Not really cutting tax

Caroline73_2

But I thought you lot would know best.

I have eventually got around to doing my online 2008-09 SA and I owe approximately £600 in tax. I work part time too earning over the personal allowance, so I opted to have this £600 taken from my wages by adjustment of my tax code.

So do they adjust my tax code immediately or does it wait until April 2010? What about my anticipated SE earnings for 2009-2010?

I did try and look on website but it just confused me saying it had to paid by 31st January 2010?

suso

It will be adjusted in next years tax code.

As the tax liabilty is under 1000.00 then there will be no payments on account set up for the anticapted earnings 2009-2010

Caroline73_2

Thank you.

trevormax

Also, assuming you are a basic rate tax payer, you can expect your tax code to go down by roughly £3,000 (£600 x 100/20). This sounds like a lot but only equates to £50 extra per month in tax.

Caroline73_2

Thanks Trevor. I knew how they adjusted the code but just wasn't sure when they did it, it was pay by 31st Jan that confused me.