Tax Codes

Crash67

Im sure there has been alot bout this but after alot of reseaching my head is spinning.
Should everyone be on simler tax codes or can they differ as after a check i got this awfull feeling i may of underpaid for the last 6 or so years which worries me
any help tips or advice to help check im right would be great,
the worst thing is i cant find all my wage slips or P60s im hoping a quick chat with accounts tomorrow that prehaps they supply duplicates

Mikeyorks

There's a basic personal allowance anyone under 65 starts out with. That's £6475 this year and last ..... incrementally lower for the earlier 4 years.

You take off the last digit to get the Code Number ..... so 647 this year and last.

You may have slightly increased allowances (eg launder uniform) .... so it goes up a few digits. Or benefits from your employer or tax underpayments for an earlier year ..... which can reduce the Code considerably.

Nothing more specific I'm afraid - unless you want to wade through this :

http://www.hmrc.gov.uk/incometax/codes-basics.htm

Crash67

Well im 23 and have work with my current employer since leaving school at 17 my tax code this year is 662L and i pulled out a wage slip from 07/08 and its 537L
I will add i have no benifits or perks in my job no 2nd job no nothing
Which im fearing i either underpaid for at leat 3 years and even worse my whole time working for the company which is scarey in terms of how much i may owe, i guess the sensible thing to do is chat to my companys accounts and then ring HMRC

Mikeyorks

Your Codes appear to be consistently £150 above the basic allowance. Do you work in a trade where there's an agreed allowance for tools or similar?

To put it in perspective .... the £150 only represents (at 20%) £30 in tax per year. You would normally get a P2 (Coding Notice) each year for an 'offbeat' code? Should show why the extra.

Crash67

Well i do work in the motor trade but as a parts advisor, after confering with a few colleuges its appears they are on the more standard code of 647L

Mikeyorks

Can't explain it then. The £150 is a bit excessive for any sort of logo'ed clothes you need to wear / launder.

Check for a P2 (Coding Notice) .......... normally issued around Jan / Feb time .... or ring HMRC. For £30 per annum they will ignore any underpayment and just correct it from now

Crash67

Ok well i was going to chat to accounts and management at work to clarify the situation, as like u say its consistant. So i hope to answers tomorrow. Im just a bit worried as after making some poor decsions a couple of year ago ive just manged to get debt free and this just seems like a spanner in the works lol.
Il be in touch with the results (good results i hope)