Tax code changed

book12

When I'm doing temp work, my tax code is W1647L for the last few months. I just realised that my tax code is now 647L.

Finally, they changed it. Does that also mean I get a rebate with my wages?

fengirl_2

You are not longer on the week 1 basis as this is the start of a new tax year so your employer knows what you have earned this year, so no need for the emergency code.
To recalim tax for last year, you will need to send your P60 to your tax office giving details of all your employments in the year and asking for a refund.

kiwi07

fengirl wrote: »

You are not longer on the week 1 basis as this is the start of a new tax year so your employer knows what you have earned this year, so no need for the emergency code.
To recalim tax for last year, you will need to send your P60 to your tax office giving details of all your employments in the year and asking for a refund.

My tax code for this financial year is 647L, I am on weekly pay. My employer deducts tax. Do I have to pay tax under this tax code or not until its reaches £6470?

moremoneythansense

Hiya,
You don't get tax free income until your income is above 6470 - you get allowances of 6475 in the year - which means each week you can earn £125 every week without paying tax.

Any amount you earn above this is taxed at 20% - if you are on high income you could then also be taxed at 40%.
Every week, your income will be added to the previous week/income in this tax year and you will be taxed on the excess above 2 x £125 or 3 x £125
e.g your first weeks income £150 - taxed on £25 @ 20% = £5.00
2nd weeks income £150 - taxed on amount over £250 = £50 @ 20% = £10 (£5 already deducted in week 1 so in week 2 another £5 deducted)
However, if 3rd week income was only £100 then total income at week 3 is £350 but allowances are £375 therefore no tax would be due and you would get a refund of the £10 you had paid in weeks 1 and 2.

HTH