Why does my tax code keep changing?

leo1975_2

Hi
Can somebody help me please?

My tax code has hanged numerous times in the last 2 years and im not sure why?

In Jan 08 my salary was £42,300 and I had £6,200 car allowance, my tax code was 484L. Since then, there has been the following changes:

May 08 - salary increase to 43,919, tax code changed to 543L
Oct 08 - same salary, tax code changed to 609L
Apr 09 - same salary, tax code changed to 653L
Oct 09 - same salary, tax code changed to 368L

There have been no other changes to my marital status or my personal allowances.

Please help !!

leo1975_2

sorry, "hanged numerous times" should be "changed numerous times" lol

fengirl_2

Your code number is affected by your circumstances, not your salary. You should have received notices of coding showing these changes. I imagine they are to do with your car benefit, but without seeing the actual form P2, I would only be guessing. You need to ask HMRC for copies of your coding notices so you can check them and query them with your tax office.

leo1975_2

Thanks for your help, my car allowance has remained the same throughout. I dont recall receiving notifications regrading changes, so will contact HMRC

Thanks again

suso

Looking at some of the codes, there hasn't been a car allowance. You seem to be on a slightly higher code than most people possibly due to some fixed rate expenses applicable to your job.

The codes changes can be roughly explained as follows.

May 2008 increase in code because of the budget and extra allowances awarded.
Oct 2008 10 % rate of tax abolished for earned income, code changed and extra allowances awarded.
April 2009 increase in code because of the budget, and extra allowances awarded.
Oct 2009 (this is a guess) HMRC receive your P11D for 2008-09 with the car benefit in it and change your code to reflect this.

Most of the codes are standard plus a £60.00 allowance for something.