P60 Tax Code Question

liam456789

Apologies, I imagine this board has lots of these questions at the moment!

Just received my P60 for the 2010/11 tax year an am a bit confused. I had earnings of £39,885 from one employer who I've been employed with for a few years. I don't have a second job, I'm not in receipt of any tax credits, benefits, other credits or anything else like that. No company car, although I do claim mileage and expenses through work (but presume this is all handled on my P11d?).

I do rent out a flat and have done for years, but I fill in a self-assessment for this and opt to pay the tax on the profit separately to my income from work, and have always opted for this. So I send HRMC a cheque for this tax in around September each year.

My tax code for the past year has been 523L, so my understanding is that I can earn £5,239 tax free. A quick google shows that the tax allowance for 2010/11 was £6,475.

So can anyone tell me what the reason could be for me having an allowance £1,326 less than the standard amount? I will probably ring my tax office on Monday, but just wondered whether any clever souls on here would have an idea.

BoGoF

You should have received a notice of coding last year showing how the code was made up. If you don't have this then you need to phone and ask, otherwise anything else is a guess. You should be able to phone today,

jem16

liam456789 wrote: »

So can anyone tell me what the reason could be for me having an allowance £1,326 less than the standard amount?

Your P2 coding notice should explain it to you. Other than that we can only hazard a guess - i.e company car, medical insurance etc.

I will probably ring my tax office on Monday, but just wondered whether any clever souls on here would have an idea.

If you don't have your coding notice then best to phone HMRC - they are open till 4pm I believe today.