Tax code BR?? Excuse me??

Nine_Lives

Have posted this elsewhere but figure i should ask here also:

I've a strange one here as all the ones i've had in the past have been ###letter. Example:

Right now i'm on tax code 653L
Last tax year i started on 548L & at the start of that September ('09) i moved to 609L
The one before (Apr 07) i started on 522L & moved to 527L at the end of that September

I wont go back any further, but there you go

I get a letter through yesterday which says my tax code for next month will be B]BR[/B.

I don't FULLY understand the codes so it was a bit odd to me as it's different.

Bit of googling just now &:

Other special tax codes

BR
This code is an abbreviation of "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. For one of the jobs or the pension you have a suffix code so that you receive your "tax-free pay"; in the other you must pay tax at 20% on all of the earnings. If you have two pensions, the state pension and an occupational pension, this code may be used to deduct tax from your occupational pension.

Your employer is also allowed to allocate this code for new employees in certain circumstances if HMRC has not yet provided an official tax code.

If you have this code, your employer is required to deduct tax at 20% from all of your earnings. You do not have any "tax-free pay".

Example: Your weekly earnings are £300. Your employer deducts £60 tax, i.e. 20% of £300.

1. Why am i on a "special" tax code?
2. I don't pay into any pension.
3. I don't have a second job




I don't know if it's possible, but i have had a lot of time off, so don't know if this is a factor.

Dec 2006 - Feb 2007 = 8 weeks
Sept 2007 - March 2008 = 26 weeks
November 2008 = 1 week
January 2009 - April 2009 = 14 weeks

All signed off with doctors notes, picking up SSP, but i can't see why THIS would be a factor.



Anyone able to explain as from what i'm reading, it sounds like i'm going to be paying more than i should??


EDIT: As i've been there for 12 years, i'm not a new employee either




**** I have just called the tax place (twice), and gone through the options 2>1>3. I then get told the advisors are busy & instead of being put on hold, i am told their opening & closing times & then the line goes dead.

fengirl_2

HMRC's new computer spewed out a lot of incorrect codes for next year and it looks as if this is one of those. Just ring your tax office and point out that this is wrong and get them to correct it. Having time off does not affect your code - HMRC wouldnt know that anyway.

missile

It looks like a mistake, unless you have underpaid in the past? The implication is that you have no tax free allowance and all of your income will be taxed at 20%.

I would write rather than phone. You might want to ask for an assessment too.

Nine_Lives

That's positive in a way i guess

Now the difficult part is getting in touch with them. I'd rather telephone as it's instant, or at least supposed to be.

Any tips on a decent time to call them at? I would've thought 10am would've been fine

Old_Wrinkly

K_P83,
some background info :
http://news.bbc.co.uk/1/hi/business/8485997.stm
http://news.bbc.co.uk/1/hi/business/8501037.stm
http://www.moneysavingexpert.com/news/family/2010/02/wrong-tax-codes-sent-by-hmrc-how-to-correct-the-error
http://forums.moneysavingexpert.com/showthread.html?t=2244201