Tax code change for 2010-2011

RASTIE_2

Hi,guess this has been asked a million times done a quick search & nothing too recent.
Got a letter from the tax office saying my tax code for 2010-2011 will be changed from 603L TO 647L,what does this all mean,havent recently changed jobs (been with the same company since i left school 18yrs ago),have i done something wrong/paying to much tax.a quick read through some of the threads releted to this have been from way back late 2008 early 2009.why is mine being changed so late?
so what can i expect come april? a bill on my doorstep for paying to much or slighty better off in my weekly pay packet?

THANKS

PlutoinCapricorn

In general the higher your tax code, the less tax you pay. It shows how much you can earn before you start paying tax. It often corresponds to the Personal Allowance for a particular tax year:

PA £6,035 for 2008/09 gave a tax code of 603L for many people

PA £6,475 for 2009/10 gives a tax code of 647L for many people

The PA usually increases by 2% or so each tax year: it may still be £6,475 for 2010-11. But your tax code for 2008-09 seems wrong: what is on your payslips?

fengirl_2

I think you need to check whether you have been on the right code for the previous few years and the current year. As previous answerer says, your code number is, on the face of it, lower than it should be and you may have been overpaying tax. Give your tax office a ring to check.

RASTIE_2

PlutoinCapricorn wrote: »

In general the higher your tax code, the less tax you pay. It shows how much you can earn before you start paying tax. It often corresponds to the Personal Allowance for a particular tax year:

PA £6,035 for 2008/09 gave a tax code of 603L for many people

PA £6,475 for 2009/10 gives a tax code of 647L for many people

The PA usually increases by 2% or so each tax year: it may still be £6,475 for 2010-11. But your tax code for 2008-09 seems wrong: what is on your payslips?

Hi looking at my most recent payslip tax code is 603L

PlutoinCapricorn

The personal allowance for 2010-11 is definitely the same as for 2009-10, so 647L for the coming tax year is correct assuming that you have no special circumstances that would reduce/increase the amount of tax you will pay over the year.

The question is, why are you not on 647L for 2009-10? Have you got a company car or other benefits?

Have you got payslips for 2008-09 and is the code 603L?

The code should have changed in April/May 2009. Perhaps you should give your tax office a ring, or ask your employer if they forgot to apply the current code. Did they get a notification from HMRC?

RASTIE_2

Thanks for the helpful replies,rang my local tax office & it appears im one of the "ones that sliped thrugh the net" & my employer hadnt changed my code,so basically it'll right itself between now & the end of the current tax year (hopefully).
thanks again

PlutoinCapricorn

That is great news.

This just shows how important it is to keep an eye on your tax affairs and not trust HMRC and your employer to always get things right. I wonder it would have been picked up by HMRC soon after April 5th 2010 when the employer submitted their annual return.

Any

RASTIE wrote: »

Thanks for the helpful replies,rang my local tax office & it appears im one of the "ones that sliped thrugh the net" & my employer hadnt changed my code,so basically it'll right itself between now & the end of the current tax year (hopefully).
thanks again

It will correct itself IF your employer changes your tax code ASAP... As your tax code notice says "tax code for 2010-11" they will only change it in April if they only got this letter - did HMRC say they are going to send them letter for now as well?

RASTIE_2

Any wrote: »

It will correct itself IF your employer changes your tax code ASAP... As your tax code notice says "tax code for 2010-11" they will only change it in April if they only got this letter - did HMRC say they are going to send them letter for now as well?

Must of done as they said the nex code should be on my next payslip