tax code help please

money_maker_2

Hi all,

I am getting sooooo confused with tax codes lol. After reading some shocking stories on here about people having huge tax bills they need to pay, I started trying to work out if my tax code is correct.
Im in a muddle.
I've only been working a few years straight from school and tbh I havnt given a thought about how much tax I have been paying.... stupid I know.
The problem is I dont really know what I earn! On my payslip and my contract I get a basic salary... only about £15350- mon to fri.
I am contracted to work 2 saturdays a month at 1.5x ... sometimes I do more if and when required. This isnt included in my basic salary.
So on average I earn just over £1200 after tax each month.
On my payslip for the last 12 months I have been on tax code 653L.

Please can someone help me out to find out if this is correct?

Sorry if this seems really thick lol

thanks

jem16

money_maker wrote: »

On my payslip for the last 12 months I have been on tax code 653L.

Please can someone help me out to find out if this is correct?

You have an extra allowance of £60 - do you work somewhere with a uniform?

Sorry if this seems really thick lol

thanks

Not thick at all - at least you are making an attempt to find out about your tax code.

Everbody under 65 has a personal allowance of £6475 at the moment, rising to £7475 from April 6th. The £6475 becomes a tax code of 647L and the £7475 will be 747L. It doesn't matter what you earn - it will not change your tax code.

money_maker_2

Thanks for the reply and being so nice and helpful I work for a bank, so have a nasty uniform lol :P
Just looking back at my payslips for the year before I was on 647L so i dont know why its changed.

Mikeyorks

The extra £60 is not usually automatic ..... so you must have claimed it? It makes a difference of (£60 @ 20% = ) £12 in a full year. Did you get a small refund last year - when the Code changed?

The basic allowance rises from £6475 to £7475 wef 6th April. So expect your Code to be 753L from your first pay date in April.

money_maker_2

Sorry for the really later reply. I have been away for a while. I havnt claimed anything. TBH I never actaully noticed my code had changed. I know I should have realised. I have not had any refunds. To make things even more complicated for myself, I have handed my notice in and I'm starting a new job begining of May. The salary is much more easy to work out, as its just mon-fri on basic salary. No Overtime.
I get paid on 21st this month, so hopefully my payslip should say a new tax code of 753l. Should this code still be the same when I move jobs?
Sorry to sound really dense lol

KiKi

money_maker wrote: »

I get paid on 21st this month, so hopefully my payslip should say a new tax code of 753l. Should this code still be the same when I move jobs to £22k?
Sorry to sound really dense lol

If you're under 65, and have no company benefits, your tax-free allowance (the amount you can earn before you pay tax) is £7475. This is represented by the code 747L, and that's what your tax code at your new job should be unless there are company benefits / other claims involved.

The fact that your current one is 753L (ie, you can earn £7530 before you pay tax) means that your employer is probably giving you some additional benefit somewhere (perhaps a company pension which means you can pay less towards the second state pension?) or something that means you can pay very slightly less tax.

Your tax code for your new company should be £747L. If it's not, call HMRC and your HR department and find out why.

HTH
KiKi

money_maker_2

Little update a further questions....
I found out from HMRC that my old employer did give us an additional allowance for washing our own uniform.
My last pay from my old job was 19/05/11. I was on tax code 753L.
My first pay from new job was 20/05/11. I was on tax code OT M1. (p45 had not arrived to give to new employer yet)
My second pay from new job is (got payslip already) 20/06/11. I am now on tax code 753L again.
Can somebody explain why I am not on the basic 747L code?
My company only has 1 part time HR person at the moment and shes on holiday, so I cant ask her yet.
I thought that my code would change now I dont have a uniform and Im just on a normal basic salary. Confused!!!

notbritishgas

money_maker wrote: »

Little update a further questions....
I found out from HMRC that my old employer did give us an additional allowance for washing our own uniform.
My last pay from my old job was 19/05/11. I was on tax code 753L.
My first pay from new job was 20/05/11. I was on tax code OT M1. (p45 had not arrived to give to new employer yet)
My second pay from new job is (got payslip already) 20/06/11. I am now on tax code 753L again.
Can somebody explain why I am not on the basic 747L code?
My company only has 1 part time HR person at the moment and shes on holiday, so I cant ask her yet.
I thought that my code would change now I dont have a uniform and Im just on a normal basic salary. Confused!!!

I think you must tell HMRC that you no longer have a uniform to wash so no longer need the extra £60 allowance. A phone call should suffice.

dzug1

money_maker wrote: »

My second pay from new job is (got payslip already) 20/06/11. I am now on tax code 753L again.
Can somebody explain why I am not on the basic 747L code?

Because your P45 said 753L. Your new employer doesn't know - and has no right to know - why it is that and has no option but to apply it.

AirlieBird

money_maker wrote: »

My second pay from new job is (got payslip already) 20/06/11. I am now on tax code 753L again.
Can somebody explain why I am not on the basic 747L code?

Your tax code with HMRC will be 753L and that is the code they will have informed your new employer to use. HMRC won't know that you no longer need the uniform allowance any more unless you tell them. Call them explain you've changed jobs and don't require the uniform allowance and they will remove it from your tax code and inform your employer of your revised tax code.

money_maker_2

Thanks for the quick responses guys. I will call them on Monday and let them know