Change of tax code

cnoelj

Hope this is not a silly question.

I have had a letter notifying me that my tax code is to change from 747L to 757L

Just wondering whether that means that they have identified that I have been on the wrong code and therefore have been paying the wrong tax.

I would appreciate any help. Thanks.

BoGoF

The notice of coding should show what the reduction is for. Could be many things, an employment benefit, an underpayment from a previous year.

cnoelj

BoGoF wrote: »

The notice of coding should show what the reduction is for. Could be many things, an employment benefit, an underpayment from a previous year.

Thank you. It was far from clear from the letter but it would seem that the Union has negotiated clothing expenses which I will be getting an allowance for. I will have to double check at work. Thanks

CLAPTON

well yes, if you use a uniform or clothing only used at work (maybe safety stuff) then they may give you a cleaning allowance or cost of the cloths

what sort of work do you do?

jem16

BoGoF wrote: »

The notice of coding should show what the reduction is for. Could be many things, an employment benefit, an underpayment from a previous year.

If it's going from 747L to 757L it's an allowance and not a reduction.

Basically OP you have been give an allowance of £100 - possibly as Clapton suggests for work clothing.

auntyboopy

yes i have just contacted hmrc as i have to provide and launder/replace my uniform i work in healthcare and this is you increased allowance of earnings before tax. If like me you use your own car for travelling within your job you can also claim a mileage allowance. this is calculated at 45 pence per mile, or if for example your employer gives you 20p per mile hmrc will make up the other 25p mile, that's a lot of money over the year if you travel like me.

you can make a claim now for up to the past 6 years or if the work is only within this tax year you will have to wait until april. They will refund you and set next years tax code accordingly presuming you will be doing the same work..... hope that helps :j

InsertWittyName

You only get tax relief on the difference between 20p and 45p, not the full difference!