New Tax Code

SallyUK

Hi All
I received my new tax codes through this morning for 2011- 2012 - it's changed from 495L and 152T respectively to 670L and 77T - does this mean I'm going to be worse or better off please? :question:

Sal

dori2o

SallyUK wrote: »

Hi All
I received my new tax codes through this morning for 2011- 2012 - it's changed from 495L and 152T respectively to 670L and 77T - does this mean I'm going to be worse or better off please? :question:

Sal

What incomes do you receive from each source?

jem16

SallyUK wrote: »

does this mean I'm going to be worse or better off please? :question:

Sal

You will be better off but mostly because the personal allowance is changing from £6475 to £7475.

If you add them up the first two tax codes came to 647 - i.e. £6475. The second two tax codes come to 747 - i.e. £7475.

chrisbur

You just need to make sure that each code will be fully used so for the 670L job you need to be earning at least £6710 next year and for the 77T you need to be earning £780. If there is any increase in the tax code in the budget that will go on the 670L code so earnings needed to fully use this code would then go up by that amount.

SallyUK

Thank you for the replies, that's really helpful.

The 670L is my main job, I earn about £5748 gross from that and the other job is just bank work, which I only do occasionally.

Sal
x

jem16

SallyUK wrote: »

The 670L is my main job, I earn about £5748 gross from that

That won't be good for you then. You will have approximately £1000 worth of unused personal allowance if it's left like that.

You would really be better off with a tax code of about 574L for your main job and a tax code of 173L for the 2nd job. How much do you think you earn on that 2nd job?

I suggest you phone HMRC and discuss this with them.

SallyUK

Hi Jem16

I only work the odd 3 hour shifts here and there with the bank job. Sometimes, I can get a few shifts which would mean approximately 15-21 hours per month and other times none at all..

For that job, my hourly rate is £6.97 per hour.

Sal
x

jem16 wrote: »

That won't be good for you then. You will have approximately £1000 worth of unused personal allowance if it's left like that.

You would really be better off with a tax code of about 574L for your main job and a tax code of 173L for the 2nd job. How much do you think you earn on that 2nd job?

I suggest you phone HMRC and discuss this with them.

BoGoF

The new HMRC computer system splits the allowances according to the most recent pay information held, which will be 2009-10.

What does your P60's for 09/10 show ?

HMRC's systems increase the pay on the P60 by 2.5% then allocates the allowances accordingly.