Employment tax code

Grelsh

My friend who is a full time student with a part time job has been on the tax code of 647L for the rest of the year until this weekend when they opened their payslip and found it to have changed to 552L.

Her top line for the previous week was 133 with not much tax and national insurance finishing up with roughly £100 but this week her top line was 188 with the new tax code of 552L and she got taxed £101 and £10 of national insurance.

Looking at her payslip she has only earned just over 4k in this tax year and is nowhere near the tax threshold.

She has been working a few extra hours now that she is finished with uni for the semester but during the summer she did the same and was never taxed as badly as this before.

Why would the tax code have changed or is it more than likely a mistake?

Mikeyorks

Grelsh wrote: »

Why would the tax code have changed or is it more than likely a mistake?

Because £950 of allowances (£6475 down to £5525) has been restricted - for some reason (underpayment in a previous year .... some sort of taxable benefit provided by employer?)

S/he should have received a P2 Coding Notice showing the new code ...... and it will explain the restriction. If not received ...... contact the HMRC office d/w the employer?