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quick tax code question
KaratePigeon
Posts: 295 Forumite
in Cutting tax
Hello,
I have no idea about how tax codes work but on my payslip it always says mine is 640L. My colleagues who earn similar amounts all seem to be on 647L. I've googled it and it seems 647L is the normal tax code, could mine be wrong? How is it calculated?
Thanks
I have no idea about how tax codes work but on my payslip it always says mine is 640L. My colleagues who earn similar amounts all seem to be on 647L. I've googled it and it seems 647L is the normal tax code, could mine be wrong? How is it calculated?
Thanks
0
Comments
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647L means tax-free allowances of 6,475 in the "let's baffle folk as much as poss" world of HMRC. So 640L means 6,405 of allowances and implies £70 of benefits in kind, underpaid tax etc. This should be shown clearly on your notice of coding, which should give a separate line item for the 70.Hideous Muddles from Right Charlies0
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Ah thankyou so much for explaining
I think it's because of the healthcare plan I get through work then, that's meant to be worth £70 a year to me.0
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