647L Non-Cumulative tax code

[Holly2kbabe]

Hi, can anyone help?

I started my job with the NHS in Sept 09 and my tax code was put as 647L NonCum. I have spoken to my tax office (which didnt explain anything) and have changed by tax code, to 647l Cumulative... and am awaiting to see changes at the end of this month.......

Not sure what changes will happen and dont want to be stung with a tax repayment??
Does anyone know if there will be a change in the amount I am being tax? Will I get a rebate or do I owe???

Any ideas?

[jem16]

What were you doing from April 6th 09 till you started your job in Sept 09?

[Holly2kbabe]

Hi,
Well was made redundant on 19th Jan 09
20th Jan - 22 Feb - unemployed
23-26 Feb 09 - temp job
march 09 - aug 09 - temp job
sept 09 - Started the NHS

[fengirl]

One hopes that HMRC have gathered the details of your temp job and notified them to your employer. You are now off E code and you may find a small refund in your next pay packet. Nothing you can do about it now - you should have got it sorted out as soon as you started at this job.

[Holly2kbabe]

At my last temp job I was on a BR W1 code, and was eventually put on the right code but dont think I ever see a tax refund??

I gave my p45 to my current employer, but they claimed they never see it? Hense, why I didnt realise.
So is the Non-Cumulative an emergency code?

[fengirl]

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.

[Holly2kbabe]

I dont really understand tax, I guess the HMRC love people like me.
So on a 16k salary, what sort of rebate am i looking at...... £10?

[fengirl]

No, HMRC do not love people like you. People who keep their tax affairs up to date are far easier to deal with! Always, always make sure you get a P45 from an employer you leave and hand it right over to your new employer. If the new employer does not operate the P45, contact payroll immediately and give them the details from the P45(1a). Never let your affairs slip or you end up with repayments like you have done.
Impossible to say what your refund would be without know the pay and tax deducted from all your jobs this tax year.

[Holly2kbabe]

Jeeeze I feel like im being told off.
I got my p45 and sent it off to payroll - See the tax code 647L and thought everything was ok. Never having a problem before / didnt seem to be taxed a overly large amount, and being a new employee I thought the Non-cumulative was something the NHS did, as the pay slip was very different to previous.
As I said before not very good at understand tax/NI deduction %'s and codes.
I can only read up online and only just found this site (thanks to GMTV)

[fengirl]

I'm not telling you off! I'm trying to help you not get into a mess again.

[Holly2kbabe]

Its not really a mess. As soon as I reliased the code was wrong I got on the phone to the taxoffice and they are sorting it. I just wanted to know if I would be due a rebate or owe money so I could be sure to have enough money if any was deducted.

[zygurat789]

Originally Posted by fengirl

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.

[jem16]

Originally Posted by fengirl

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?

[Holly2kbabe]

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]

Originally Posted by Holly2kbabe

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.

[Holly2kbabe]

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]

Originally Posted by Holly2kbabe

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]

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

[dzug1]

Originally Posted by kofi100

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

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]

Can anyone explain the difference between cumul vs noncumul tax codes?