What is tax code 647L?

zygurat789

John_Pierpoint wrote: »

I would have thought that, prior to the World War II, most employees did not earn enough to pay any tax at all?

Yes the exploitative employers were really mean to the underrepresented workers then and the personal allowances were lower then

Mahmood_Reza

Purely a historical point & probably only of interest to me but "In 1939, the standard rate of income tax was 29% with surtax at 41% for incomes over £50,000. Ten million people were liable for tax, and the total sum raised was £400 million. Successive increases in rates and lowering of allowances led to 1944-45 figures of 50%, surtax at 48% for incomes over £20,000, fourteen million taxpayers and nearly £1,400 million raised." - quoted from HMRC.

zygurat789

Mahmood_Reza wrote: »

Purely a historical point & probably only of interest to me but "In 1939, the standard rate of income tax was 29% with surtax at 41% for incomes over £50,000. Ten million people were liable for tax, and the total sum raised was £400 million. Successive increases in rates and lowering of allowances led to 1944-45 figures of 50%, surtax at 48% for incomes over £20,000, fourteen million taxpayers and nearly £1,400 million raised." - quoted from HMRC.

Whereas we now have 30,600,000 taxpayers paying £150bn. Not to be compared with the ten million and fourteen million above which did not include many working people who effectively had no income or tax liability.

Figures from HM Treasury.

John_Pierpoint

Agricultural minimum wage:

Oct 1938 - Sep 1939... £1/14/8.....50.2

That is £1.73 for a 50h 12m working week:eek:

Oohh Arrrrr

Hear are some figures showing how far we were under water last time there was a borrowing crisis

http://www.theyworkforyou.com/wrans/?id=2002-02-28.38424.h

Linj

My 16 year old son has just started work on a 'bank' agreement before he starts college and is on code 647L, but will he be entitled to a tax rebate at the end of the fiscal year? So far he has paid £47 tax and £26.80 NI for a month's work. Seems a little punitive.

jem16

Linj wrote: »

My 16 year old son has just started work on a 'bank' agreement before he starts college and is on code 647L, but will he be entitled to a tax rebate at the end of the fiscal year? So far he has paid £47 tax and £26.80 NI for a month's work. Seems a little punitive.

If he earns less than £6475 over the tax year then yes he would be entitled to a rebate.

Is there a Wk1/Mth1 after the 647L tax code?
Did he fill in a P46 when he started?
When did he start?
What was his month's wage?

irfan00

Hi,
I am on tax code 647L.
can anyone explain to me the deductions involved here. The tax deducted and the NI paid. Would be greatful
Thanks

jem16

irfan00 wrote: »

Hi,
I am on tax code 647L.
can anyone explain to me the deductions involved here. The tax deducted and the NI paid. Would be greatful
Thanks

Every month anything over £539.58 will be taxed at 20%. NI will see 11% taken off.

CLAPTON

irfan00 wrote: »

Hi,
I am on tax code 647L.
can anyone explain to me the deductions involved here. The tax deducted and the NI paid. Would be greatful
Thanks

A tax code of 6475 means you can earn 6475 in the year before paying 20% tax
this is spread evenly throughout the year so each month you can earn 6475/12 = £549 before tax

In additon you will tax NI contributions on the monthly earnings above £476 at either 11% (if contracted into the second state pension) or 9.4% if contracted out.

jennifernil

Be aware also that while tax can be reclaimed later, if appropriate, the NI deduction cannot.