Wrong TAX Code??

Minimods

Hello,

Just this morning I have recieved a letter from the Inland Revinue stating my TAX code. I am pretty sure it is wrong though can somebody clarify it before I phone them?

The code is: 508L

The problem being I am a full time student and have been taxed £200-50 a month until I left (last pay slip should be in the post from tomorrow).

Obviosly I will be claiming the TAX back (wrong tax code before), but I am wondering if I am on the correct code now or does this need to be changed?

Its confusing because I was working full time, then went to College full time and got a Temp job... sorting out the TAX is proving to be a nightmare!

Thank you in advance :money:

CIS

This page may help

http://www.hmrc.gov.uk/pensioners/tax_codes_index.htm

£5035 is the basic tax code for 2005/06, so is it your new tax allowance for 2005/06 with an adjustment for an extra allowance you claim ?

Minimods

Sorry I have just re-read and this is for April 2006 - 07

Its still confusing me, surely I shouldn't be taxed at all? The problem is I may go over the £5k limit next year.

I think I might have to wait for the P45, P60 (?) and last payslip to come through.

CharleneUK

I got the same tax code and the same letter.

HOpe you get it sorted, I'm ringing IR tomorrow to discuss it as I'm on maternity leave.

CIS

Everyone has a tax code, even students.

If you earn above the tax code you will be taxed.

isasmurf

The letter you received from HMRC should break down the different elements of your tax code.

Your Personal Allowance for next year is £5035, so that would be 503L. To get a taxcode of 508L you have got some extra allowance for smoething which should be stated on your tax code calculation.

Its still confusing me, surely I shouldn't be taxed at all?

Are you thinking you shouldn't be taxed because you are a student? If you are, then you have fallen for the popular myth that students don't pay tax. Students have the same personal allowance as every other non-pensioner. Students can apply to be on a NT tax code if they only work during vaccations and expect their total annual income to be less then their personal allowance.

Minimods

Thanks for clearing that up isasmurf

I will study that letter then and I will be waiting for my payslip etc before I sort this all out.

The Tax code is probably right, good thing I asked here before phoning.

kimochi

Hi.

Not used this forum before, but thought it was the best place to ask.

I don't know anything about tax and codes. Have always assumed Basic Rate was what I should be on but it seems I may have been mistaken.

I lived out of the country for five years, and since returning to the U.K. and starting a new job in September 2008 I've been on the basic rate. Presumably that was done initially because I had no recent tax or employment records.

Do I need to get this changed? I have inputted my info into a salary calculator and my net earnings are coming out at roughly £100 per month more than I'm receiving.

And if I do get this changed, am I entitled to a rebate, and for how long a period? Would it only be up until April of last year?

Cheers.

zygurat789

What we really need to know is your complete tax code ie nnnA (n)

kimochi

Not really sure what you mean there.

My tax code is BR. If there's anything more to it than that, it isn't showing on my wage slip.

Mikeyorks

BR is a basic code with no personal allowances. It's not correct for someone with just one job .... but you're possibly right that this was done initially because you had no current history over here.

Did you complete a P46 back in Sept? If so - time to get in touch with the HMRC office your employer deals with and ask for an update. If not - get one completed. If this goes on beyond your end March paydate ..... you'll have to ask for a refund direct from HMRC ... which will take months. Better to get it sorted ..... and have that done automatically via your pay.