Tax Code Query

shopndrop

I have just noticed that my tax code for the current tax year is 646L. I thought that the personal allowance is £6475 for this year, so my coding should be 647L? Is it worth querying or not?

jem16

shopndrop wrote: »

Is it worth querying or not?

Depends on whether you think the 20% tax on £10 is worth doing anything about or not.

shopndrop

Thanks for your reply. If that's all it is, then not worth bothering about. It was the same for the last couple of years, they seem to round the tax code down slightly each year.

Mikeyorks

There must be a reason for it - as they don't normally. But I'd struggle to think what 'benefit' you have that's only worth £10. 'Cos it's hardly worth having!

Don't you get a P2(Coding Notice) that tells you?

shopndrop

Mikeyorks wrote: »

There must be a reason for it - as they don't normally. But I'd struggle to think what 'benefit' you have that's only worth £10. 'Cos it's hardly worth having!

Don't you get a P2(Coding Notice) that tells you?

Have never had a coding notice. I am not aware of any "benefit" that I may be getting.

Mikeyorks

Very curious then. You can get a Code marginally above the basic 647 .... professional subscriptions or similar claimed. But it's unusual to get one so marginally below.
I'll opt for a 'data entry' error with your payroll people ..... otherwise I'm out of ideas!

chrismac1

This was Labour stealth tax number 1,045,782 I beleive....

jimmo

I agree with mikeyorks, the best guess seems to be that there was a data error some time in the past. Believe it or not, (20% tax on £10) £2 is the maximum you are overpaying each year. However, as things stand, you are likely to overpay a little bit every year for the rest of your life.
If I were you I would send HMRC one letter asking them to correct it but I certainly wouldn't phone on their 0845 number or bother sending reminders.

shopndrop

Just rung Inland Revenue to query it and they said I claimed for small mileage allowance back in 2006, it was a 1 off, and since then my code has been amended as they assumed I was still doing same mileage. They will amend to the correct code for future. Thanks for your help all.

Mikeyorks

shopndrop wrote: »

.....and they said I claimed for small mileage allowance back in 2006,.

Memories like elephants!

shopndrop

Mikeyorks wrote: »

Memories like elephants!

Just a pity I don't have one!