40 and Foolish!

NewLeaf_2

Dot, I wish I had children or grand children to cuddle. Give her an extra one for me. xx

grannyx2

NewLeaf wrote: »

Dot, I wish I had children or grand children to cuddle. Give her an extra one for me. xx

They can have their downsides too, hence my awful bug this week. Seriously though I wouldn't be without them for the world.

How are you this evening NL my dear x?

Piquant_2

NewLeaf wrote: »

Dot, I wish I had children or grand children to cuddle. Give her an extra one for me. xx

:eek: I'm afraid I don't:rotfl: I'm hoping all my children have puppies or kittens:rotfl:

I can't help with THEM, sorry I don't know enough to be useful, but the separate bank account sounds like a very good idea to me.

NewLeaf_2

Morning everyone ... The sun is out here which is amazing and makes me feel brighter.

The post brought news from "THEM" they are changing my tax code to 747L until April 2013 and then from April 2013 I will be on a K code K848. Now that I have an accountant I will ask him to check it.

We have had an invitation to go to a burn's night party tonight, I don't feel like going but I should just to drag myself out of my rut for awhile. It's with our guy couple friends, one drinks way too much and that is another reason I am dreading it. Hopefully he will be on best behaviour and it won't be too much of an issue x

NewLeaf_2

I have got 2 items listed on eBay so far. About 100 more to go x

fredandwilma

NewLeaf wrote: »

The post brought news from "THEM" they are changing my tax code to 747L until April 2013 and then from April 2013 I will be on a K code K848. Now that I have an accountant I will ask him to check it.

You are on K code because you owe income tax from a previous year?




How the 'K code' works

If your deductions (untaxed income on which tax is still due) are more than your allowances you'll be given a K code, to ensure you pay tax on the excess. Whereas with other tax codes the number indicates the amount of income you can have tax-free, the number in a K code multiplied by ten broadly indicates how much must be added to your taxable income to take account of the excess untaxed income you received. The tax deducted for each pay period cannot be more than half of your gross pay or pension for that period. If more tax is due you will pay it at a later date.
You might see a K code used if you have:

• Company benefits
• state benefits
• tax to pay back from an earlier tax year

When a K code is operated, your tax deduction for each pay period cannot be more than half of your gross pay or pension. Your employer or pension provider restricts the amount of tax deducted using a K code to make sure that you retain a certain amount of take home pay or pension. If more tax is due it will be collected at a later date.




K code example

K497 means:

• your untaxed income was approximately £4,970 greater than your taxable income
• as a result, approximately £4,970 must be added to your total taxable income to ensure the right amount of tax is collected
  (The actual calculation is more complex and of course precise - and ensures that the exactly right amount is added to your taxable income.)

The way I see it, you will be paying at least some of the tax owed, out of your monthly wage, whether you like it or not? ( i.e. they are going to take it back from source,) so expect your net income to decrease, after April 2013?





Yowch............

NewLeaf_2

I paid off my 2011 tax to £0 last week. I wonder if they still think I have the fuel card?

Fred and Wilma I have private health which is £848 on my P-11D form. Thanks for explaining the K code. Also I am paying £85 a week to "them" so I don't know why they would take it out of my pay as well.

It would be great if the whole thing was more transparent in their letters

fredandwilma

And / Or benefits in kind then?


If your code has been adjusted and you do not know why, you should contact HMRC to check the tax code.

K codes

K codes are different from all other codes, in that they tell the employer to use a negative tax free allowance. If your code is adjusted but you do not have enough tax free personal allowance to cover all your additional untaxed income then you will be issued with a K code. Where other codes show an amount of tax free pay, K codes show an amount of additional income to be added to your pay when calculating the tax to be taken. A ‘K’ code means that the employment or pension is being used to pay tax due on other income as well. It is essential to check K codes individually as they usually result from a number of adjustments to your personal allowance
For example, your employer provides you with various benefits in kind £10,000. This is £1,895 more than your tax free personal allowance of £8,105. If HMRC issue you with a K189 tax code, then you will be taxed on an extra £1,895 of salary which you don’t actually receive. This is done to prevent the need for a tax bill for the untaxed income at the end of the tax year.
Unlike the other codes (where the letter is at the end of the code), the ‘K’ in the K code is placed in front of the numbers. This helps the employer easily identify this special type of code.










The K848 means you will be taxed on an additional £8480 income pa, for tax year 2013 - 2014, if they think you are receiving " benefits in kind " which is more than your personal allowance? ( as you've obviously underpaid tax in the previous tax years?) You will still also have to pay back what you already owe them?





Note also, THEM expect you to check your tax code when you receive it, if you don't understand the code, you MUST contact the tax office for an explanantion. It's your responsibilty to ring THEM and find out exactly what is happening, as much as you don't want to. I would ring them first thing on monday morning, if it were me.


I'd say also, maybe take advice from a tax specialist / body, if you are none the wiser, and those who are acting in your interest, won't charge you for the the (dis) pleasure.


You can't sit on it.


You HAVE to sort it.


There is only one way to find out what is happening and why, and you'll just have to do it.


Good luck.

NewLeaf_2

Thanks F&W I will contact THEM and my accountant on Monday x

fredandwilma

Good on ya


I'd say go to the tax board, but income tax can be a minefield, even for the initiated, ( that's my personal view.)

There's only so much advice you can give, without full facts.