Tax Code Change - Help, Being Paid Less!

MissCellaneous

Hi, I wonder if anyone could help me.

I just got paid (28 Sept) and noticed that it's nearly £50 less than in previous months. Upon closer inspection, my tax code has changed from 747L to 699L.

Does anyone know why this might be? As far as I'm aware nothing's changed. Will I be paid less from now on if this is a 'normal' tax code change?

Thanks a lot in advance, that £50 is a lot to lose unexpectedly.

WestonDave

It will be ongoing however it won't normally be as bad as that - when it changes it effectively backdates to the beginning of the tax year so you've lost 6 months worth of allowances in one go. Next month you should be £8ish short of what you were being paid (8 x 6 months = £48 hence the nearly £50 in September which is tax month 6).

Code has been restricted for something - probably a benefit in kind like private medical care etc. If you phone your local tax enquiry office they will tell you why they've restricted it and explain how to correct it if they have it wrong.

System

Did you not receive a new coding notice from HMRC explaining how your tax code is made up?

MissCellaneous

Ahh that makes sense! Yes I do receive the healthcare as a benefit in kind, I do receive statements regarding that but haven't had anything from HMRC relating to the code, unless I'm being daft. I'm glad it won't be quite so bad after this month, gave me a shock!

I will double check all this though as you say, to ensure all's as it should be. Thank you

theblessedone

If you haven't received a coding notice from the HMRC, I would ring them and double check. Make sure you get your PAYE Reference from you employers first. It could be that your employer has made an error and changed your record, instead of someone elses.

Employers are supposed to be inputting these electronically now, straight from the HMRC's servers but, a lot are still manually inputting them.

If it has indeed changed, do you receive any kind of company benefit? I.e. Private Healthcare or a Company Car Allowance? As these things may be free to you, but you still need to pay the tax on these benefits, and the HMRC normally change Tax Codes to affect this, round about this time of year.