What is tax code 647L?

RTSFirebat

Hello,

Sorry if this has been asked a million times before, but I recently checked my wage slips, since starting work in my current company on the 3rd of March 2008, and I appear to be on tax code 647L.

Is this a emergency tax code? If so does that mean I'm possibly overpaying tax at this moment in time?

Thanks in advance.

PlutoinCapricorn

647L is the new, ordinary tax code as from 6th April 2009.

The Personal Allowance, the amount that you can earn without paying tax, is £6,475.

Between 6th April 2008 and 5th April 2009, the equivalent code was 603L as the (revised) personal allowance was £6,035.

I hope that this makes sense.

RTSFirebat

Yeah that makes sense, so does that mean I'm not overpaying my tax?

dgl1001

no your likely not to be overpaying.

RTSFirebat

Ok long as that is the case Last thing I want to do is call the tax office and them find out I've under paid them

PlutoinCapricorn

It is always worth keeping an eye on your code, as mistakes can be made.

If you have NOT got the standard code, which increases each year along with the Personal Allowance, it is always worth trying to understand why.
Also, if you know that you should have an adjusted code and that you ARE on the standard code, again it is worth trying to find out why.

Another good things is to get ahead of the game: if they announce the Personal Allowance for FY 2010/11 in a budget this November, you can predict what your tax code will be as from next April 6th, and be ready for the change (upwards I hope) when it comes.

Any

Do you have a company car? private medical insurance paid for by the company? Any other benefits from the company?
If no, then you shouldn't underpay them.

RTSFirebat

No I don't so everything appears to be in order. Thanks everyone.

bloy182

Hi - i have the 647L too, before it was 503L
It seems im getting taxed more,
I earnt £3010 before deductions
i paid 494 Tax and 278 N.I., in total £772 deductions
Is this right? it seems like a lot of money being deducted

Mikeyorks

bloy182 wrote: »

Hi - i have the 647L too, before it was 503L
It seems im getting taxed more,
I earnt £3010 before deductions
i paid 494 Tax and 278 N.I., in total £772 deductions
Is this right? it seems like a lot of money being deducted

I think you will find it was 603L for 08-09. Your personal allowances have increased for 09-10 .... so you will only be paying more if you're earning more?

Try this calculator. The deductions you quote are spot on if the £3010 is gross for April :-

http://www.listentotaxman.com/index.php?c=1&yr=2009&age=0&add=0&code=647&pension=0&time=12&ingr=3010&vw%5B%5D=yr&vw%5B%5D=mth&vw%5B%5D=wk

jem16

Mikeyorks wrote: »

I think you will find it was 603L for 08-09. Your personal allowances have increased for 09-10 .... so you will only be paying more if you're earning more?

Or he was paying too little last tax year for some reason - started working part way through the tax year?

Now he's paying the correct amount.