What's the difference?

Catty212

I was just wondering what's the difference between the tax coses BR and OT?

I am on the correct tax code for my day job ( 37 Hours per week) but am currently on OT for my evening job ( hours vary, though I worked 35.5 this week) and have found some other people are on BR. What's the difference between Basic Rate and OT?

Thanks in advance

wmonkey

This should give you all the info you need http://www.hmrc.gov.uk/incometax/codes-basics.htm

T - If there are any other items we need to review in your tax code

fengirl_2

BR means that tax is deducted at basic rate (20%) from all your pay. Code )T means that the first £36k is taxed at 20% and the rest at 40%. Unless you are a higher rate taxpayer, they amount to the same thing.

Catty212

Thanks for that, just wanted to check everything was in order.