Does anyone know what tax code 607L IS?

CLAPTON

Too much information can be a handicap

you need to know
-that a normal tax code is 603L which mean that you can earn £ 6035 in the tax year before you pay tax.

-you have a tax code of 607L which mean you can earn £6075 before paying tax ... normally this is because you have some sort of additional work related costs (e.g. cleaning uniform )

no-one here can tell you your business .. you should have a notice of coding explaining you code

if not ..pick up the phone and ask the HMRC.

fengirl_2

Can I please correct an earlier post. 603L wk/mth1 is most definitely emergency code, which, by its nature is on a week 1/month 1 basis, which is whay it is called emergency code! 603L cumulative is the basic code for everyone who has not additional allowances or untaxed income.

AirlieBird

Fengirl, did you read the link I posted earlier, and which chriiiiis has also posted.

I'll help you out by quoting from the page.

The emergency tax code is set each year and is a number followed by the letter L. The number is the basic Personal Allowance (£6,035 for the tax 2008-09) divided by 10. The emergency code for 2008-09 is therefore 603L.
Depending on how it's worked out, you might also see '603L W1' or '603L M1' (meaning 'Week 1' or 'Month 1' - whereby you get a proportion of the Personal Allowance over the remainder of the tax year).

Or are you saying the tax authority doesn't know what it is talking about?:rotfl:

fengirl_2

I am saying the piece you have quoted is slightly misleading. Also to say that the code is 6035 divided by 10 is not altogether true. All code numbers are made up of the tax free allowance with the final digit left off. After 26yrs at the IR (inlcuding training employers on PAYE), I can reiterate that the emergency code is always operated on the week/month 1 basis.
The reason for the E code is that the new employer does not have previous pay and tax details for the year. If the new employer operated 603L on a cumulative basis, the employee would underpay tax as the cumulative basis would assume no previous pay and tax. If it is operated only on the pay received in the month or week in question, previous pay is not taken into account and tax is calculated just on this week's pay.

gordonstights

AirlieBird wrote: »

Fengirl, did you read the link I posted earlier, and which chriiiiis has also posted.

I'll help you out by quoting from the page.

Or are you saying the tax authority doesn't know what it is talking about?:rotfl:

To be honest I understood what fengirl was saying but then I read the link and am now confused!

The way I thought it worked was that for it truely be an "emergency" tax code, it had to be worked out on a Week 1 / Month 1 basis. If it isn't, then it's not emergency

I'm sure it will all become clear in the end

sweetietot

603L is the standard tax code based purely on the personal tax-free allowance and should be used for a new employee who has stated on form P46 that this is their first and only job since the beginning of the tax year and they have not been in receipt of taxable benefits or pensions. If they ticked box B, showing they have worked or been in receipt of taxable pensions/benefits, the employer would use 603L on a month 1/week 1 basis. Once the employer informs HMRC of the new employee, HMRC should then issue a corrected individual code based on the employee's circumstances, including previous pay and tax, if necessary, and any allowances or deductions due.
Often people think that code BR is an emergency tax code, but this is usually for secondary PAYE income.

Mikeyorks

deefadog wrote: »

Still clear as mud

Then read the Coding Notice (P2) issued to you. Close to 20M in the bulk issue in Jan 08 ...... so very likely you have one. These days they're 'personalised' - so the additional allowance you have will be explained as a completely separate entity as a 'Note'.

Mikeyorks

AirlieBird wrote: »

Or are you saying the tax authority doesn't know what it is talking about?

Knowing what they're talking about ..... but being able to draft it for public consumption - appears to be an increasing problem for HMRC. 603L is the new basic code wef this month. It isn't an emergency code if it's operated cumulatively. Therefore it is suffixed by M1 or W1 for emergency use. As fengirl correctly says - the quote you reference is, at best, misleading - at worst it's simply wrong.

AirlieBird

Mikeyorks wrote: »

It isn't an emergency code if it's operated cumulatively. Therefore it is suffixed by M1 or W1 for emergency use. As fengirl correctly says - the quote you reference is, at best, misleading - at worst it's simply wrong.

So this whole paragraph is wrong then?

If you're put on a cumulative emergency tax code

You'll usually be put on a cumulative emergency tax code if you've ticked Statement A on your P46 - telling your employer that this is your first job since the start of the tax year and you haven't been receiving any taxable pensions or state benefits.

gordonstights

AirlieBird - The way I read it from that paragraph is that the emergency code is cumulative or non-cumulative. If an employee hasn't earned any tax to date then they can be paid with a cumulative tax code. However the fact they still refer to it as "emergency" must mean that there could well be a change in the tax code as soon as the P46 is received by HMRC and any other factors (regarding the employee) are taken into consideration.

I was aware of this situation but I didn't know the HMRC referred to it as an "emergency" tax code when it was cumulative.

Makes sense now really as they have to refer to a 'temporary' tax code somehow.