tax code has been changed dramatically

scootw1

Hi all

I have just had a letter informing me of my new tax code for 2012-2013. Last year it was 747L and this year is has changed to K381 which means that there have been deductions of £11928 off the tax free allowance of £8105. How on eartch could this come about?? My circumstances have not changed in any way whatsoever and my tax code was the same last year as a couple of my colleagues. Does this mean they will have the same letter? If not, why would there be such a big difference? By my reckoning it will mean £40 odd a week extra tax from April (unless I'm doing something wrong with the calc) which I really cannot afford. I know there was big debacle last year with the tax office getting things wrong but I haven't heard of anything this year. Any advice onthis would be greatly appreciated as I am worried about this now.

BoGoF

It would be helpful if you could give us a breakdown of the code - allowances and dedcutions from the notice of coding.

scootw1

BoGoF wrote: »

It would be helpful if you could give us a breakdown of the code - allowances and dedcutions from the notice of coding.

Personal allowance£8105
adjustment to tax rate bands -£11928
tax is due on -£3823

Is this what you required?

have I got the bit right about the extra tax owed? 20% of 11928?

BoGoF

That would suggest you have two jobs, the total of which take you into the higher rate tax bracket but because the 2nd job is taxed at basic rate an adjustment needs to be made at your main source code.

If you don't have 2 jobs get on the phone to HMRC and get it corrected.

Sambucus_Nigra

Have you called them to find out why it has changed?

scootw1

Sambucus_Nigra wrote: »

Have you called them to find out why it has changed?

I tried this evening but no answer. Wanted to get some info off you guys so I'm armed when I do get through.
As I said my circumstances have not changed. I only have, and have only had since college, one job.

I did have a lease car about 10 years ago which they were still charging me tax for until about 5 years ago and then I had a tax rebate of about £600 which was taken by the OR in bankruptcy but I would not have thought this would have caused this would it?

BoGoF

Has your employer been taken over or changed PAYE reference number that you know of?

scootw1

Nope. Same employer for years. Dunno about the PAYE reference number.

scootw1

Wouldn't the Coding Notice have to explain there was an underpayment from a previous year if that was the fault?

BoGoF

That's not the problem though, for some reason HMRC think you have another source of income.

Was there nothing else in 2010-11 income wise?

Sambucus_Nigra

I suspect an error which can be sorted over the phone so don't lose any sleep until you have spoken to them.

It looks to me like a company car benefit...