question on tax code.

illuminate

I have just noticed that my tax code for the whole of 07-08 was 543.

That implies a tax allowance of £5430 doesn't it ?

Yet according to the HMRC website for that year it should have been £5225.

Can I expect a bill ?

There is no reason I can think of for this, in fact I actually owed them and settled recently as a seperate arrangement for arrears from 06-07

chriiiiiiiis

Your 2007-08 coding notice will tell you why you had an increased allowance.

CLAPTON

why do you say it was 543 ? which document were you looking at?

illuminate

CLAPTON wrote: »

why do you say it was 543 ? which document were you looking at?

My wage slips.

...My coding notice just tells me what it is, it doesn't explain why.

jem16

illuminate wrote: »

...My coding notice just tells me what it is, it doesn't explain why.

Are you sure it doesn't explain why? If your code is different from the normal basic personal allowance the coding notice will always tell you why. Coding notices are not normally sent out if you just have the normal personal allowance.

CLAPTON

are you sure you're looking at the correct date.. whats the date on the coding notice and payslips

Wookey

Some jobs have a slight increase to there tax codes which is agreed with hrmc and unions, this is to cover additional expenses that are most likely to be incurred as part of doing that job.

trevormax

If you are less than £50 underpaid HMRC will not ask you to pay it back (unless you are on self assessment). If your tax code is incorrect and should have been 5225 instead of 5435 and you are a basic rate tax payer, this will result in only a £46 underpayment which means you might escape having to pay it back as long as nothing else adds to this unerpayment.

As has been said, you would have been issued a coding notice which would have said exactly why your code is different. It would have the code at the top and a small description of each component beneath it saying if any allowances have been added or deducted and why.

IsabjCobshd

Can I expect a bill please,

.........................
Chapa.

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fengirl_2

You probably have a small expense allowance in your code - what code is being operated this year? HMRC are certainly not going to come after you for anything under £100 underpayment.

illuminate

Wookey wrote: »

Some jobs have a slight increase to there tax codes which is agreed with hrmc and unions, this is to cover additional expenses that are most likely to be incurred as part of doing that job.

OK ... I think that sounds plausible as I was working from home at that time.

I'm happy enough to forget about it given the amount involved.

I was just curious really.