help with tax code 647L m1

wrighty0__3

hi,

i was made redundant in november 2009, i didnt do any work from november untill march, then i had 7 weeks temporay contract direct to a company, after that finished i had approximately 3 weeks back on JSA i then started work for an agency where i did 5 weeks before finding a permanent job. Since starting my permanent job in the middle of july i have recieved 3 and 1/2 months wages, and all have my tax code as 647l M1 i have read the direct gov website regarding this code. Am i paying emergency tax? and what do i do to sort this?

weezl74

wrighty0__3 wrote: »

hi,

i was made redundant in november 2009, i didnt do any work from november untill march, then i had 7 weeks temporay contract direct to a company, after that finished i had approximately 3 weeks back on JSA i then started work for an agency where i did 5 weeks before finding a permanent job. Since starting my permanent job in the middle of july i have recieved 3 and 1/2 months wages, and all have my tax code as 647l M1 i have read the direct gov website regarding this code. Am i paying emergency tax? and what do i do to sort this?

Hi wrighty,

this is an emergency tax code.

re what to do to sort it, you would need to wait until the tax office have generated your correct code (having received all the information).

Since the current situation is actually better for you in terms of what you are receiving, I wouldn't rush it, but it would be advisable to have monies saved for when your income drops and you need to overpay for a while on your correct code.

edited to add, the overpayment should not be huge, it will be to redress the 7 weeks of your personal allowance you have already been granted.

second edit: I make this around £175, but someone else cleverer than me will be along shortly to check figures!

third edit, I have assumed here that you are a 20% tax payer, rather than in the 40 or 50% bracket

Gertie_Walker

You are probably paying too much tax rather than too little. You need to ring your tax office and ask them to issue a cumulative code which includes your previous pay and tax and JSA so that your employer can make your refund.

chris.0510

I have now been paying tax on the code 647L M1 for a year now and have just received a new tax code only for that to be the same am i paying the correct tax or not

dzug1

chris.0510 wrote: »

I have now been paying tax on the code 647L M1 for a year now and have just received a new tax code only for that to be the same am i paying the correct tax or not

You probably were paying the right amount of tax or nearly so if your pay didn't vary much in the year

You will definitely be paying too much tax this year - the allowance has increased, your tax code hasn't.