K160 Tax Code

Kris1985_2

Hi,

I am currently earning £25k per annun and have been on a K160 tax code and not sure why to be honest, i have spoke to the tax office and they are changing my tax code to 435T, never heard of this tax code either.

I started my new job in Jan 09 on tax code (K160) and they have changed it to (435T) starting from 01 Sept 09.

Will i be getting a tax rebate at the end of this month?

And what does a T code mean?

Thanks,

Kris

dzug1

Tax refund - probably. But only for the current tax year. If anything is due for Jan-Mar it will be a separate cheque.

The T means you are not getting a standard personal allowance, therefore if that personal allowance changes your tax code will have to be recalculated manually - you won't get the benefit of it automatically

Kris1985_2

Is there anyway of working out Tax Rebates?

fengirl_2

Refund for this year will be about £596. For last year it's impossible to say without knowing what the restriction in your code is and what relates to last year.

Kris1985_2

Thanks i dont really understand all this tax stuff lol

fengirl_2

What does your notice of coding say - how is the code arrived at? If you dont have a notice of coding you need to ask the tax office for a copy. Its imprtant that you understand you tax.

Kris1985_2

I didnt get one, i phoned them up originally to tell them that i now had a different company car, thats when the lady in the tax office said i shouldnt be on a K code, and that she will change it to a T code.

Any

Do you only have a car or do you also get free private mileage fuel?

Also what is the car?

Any private medical insurance?

Kris1985_2

Only have the car.

VW Polo 1.5 Diesal (2009 Reg) (Zero Emissions Version '£35 tax per annun')

No private medical insurance.

Cheers,

Kris

System

Kris1985 wrote: »

I didnt get one, i phoned them up originally to tell them that i now had a different company car, thats when the lady in the tax office said i shouldnt be on a K code, and that she will change it to a T code.

I would assume that the K code might have been down to previous benefits in kind that you had from your employer.

You can ask HMRC to review your tax for any previous years by sending them your P11ds and P60 and/or P45. They will then assess whether you are due a refund for the previous years.

Any

Pam17 wrote: »

I would assume that the K code might have been down to previous benefits in kind that you had from your employer.

Yes, I agree the K tax code could be due to your previous car... Do you have old P11D and could you tell us about what is on it?

This new car should not bring you below L code... Basic tax code is 647L, which means that we can earn £6475 per year before we pay tax - that is divided into 12 months or 52 weeks, depending on whether you get paid monthly or weekly, deducted from your monthly pay and the rest is taxed.

Your car lowers this amount, as the car is also taxable - it is benefit that can be calculated into monetary value and that is why HMRC change your tax code when you get company car.

K code means that your car (and any other benefits) wiped off all of the £6475 and a bit extra!! So you pay tax on everything you earn and a bit extra. For you to be on that tax code and you only had a car the car would have to real gas nuzzler!!

I don't understand why did they now put you on T code - I think they need more time to recalculate how much tax you actually paid in this tax year and how much you should have paid and adjust... Do you know whether you are on cumulative or wk1/mth1 tax code?

For future - next time you finish one job, let HMRC know you returned your car and when you get a car from new company make sure employer submitted P46car (info about you having a car and which one) or you let HMRC know you have the car. Then you will be able to keep on top of your tax.