375L tax code confused?

Rainstar

Hi there,

I'm confused about my tax code and not getting very far with an explanation.

I graduated from university in July 2009 and this year, i gave up my part time uni job and with around earnings of 2,000 for this tax year, having paid no tax because its nowhere near the threshold.

In november i started a full time job with a salary of £15,500, and have just received my third pay packet. My tax code is 375L and i don't understand why i'm getting taxed so much. There may be a simple reason and i'd be happy to pay it if i understood the reason but i'm confused and not getting any closer to an answer.

I do have a private healthplan through my company, they pay 4.77 a month. When i spoke to the tax office they wouldnt help me unless i had a yearly total for the healthcare, i said wouldnt it be 57.24 if they pay 4.77 a month for it? but he said I must confirm it with my employer. I think he was just shirking me off which i wasnt happy about after 40minutes on hold.

So i guess my questions are...

Does anybody know why i would be getting a tax code of 375L?
How does the healthplan (company benefit) affect my tax code?

Thanks for listening

Mikeyorks

Rainstar wrote: »

1. Does anybody know why i would be getting a tax code of 375L?
2. How does the healthplan (company benefit) affect my tax code?

1. HMRC does! ...... and they usually communicate that to you via a P2 (Coding Notice). Does it not explain why there's some £2700 worth of personal allowances witheld? The norm is 'benefits in kind' (company car / healthcare) or an underpayment from a previous year.
2. If paid by the company it's a taxable 'benefit in kind' ..... so HMRC make a reservation from your personal allowance to collect the tax on it. But your employer should provide you (and HMRC) with a P11D showing the taxable benefit ..... which is why HMRC may have appeared loathe to discuss - as you should know it. But £4.77 a month isn't much .... you're normally talking at least 10x that? So they're either just covering for broken fingernails ......... or the insurers think you're gloriously fit!