How to get a tax rebate inc Tax Code Checker

downshifter

Could anyone advise me please, I've tried the tax checker but don't understand the results. Have just been looking at this year for now, once I understand I'll go back. This year I have 3 jobs, one shows tax code as 124T, one BR and one 180T, I also have an nhs pension whose tax code is 342L. Am under 60. How would I go about checking if these are correct? Forgot to add I also have a zero hours contract whose code is BR, presumably this doesn;t make any difference, I've never actually done any work under this contract.

Up until this January I was also self employed and did a tax return each year, so I suppose that made sure that I was paying the correct amount, and will presumably have to do another return for 2010/11 which might also sort it all out, however I'd like to know now, particularly if I have to pay anything back in 2010/11.

Thanks

Mikeyorks

jem16 wrote: »

It's unlikely that tax codes going back years would be very wrong.

Sorry jem ...... but all the P800 threads on here don't really support that. As the majority of underpayments appear to surface from people with at least 2 income streams (2 x jobs or job + pension or multiple pensions) ...... and who have managed to 'get away' with full personal allowances against each.
For some reason they've been unlinked on the old PAYE system .... but the new one has converged them, hence lots of underpayments.

Hopefully this years reconciliation exercise will resolve most of them for good. But there will be another outburst if HMRC get round to automatically linking 'savings' interest into the PAYE system.

jem16

Mikeyorks wrote: »

Sorry jem ...... but all the P800 threads on here don't really support that. As the majority of underpayments appear to surface from people with at least 2 income streams (2 x jobs or job + pension or multiple pensions) ...... and who have managed to 'get away' with full personal allowances against each.
For some reason they've been unlinked on the old PAYE system .... but the new one has converged them, hence lots of underpayments.

I should have been clearer Mike - I was really referring to those people with one income stream and one tax code.

As you say the problems that have cropped up are with those who have two income streams and two tax codes.

Mikeyorks

downshifter wrote: »

This year I have 3 jobs, one shows tax code as 124T, one BR and one 180T, I also have an nhs pension whose tax code is 342L. Am under 60. How would I go about checking if these are correct?

The checker doesn't stand a chance with you! You need a personal accountant!

If you add up the allowances (124 + 180 + 342) you get to 646. Which is pretty close to the basic personal allowance Code of 647 ...... so you're pretty close?

Provided ..... you earn at least £1240 / £1800 and £3420 per annum, respectively, in those jobs ..... your tax should work out correctly to within a £ or so. And ..... the BR will also keep you straight provided your overall income from all jobs + interest etc does not exceed £43875 (the 40% threshold created by the £6475 personal allowance + the £37400 band for 20% tax)

downshifter

Mikeyorks wrote: »

The checker doesn't stand a chance with you! You need a personal accountant!

On that income?!!! I think not.

Mikeyorks wrote: »

If you add up the allowances (124 + 180 + 342) you get to 646. Which is pretty close to the basic personal allowance Code of 647 ...... so you're pretty close? Provided ..... you earn at least £1240 / £1800 and £3420 per annum, respectively, in those jobs ..... your tax should work out correctly to within a £ or so.

Thank you very much, makes sense now. In fact my income should work out less than those amounts

Mikeyorks wrote: »

And ..... the BR will also keep you straight provided your overall income from all jobs + interest etc does not exceed £43875 (the 40% threshold created by the £6475 personal allowance + the £37400 band for 20% tax)

Chance would be a fine thing, though in fact I no longer have those sorts of aspirations, hence the username!!

Thank you so much, really brilliantly helpful.

DS

Mikeyorks

downshifter wrote: »

Thank you so much, really brilliantly helpful.

Then I'll be even more helpful :-

In fact my income should work out less than those amounts

....... in which case you will almost certainly overpay tax. Someone (you / employers / HMRC?) have made a good job of allocating your allowance pro-rata between the jobs. But ....... if your income undershoots the allowance in any of the jobs (except BR) then you will have unused allowances at the year end. And will overpay. Unless you undershoot on all the jobs (any income on the BR job will then make you overpay)?

The good news is that HMRC will now do an annual reconciliation - so you should get any overpayment automatically.

downshifter

Mikeyorks wrote: »

Then I'll be even more helpful :-



....... in which case you will almost certainly overpay tax. Someone (you / employers / HMRC?) have made a good job of allocating your allowance pro-rata between the jobs. But ....... if your income undershoots the allowance in any of the jobs (except BR) then you will have unused allowances at the year end. And will overpay. Unless you undershoot on all the jobs (any income on the BR job will then make you overpay)?

The good news is that HMRC will now do an annual reconciliation - so you should get any overpayment automatically.

Not much I can say to that except for a great big YAY! And thank you a million times again.

DS

Lo-Lo

My husband had the code BR on his wages for three years when he earned just under £5000 in 2007-08, £3865 in 2008-09 and only £89.66 in 2009-10 (finished early in that year) - can't understand why he would have had BR on his job and certainly must have earned under the threshold each year, except for maybe paying tax on £1000ish in 2007-08?

I am baffled, don't really know if it's worth chasing. He didn't have a second job, is under 60, no benefits. It was sessional work for the Council. Any advice?

MummyOfTwo

def chase it lo-lo.... BR is 20% tax!

BIGFISH

Hi just a quick question not sure if anyone can help.
My tax code is 689T and has been for the past 3 to 4 years ( I am married with children if that makes any difference). Only have one job and no additional income and when I do the tax checker for 08-09 tax year on earning of £19700 it says
"The tax code you've input says your tax free allowance was £6890-£6899.
Based on ONLY the salary and age you've input your personal allowance would have been £6475"
It then says.
"There's a differnce of £415 between the tax free allowance suggested by age & salary, and the one from your tax code. Unless you have any other income or deductions it appears your tax code could be incorrect."
Does this meen I owe the tax man !!!
Thanks for any advice