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Change in tax coide

Hi,

Recently got a £2k pay rise and calculated my tax against my gross December salary and found that it just 16.2%.. Silly question, but shouldn't it be 20%?

My tax code is 634L and the tax period (whatever that is) is 9.

Any ideas? Not complaining, just trying to work it all out..
regards,

Z

Comments

  • Any
    Any Posts: 7,959 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Possibly because you are not taking into account personal allowance...

    Your tax code 634L is letting you know that you can earn £6340 per tax year tax free. Which for employed monthly employee means £528 per month tax free.

    By the way ordinary person gets tax code 747L currently (£7475 tax free). You must have some kind of a benefit that is taxable to have 634L..? Medical insurance... car...
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