Tax Code change 647L to M1 367L

Almost_In_The_Black

Hi all,

I have a question on something I've just noticed on my payslip - I've seen that between my April and May payslip my tax code has changed. In April it as 647L and from May onwards it's M1 367L. Now I understand that an M1 indicates my tax is being worked out monthly and not cumulatively but I cannot see why that would need to be the case. Nothing changed between April and May that could be a trigger.

Does anyone have any thoughts?

Any

647L is the code most employees is on.
The change in tax code would suggest that you get some benefits from your company. Company car or private insurance or anything like that?
M1 is because HMRC found out late and if they didn't do that, the payroll system would aslo take out the tax you didn't pay until May - so your net pay would be really low.

Thanks to the current economical climate HMRC realises that people don't have much spare money and to save you the shock of having a month of such a low pay they rather put you on M1 (this is info I got from HMRC when I askedabout an employee who was in similar situation couple of weeks ago)

But it will catch up with you on the end of the year, as they will possibly send you underpayment letter.

Any

Also you should get notification letter about the change in your tax code and reason why. Are you sure you didn't get anything?
Give them a ring.

Almost_In_The_Black

Thanks for that, I've been digging around and I think it's due to some confusion I had with my employer. My team and I worked offsite in Leeds for a few months March-May and so to get us there and back they gave us a pool car (in my name purely as I'm the senior person), after much wrangling HR agreed this was not a taxable benefit as it wasn't for personal use. But I'm wondering if they have given HMRC the information that it's a company car (for which I would of course be taxed).

Strange I didn't get any notification though, I tend to be really careful about reading stuff like this, of course there's always the chance I missed it.

I'll call them tomorrow and see what they say, thanks for the help though.

Any

If it was a pool car and you explain it was then they will change the tax code again.

Glad I could help.