no taxable benefits so you are more than likely paying the correct amount of tax. It's very unlikely you will owe any tax.

    What we can't tell you is if you are due a refund without knowing your total income for the tax year. To get that you would need to tell us what the P45 TOTAL taxable income and TOTAL tax paid was. Then you would need to tell us what your payslip said for the TOTAL taxable pay and TOTAL tax paid - not just the figures for the one month that you have just posted.
  • I dont have my p45 - I gave it to my employer and it got lost, so they do not have any previous figures, nor do I.

    My pay slip says
    Goss pay £8050.98
    NI pay £ 8052.88
    NI conts £482.40
    NI letter D
    Taxable pay £7648.44
    Tax paid £880.80
    pension £402.54

    If any of that helps.
    I was hoping for a tax rebate but as long as I dont owe any money, then I'm a happy bunny!
  • jem16
    jem16 Posts: 19,397
    Name Dropper First Post First Anniversary Photogenic
    Forumite
    I dont have my p45 - I gave it to my employer and it got lost, so they do not have any previous figures, nor do I.

    You should have kept part 1a of that P45 - the rest should have been given to your employer.
    If any of that helps.

    Not without knowing how much you earned in the temp job.
    I was hoping for a tax rebate but as long as I dont owe any money, then I'm a happy bunny!

    It's going to be every difficult for you to obtain a refund without that P45.
  • kofi100
    kofi100 Posts: 14 Forumite
    hiya my daughter started at nhs last month she got her wage an had been taxed £500 as she didnt have a tax code today she got paid and they have taxed her £290 and insurance of £274 and her tax code is 647l noncu, is this emergency tax? what happens to the £500 she paid last month will she get it back? thanks :A
    Old Faithful we roam the range together,
    Old Faithful in any kind of weather,
    When the round up days are over,
    And the Boulevard’s white with clover,
    For you old faithful pal of mine.
    Giddy up old fella cos the moon is yellow tonight,
    Giddy up old fella cos the moon is mellow and bright,
    There’s a coyote crying at the moon above,
    Carry me back to the one I love,
    And you old faithful pal of mine.
  • dzug1
    dzug1 Posts: 13,535
    First Post Combo Breaker
    Forumite
    kofi100 wrote: »
    hiya my daughter started at nhs last month she got her wage an had been taxed £500 as she didnt have a tax code today she got paid and they have taxed her £290 and insurance of £274 and her tax code is 647l noncu, is this emergency tax? what happens to the £500 she paid last month will she get it back? thanks :A

    She will not get the NI back - that is independent of the tax code.

    Once she gets a proper tax code (ie cumulative) she will get back any excess tax that she has paid. What that actually means in £££ - not enough info to work it out.
  • superstar_2
    superstar_2 Posts: 2,104 Forumite
    Can anyone explain the difference between cumul vs noncumul tax codes?
  • amiehall
    amiehall Posts: 1,363 Forumite
    superstar wrote: »
    Can anyone explain the difference between cumul vs noncumul tax codes?

    A cumulative code would allow everything you've earned and all the tax you've paid in the year to date to be taken into account every time you're paid and helps to make sure that, over the year as a whole, you pay the right amount of tax for your earnings.

    A non-cumulative code treats each pay period in isolation. For example if I was paid monthly, each month HMRC would allocate 1/12 of my personal allowance and anything earned over that sum is taxed at 20%.

    A difference arises if you have any periods in the year where you earn less. For example I switched from full-time to part-time work part way through last year. As my code was cumulative, every time I was paid after I cut down, I received a bit of tax back in each pay to make sure that at the end of the year, I had the benefit of my full personal allowance. Without that cumulative code, every month where I earned under 1/12 of the personal allowance, I would have lost the "extra" portion of the allowance and, as I paid a lot of tax some months, I would have overpaid for the year as a whole.

    Sorry that's ended up a bit verbose. Is that a bit clearer?
    Sealed Pot Challenge #239
    Virtual Sealed Pot #131
    Save 12k in 2014 #98 £3690/£6000
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards