Tax code correct or have I underpaid??

tugrin

Hi My tax code has been 655L foe the past 3 years. I am a single person no dependents on £35477 a year. This salary started from September and for the previous 2 years was £34500. My fear is that my tax code is wrong and that I might suddenly get hit with a bill which being on a DMP with the Credit Counselling Serviec I certainly wont be able to afford. The ironic thing is initially I came on the saving tax forum to see if I was OVERpaying now I'm just scared!
Is there a way of checking without dropping myself in it???

professionalaccountant

You could reperfrom your tax calcualtions for the last few years and check to see how much you should have paid and how much you have actually paid. Providing you have your year end P60s to hand it is a relatively easy calculation to do. Your tax code doesn't seem to be the 'standard' which suggests items have been coded out by HM Revenue & Customs. Remember to account for these in your calculations.

CLAPTON

a standard code for this year is 647L

yours is slightly higher at 655L ... why us this? do you have a uniform or some spend that tax ia allowed
do you have anotice of coding?

If the code is incorrect the difference in tax will be (6555-6475) x 20% = 80 x 20% = £16 per annum.
I guess even on a DMP that would be affordable

tugrin

Thanks to you both for helpful advice. My daughter is now 21 I wonder if they have been making an allowance for a single parent - I did stop getting Child benefit and tax credits at the right time BUT it is the only thing I can think of as I dont have any thing other than a bog standard job for a single person. Will get all my P60s out and do the calcs and of course you are right, if its only out by that tiny amount, then even profligate me can manage that!!

CLAPTON

tugrin wrote: »

Thanks to you both for helpful advice. My daughter is now 21 I wonder if they have been making an allowance for a single parent - I did stop getting Child benefit and tax credits at the right time BUT it is the only thing I can think of as I dont have any thing other than a bog standard job for a single person. Will get all my P60s out and do the calcs and of course you are right, if its only out by that tiny amount, then even profligate me can manage that!!

if you haven't changed jobs and
if the taxcode on the P60 is correct then its extremely unlikely that the tax will be wrong

the issue here is why you have a 655L code.. did you not receive a notice of coding from HMRC?