Totally Confused with Tax codes

Ela_2

Can someone help???
P60 year 2007 -08 final tax code 522L
P2 2008 - 09 issue date May 2008 tax code 760L which replaces 543L
Filled in online tax assesment - refunded £960
P2 2008 - 09 issue date Oct 2008 tax code 603L which replaces 820L
PAYE coding notice states I now could owe since April 2008 £433.

No tax code seems to tally with previous code, am I thick?

Being made redundant November 2008

What now?

dori2o

Phone the tax office and ask what triggered the coding changes. It's possible it was from information submitted on tax returns, review forms etc. How is the code calculated (allowances/deductions from P2). What has changed for the code to be adjusted?

Best thing to do is call hmrc, they have all the informnation needed to advise why the code was adjusted.

mrkbrrws

The gaps where you can't agree previous codes are where a standard increase was brought in for everyone on an 'L' code.

2007/08 522L
2008/09 Everyone got +21 which gives 543L
Something then changed so your code became 760L
September 2008 Everyone got +60 which gives 820L
Then HMRC realised that you only needed a basic personal allowance coding and changed it back to 603L?

What does the P2 you received May 2008 say makes up the 760L?

As long as you do Tax Returns the tax will be corrected in your balancing payment/refund.

Ela_2

Thankyou for explaining, so easy when explained like you did.
The reason for the May change I can see is the total amount claimed against mileage. This was added on to the personal allowance. My husband filled in a P87 last tax year. This year he had a self assesment form to fill in which I did online. With the latest P2 the code is just for the personal allowance.
My next question is, do you think the code is correct?

CLAPTON

603L is the standard tax code
if he has no benefits in kind or doesn't claim expenses then the code is correct

if however he has benefits in kind or is claiming (mileage ) expenses through his tax code then it incorrect.

did you include the mileage expenses when you filled in the tax form online?

Ela_2

I believe I did I have printed the 'view your calculation'
From the print out this is how each line reads..................

Pay from employer £.......
Plus benifits and expenses recieved
Minus allowable expenses
Total from all employments
Pay from all employments
minus personal allowance
Total income on which tax is due
How we have worked out you tax
Total income on which tax has been charged
Income tax charged
minus tax deducted
Estimated overpayment at 31 Jan 2009
2007-08 balancing credit
Total overpaid at 31 Jan 2009.

Now with the new code they state between 2008 April, until the employer uses the new tax code tax is owed, It states' Once the employer use the new code you will get aproportion of the new tax free amount (we will tell them to use your tax code on a special basis) anf the tax taaken off you should be right from then on.
We have changed your tax code using the information in your tax return.
Hope you understand!