Tax code confusion

pwally2

Sorry if this has been asked before but am very confused about my tax for this year and my tax code.

Over the year I seem to have a different tax code every month!!!!

eg June was K531 yet Nov was K212 M1

I have spoken to tje tax office and received a new coding notice for the whole of 2009/2010 tax year of 363L.

Does anyone know what these different tax codes mean. Also using tax calculator on here it seems I have overpaid tax throughout the year. Will this money be paid back through the PAYE system9 wouldbe handy to have it paid back this month!!! :j) or will I have to fill out a tax return to claim it back in April.

For information purposes salary is £25625 per yr and i have a company car (ford focus diesel car).

Any help or comments would be appreciated.

Thanks

fengirl_2

The two K codes indicate that you had minus allowances, due to the benefit in kind on the car. The new code has reduced the benefit in kind on the car and you need to satisfy yourself that you are now being taxed at the correct rate for the car. Your employer can supply this information.
When the new code is operated, you will receive a refund through your wages.
The rate of your salary has nothing to do with your code number.

zygurat789

You should also have received a communication from HMRC every time the code changed. This communication would have explained how your tax code had been arrived at. It is up to you to read these and check them and, if they are
wrong, to reply to HMRC so that they can tax you correctly.
Why didn't this happen?

pwally2

FRom speaking to the Tax office the problems have arisen due to me changing the type of vehicle i use on a regular basis and they hand me in 2 cars not 1 as my employer only tells them once a year about the car I have. I was never told this and now I ring the tax office every time i change my car so they have updated information and now check my taxcode very carefully. Have been self employed for 10 yrs so never had this sort of problem!!!

John_Pierpoint

zygurat789 wrote: »

You should also have received a communication from HMRC every time the code changed. This communication would have explained how your tax code had been arrived at. It is up to you to read these and check them and, if they are
wrong, to reply to HMRC so that they can tax you correctly.
Why didn't this happen?

The notice of coding does not seem to explain anymore - the latest weird one arriving for my wife simply says "on the information supplied" and then gives a retired teacher some sort of use of own car allowance - she last had one of those about 15 years ago.

zygurat789

John_Pierpoint wrote: »

The notice of coding does not seem to explain anymore - the lates weird one arriving for my wife simply says "on the information supplied" and then gives a retired teacher some sort of use of own car allowance - she last had one of those about 15 years ago.

So you read it and checked it and set them right which is what you should do. PAYE was the biggest dumbing down job ever done, I think we would all be astonished at the overpayments that have happened because people don't bother to check their tax codes

pwally2

I would tend to agree zygurat was so much easier to pay an accountant to do it all for me whilst self employed!!!! Now have to check what I feel should be done by HMRC!!!!!

oh well onwards and upwards be interesting to see my wage slip this month and if i get a refund!!! Fingers crossed!!!

Mikeyorks

pwally2 wrote: »

if i get a refund!!!

As long as the 363L does not have a '1' (or Month 1) afer it - and provided your employer has a copy of the new code notification and brings it into use for Feb pay ...... then there will be a refund.

For a full year the difference between 212K and 363L will reduce your tax liability by around £1150. And the refund will be amplified by the fact you were paying even more during June to Nov.