Correct Tax Code?

uphillstruggle_2

I am confused about my tax code I earn £23088 a year and my code is 498L. Is this correct? I dont have a company car, student loan etc etc.

I was able to check my code for last year on a website. My P60 for 2007/08 shows that I earned £22716 and my tax code was 500L but this website said it should have been 522L.

Have I overpaid/underpaid and are things correct now??

CLAPTON

the 'normal' tax code for this tax year is currently 543L
and last year's was 522L.

usually the reason for variation are benefits in kind or tax owed from previous years

otherwise .. have you received a notice of coding that explains how your tax code is determined?

otherwise phone HMRC are ask

uphillstruggle_2

If I was supposed to be on 522 last year and 543 this year would that mean I owe money or they owe me money??

System

uphillstruggle wrote: »

If I was supposed to be on 522 last year and 543 this year would that mean I owe money or they owe me money??

If your code is lower it means you won't have as much tax free pay so it's likely you are repaying an underpayment from an earlier year OR you have had benefits in kind previously and HMRC aren't aware they have ceased and they are still included as a deduction in your code.

CLAPTON

they would then owe you money

but there has to be a reason for your tax code.

uphillstruggle_2

What is classed as benefits in kind? I get BUPA healthcare cover but thats it. Oh and £20 M&S vouchers at xmas!:rotfl: I cant think of any other benefits I get.

CLAPTON

yes BUPA is a benefit in kind

anything that is a financial benefit is included... what is it worth?

claireabelle_2

worth phoning HMRC and asking - I called last week querying mine and they had incorrectly deducted #500 of business expenses incurred but not reimbursed, they apologised and have corrected mine.
Claire