K code

NEIL77

Hi all i have just recieved a letter from revenue and customs telling me my tax code is k151 what does this mean. I work for the nhs as a nurse so my tax is paid every month through my employer how can i owe them money anybody know what this is ?

suso

A K code is when your deductions are greater than your personal allowance.

In the letter you received, it would list the deductions, common examples are Medical Insurance, Company Car, Underpayment of tax from a previous year.

What does it say on the letter about deductions.

NEIL77

there are no deductions on the letter all it says is this

personal allowance £6475

adjustment to basic rate band -£8003

tax is due on £1528

suso

Give them a phone call, they will have your employer listed twice.

There's a glitch with the system when if the employer has changed your payroll number its duplicating records (one employer lister under the old payroll number one under the new,)

It doesn't have to be a big change in payroll numbers just one digit difference would cause the problem.

If you can wait until after the Jan 31st Self Assessment deadline you'll get through a lot quicker on the phone, and they'll sort it out straight away, with plenty of time to spare before the end of the tax year.

cazlina

Hi i would agree and give them a call. I received a PAYE coding notice on friday with a K code and was very concerned as i also work for nhs and have checked all my P60 and paid all my tax. Was a two minute phone call and HMRC said it is a computer problem and will send a new coding notice out!!!

NEIL77

Thank you all !!!!!!

cazlina

Your welcome, hope yours gettin sorted out as easily and quickly as mine

Tarasam

Sounds like a basic rate restriction has been put in your code as if you have two sources of income.
There are lots of instances at the mo with codes for the coming tax year due to the new computer system that was installed in the summer, please call HMRC and get us to sort it out for you, it will be corrected instantly.
If your code notice is for 10/11 tax year and you are able to wait to contact unitl mid Feb I would suggest you wait as HMRC have at least 250 calls in the queue at any one time due to the nearing self assessment deadline. These codes have NOT YET gone to employers / pension providers.