Tax Codes

wyattr

I have been working for my employer for nearly 4 years now and just recently my tax code has changed to 562L1, can anybody explain to me in simple English why this has happened? I have rang my tax office and they said to speak to my employer, my employer says to speak to the tax office, you can see where this going can't you?

PLEASE HELP:wall:

fengirl_2

I dont think the tax office is being v helpful here. First of all, have you received a notice of coding from the tax office showing this code? If so, it should show how the code is arrived at. If you dont understand, then you need to ask the tax office to explain.
However, if your employer has just randomly altered your code, they cannot do this. They can only alter your code on instructions from the tax office.
If you havn't received a notice of coding, ask your employer to show you the notification from the tax office where it shows this cange of code. Then ring the tax office and ask them to explain why the change. If your employer cannot show you the change of code, then challenge him to say why he has changed it without authority.

Newbiesw

It looks like they have found that you either have a taxable benefit £850 to pay tax on or you owe them £170.
They have reduced your code so you pay this extra tax.
In their generosity, they have asked your employer to apply it on a week one basis (the 1) which means it will not be backdated to the beginning of the tax year and all arrears collected immediately but will be paid off over the year from the week that the new code was applied.
As long as your employer has applied the code to the correct person, it is the Tax Office who have the WHY/HOW? answers, not your employer.

Newbiesw