Notice of tax code change

Jap2Uk

Today i recieved a letter from HMRC. They have changed my tax code to BR for this year. I do not understand what is going on. I have looked on the net and it says BR "Basic Rate". It is applied by HMRC to employees who are liable to pay income tax at the basic rate, i.e. 20%. You may be given this tax code if you have two jobs, or a pension in addition to your job.
I do not have a second job or pension and i have been in same employment for 6 years. So why the change now?. Also i cant afford to lose 20% of earnings every month.
So the question is what can i do?. I did notice something wrong with my NI before xmas but i thought that was sorted out.
Thanx in advance for any advice

Mikeyorks

Fully explained, I suspect, in this thread? :-

http://forums.moneysavingexpert.com/showthread.html?t=2244201

........... just contact HMRC by 'phone / letter and they will put you in the queue to fix it. The 'phone would be better if you can tolerate the potential hold in a queue?

Jap2Uk

Ok thanks for that. On hold 10 mins so not that long. Guy said new system and it had opened my previous job as current, and current job as a second job. He updated something so tax code will stay as before. Also as a side note got a £100 tax releief as i work in agriculture and have to buy and wash my own work wear. . so all is good. thanks.

Mikeyorks

Excellent. Good to see HMRC can readily fix the problems ........ they create!

Haven't got my 10-11 code yet ..... so it's useful to know the 'phone queue isn't too long at this time of night ..... when I have to ring.

sadpootle

I've had the same letter, saying my tax code will be BR from April 2010, as I am 'on Incapacity Benefit.' I haven't been on IB since January 2009! I rang HMRC and told them this; now wish I hadn't, as I seemed to have opened up a whole can or worms! My tax code for the last year (since I started my job after coming off IB) has been 427 L. I earn £15,190.00 per annum. My partner reckons I have been paying too much tax. Now it is being corrected to 647 L. I asked why my tax code has been 'lower' and was told it's because I have underpaid £400 in tax and they have been claiming it back from me by putting me on code 427 L. I was a bit peeved as a) they hadn't notified me of this underpayment and b) they reckon I underpaid because I claimed benefit at the same time as I was working (NOT true!) They now want my payroll department to send them my P45 to sort this out as they are claiming they never received it in the first place anyway!
What should I do?! I feel like giving HMRC my Payroll department phone number and just letting them thrash it out between them!:)