Paying more with tax code 634L

zudecke

Guys,

I just calculated using my tax code (634L) that I find on my statement and without it..

Basically when I don't enter the tax code, the monthly tax contribution is just over £20 less! Why am I paying this extra money with this tax code!?

Thanks,

Z

Emmzi

Because the standard tax code is 647L at the moment so something is reducing your personal allowance. Do you have your last coding notice to tell you what? Usually a prior year underpayment, or a benefit like company healthcare?

scheming_gypsy

The default tax is now 746L (i think)... can't remember the exact number but it has changed this financial year. so when you manually input a tax code you're telling it to start paying tax earlier.

zudecke

Yeah.. I have private health insurance unfortunately... How does that affect it?

Emmzi

it will be treated as extra income. your PD11 should have details of this, ask your HR dept for a copy

zudecke

Okay... Thanks for clearing that up..

I pay £355 for single private health insurance, get critical illness cover, income protection and life assurance...

Does that £20 discrepancy between what I'd take home monthly with the tax code vs. without it add up then?

chrisbur

zudecke wrote: »

Okay... Thanks for clearing that up..

I pay £355 for single private health insurance, get critical illness cover, income protection and life assurance...

Does that £20 discrepancy between what I'd take home monthly with the tax code vs. without it add up then?

This sounds like you are paying for your health cover, if this is the case, and your employer does not contribute then it is not this that is affecting your tax code. Your tax code would only be affected by something that your employer provides for you either free or at a reduced price.

You should have had a notice of coding which shows why your tax code varies if not ask your wages office if they know anything about it; failing this you will have to ask the tax office.