HMRC mistake with my tax code

TheCrimsonAvenger

My tax code has always ended with a L but this year HMRC in their wisdom sent me two letters once with an emergency tax code (BR) which is plainly wrong, then another with a K prefix (K1141). I have taxable benefits this year (BUPA and Cycle to Work as well as Dental Insurance).

They've woked it out:

Personal Allowance £6475
Adjustments to basic rate band £17901
tax is due on -£11426

I earn £42,000 so would have thought this took me below the threshold for 40%

fengirl_2

BR is basic rate, not emergency code.
Both codes are obviously wrong (unless your benefits in kind add up to 17901), so you need to ring the tax office and get it corrected.

dawn_of_the_replicants

The deduction for your BIK (benifits in kind) seems very large. Call your tax office now, hopefully they can amend this code(if necessary before the end of March then you get any correction due in your pay.) Otherwise it can take a fair few months after tax year end to get any refund repaid.

Call Monday, or email now, any delay could be a real pain at this time of year.

CLAPTON

TheCrimsonAvenger wrote: »

My tax code has always ended with a L but this year HMRC in their wisdom sent me two letters once with an emergency tax code (BR) which is plainly wrong, then another with a K prefix (K1141). I have taxable benefits this year (BUPA and Cycle to Work as well as Dental Insurance).

They've woked it out:

Personal Allowance £6475
Adjustments to basic rate band £17901
tax is due on -£11426

I earn £42,000 so would have thought this took me below the threshold for 40%

just to clarify ; they are taxing you on 42,000 + 11426 = 53,426 so you are paying 20% on the first 37,400 and 40% on the remainder i.e. 40% on 16,026

TheCrimsonAvenger

Many thanks for your help, am I right in thinking then that even with BUPA, Cycle to Work and Dental insurance benefits with my salary that I should expect a L code rather than K?

Mikeyorks

You appear to be part of this wider problem :-

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

suso

I'm 99% certain that the problem is that your record has been duplicated, because of a discrepancy between either PAYE references or employee numbers.

Give them a call with your PAYE ref or confirmation of your works / staff / payroll number and they will resolve it.

You said you received two letters, did they mention the same employer on each letter, if they did its an issue with payroll numbers, if they mention different employers, then its an issue with employment records not being closed properley.

SuzieSue

TheCrimsonAvenger wrote: »

Many thanks for your help, am I right in thinking then that even with BUPA, Cycle to Work and Dental insurance benefits with my salary that I should expect a L code rather than K?

Yes, it would usually still be an L code. The Cycle to Work scheme isn't usually treated as a benefit in kind - it is usually treated as salary sacrifice.

TheCrimsonAvenger

Thanks for your help with my tax codes. I rang up expecting a row but they instantly reset my tax code to the usual one with the L suffix.

This has led me to suspect that my father had been over taxed though as he had a K tax code for a year when his only income was his salary which was taxed at source and his private pension. Surely he shouldn't have a K tax code? They told him at the tax office this was as he was over 65 which doesn't sound plausible at all.

zygurat789

TheCrimsonAvenger wrote: »

Thanks for your help with my tax codes. I rang up expecting a row but they instantly reset my tax code to the usual one with the L suffix.

This has led me to suspect that my father had been over taxed though as he had a K tax code for a year when his only income was his salary which was taxed at source and his private pension. Surely he shouldn't have a K tax code? They told him at the tax office this was as he was over 65 which doesn't sound plausible at all.

He has a private pension. What was the tax code on it?
Over 65. Did he draw a state pension?
Did he have any benefits ie car, health ins etc?

TheCrimsonAvenger

zygurat789 wrote: »

He has a private pension. What was the tax code on it?
Over 65. Did he draw a state pension?
Did he have any benefits ie car, health ins etc?

He did have a state pension, no benefits in kinds at all.

Thnk the private pension was K too.