Tax Code 760l

Ela_2

Can someone please explain what this tax code means.
Thanks

Milarky

It means you can receive upto £7609 this year before tax.

A tax code is always 1 tenth in value of the amount of tax free pay. The 'L' at the end means something too - but has no effect on the amount itself.

(Don't ask me why)

dazza.mk

The 'L' means your entitled to the basic allowance (almost the standard for most employees)

You can see alternatives here:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015472

Ela_2

Thanks for the help

Johnhowell

Milarky wrote: »

It means you can receive upto £7609 this year before tax.

A tax code is always 1 tenth in value of the amount of tax free pay. The 'L' at the end means something too - but has no effect on the amount itself.

(Don't ask me why)

I think it will be £7605.

John

chrisbur

Johnhowell wrote: »

I think it will be £7605.

John

In practise the freepay figure used to work out your taxable pay on this code is 7609.68 if you are paid weekly and 7609.08 if you are paid monthly. All the codes have 9 at the end of the pounds and most have a few pence as well.

mtem74

you can always contact the tax office and get them to send you a copy of your coding notice. this will give you a breakdown to show how your tax code has been calcualted

jimmo

Just for information, the L suffix stands for “Lower”.
In days gone by single people and married women were entitled to the Lower Personal Allowance (Code suffix L). Married men were entitled to the Higher Personal Allowance (Code suffix H). It’s the same story with P and V codes. P is a single or married woman pensioner. V is a married man pensioner (or a married woman pensioner where the married couples allowance has been allocated to her).
Ela,
Sorry to be a pessimist but, to me, code 760L seems awfully high. I think most of us are currently on code 543L (which is changing this month automatically to code 603L)
Your code of 760L allows you to have (760-543) *10= £2170 more earned income tax free than the rest of us.
Why?
It is perfectly possible that you qualify for some additional tax relief that most of us don’t but I just feel that if you do, you will be in regular correspondence with your Tax Office about the additional allowances you are getting and would not have had to ask your question here.
Do you have a P2 which details how your code is calculated?