Change in tax code help?

mintymoneysaver

Due to professional subscriptions my tax code has now changed from 489L TO 512L.
just wondering how much better off this will make me each month, and also they are backdating it for 6 years so how much could I hope for as a rebate?
Thanks...

fannyadams

OK
512 - 489 = £230 per annum.
£230 x 6 = £1380
My best guess - don't take my word for it - would be £1380 and they'll probably 'adjust' your tax code further so that they don't have to give you an actual refund.

You will be able to earn up to 5120pa before they tax you on your earnings, as opposed to 4890pa you were able to earn before they taxed you.
this works out as an extra £19.16 per calendar month (divided by 12) or 4.33 per week (you have to divide by 53 - I dunno why but my mate who works in the HMRC says that's how they caluclate the per week amount).
mind you don't spend it all in the same shop!

mintymoneysaver

Seems very generous! Wouldn't that be how much I could earn, so it would just be a percentage of that? I was thinking more like £100?

Careful_ly

Minty I would think that this change in code will save you £50 per year if you are a basic rate tax payer £230 x 22% = £50.60

mintymoneysaver

I think that sounds a bit more realistic, will be nice if I get a rebate though...!