What is tax code 647L?

shuvrajit

yes it has W1/M1

Wildside

shuvrajit wrote: »

Hi I am working since December 15.I have a tax code of 647L. I have a salary of 2500 per month. So the current financial year i believe I would be getting an allowance of 6475.But my tax is deducted as 391 + NI 222 for every month.I feel i am paying extra tax as I should be paying tax only on financial yr salary -> (9000(3.5 months) -6475).
Please could you let me know details on this.Before this job I have never worked in UK

Sounds like you could still be on Emergency Tax Code, if so you will get a tax rebate for this tax year but you need to check with HMRC, as you didn't have a P45 from last employer (because you hadn't worked in the UK before) you need to complete a form to claim it, unless you did this when you started the job & it is still being processed (they do take a while to get them sorted). Best to check with HMRC

http://www.hmrc.gov.uk/incometax/codes-basics.htm

For those eligible for the basic Personal Allowance - 647L for the 2009-10 tax year. It is also used for 'emergency' tax codes (read more in the section 'If you're on an emergency tax code')

Sometimes your employer or pension payer will have to use an ‘emergency’ or ‘special basis’ code until we've worked out what your tax code should be. This can happen if you start a new job and don't have a P45 for example. While you're on an emergency code you'll get the basic Personal Allowance - this may or may not be right for you, but the tax code will be reviewed and changed if necessary once we know more about your previous pay and tax. If you have paid too much tax under the emergency code, you will get a refund.

Once we have details of your previous income and tax paid for the tax year, we'll send your employer (and you) your full (correct) tax code. Your employer will deduct the correct tax in future and refund any overpaid tax. That's why it's very important that you give us any information we ask you for.

suso

shuvrajit wrote: »

Hi I am working since December 15.I have a tax code of 647L. I have a salary of 2500 per month. So the current financial year i believe I would be getting an allowance of 6475.But my tax is deducted as 391 + NI 222 for every month.I feel i am paying extra tax as I should be paying tax only on financial yr salary -> (9000(3.5 months) -6475).
Please could you let me know details on this.Before this job I have never worked in UK

With you saying that you have never worked in the UK before, have you recently come to the country. If so you should complete a form P86 (arrival in the UK), this form introduces you to the UK tax system, so HMRC known what you were doing before you started work. And can make sure you get your full personal allowances

louise1kerr

I am a student working part time on tax code 647L. In previous months i have done some extra shifts, working my monthly average wage for the past 6 months £705. i have paid, to date, a total of £351 tax and £283 NI. now that i have cut my shifts down and only earning £390 per month, will i get that tax back? Is there any way to get it back all at once?

zygurat789

John_Mcgrath wrote: »

Ok sorry to add to the confusion I am also on tax code 647L. I am on 30,000 per annumn paid every four weeks.

Weekly It works out i get 422.50 after tax, my girlfriend who is on 25000 per annumn gets 409 per week.

I pay 23 per week - 93 per month into a pension. I have no other benefits or cars.

Why if i am on 5000 per annumn more do i only clear £13 pound more then her?

You are paid 4 weekly and she is paid monthly? then you get paid once more than her.

jem16

louise1kerr wrote: »

I am a student working part time on tax code 647L. In previous months i have done some extra shifts, working my monthly average wage for the past 6 months £705. i have paid, to date, a total of £351 tax and £283 NI. now that i have cut my shifts down and only earning £390 per month, will i get that tax back? Is there any way to get it back all at once?

Unless you have a Mth1 after your tax code you will have paid the correct tax over the course of the year as 647L is a cumulative tax code.

To be sure though you would need to give more details such as gross pay to date, tax to date.

molerat

louise1kerr wrote: »

I am a student working part time on tax code 647L. In previous months i have done some extra shifts, working my monthly average wage for the past 6 months £705. i have paid, to date, a total of £351 tax and £283 NI. now that i have cut my shifts down and only earning £390 per month, will i get that tax back? Is there any way to get it back all at once?

Your tax is calculated each month on the amount due to date (unless your code is 647L(M)) and any overpayment will be returned in the next pay packet.

aloise

befor i get in touch with the tax office, can anybody give me some idea on a pensioners code. It's 422t doesn't sound right to me. Only get a state pension of £124 a week and £333 a month works pension. Claim married allowence and over 75. Would really be obiliged as this is a mine field to me

jem16

aloise wrote: »

befor i get in touch with the tax office, can anybody give me some idea on a pensioners code. It's 422t doesn't sound right to me. Only get a state pension of £124 a week and £333 a month works pension. Claim married allowence and over 75. Would really be obiliged as this is a mine field to me

State pension is paid gross but is taxable so is accounted for in your tax code.

At age 75 your personal allowance is £9640. Your state pension amounts to £6448 so this is deducted from your personal allowance to allow it to be taxed via your works pension. That leaves £3192 which would normally give a tax code of 319Y (Y being the letter for over 75s).

In your case the tax code is 422Y which presumably takes the extra Married Couples' Allowance into account. The allowance is normally £6995 but tax relief is only at 10% and not 20% so some adjustment will have been made. Also not sure if you claim all of it or it is split between you and your spouse.

Your tax coding notice should give you the exact figures of allowances and deductions.

alex3112

Hello, i've got tax code 647L and i am working for agency, but for some reason agency do not deduct any tax from me at all... I am trying to understand why is it happening...
Can someone explain me what's going on?