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New tax code help

masscrazy
masscrazy Posts: 144 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
in Cutting tax
I just received notification that I am not on tax codek-160.

What does this mean?
«13

Comments

  • jem16
    jem16 Posts: 19,728 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    A k code is a negative tax code. It means that you have no tax-free personal allowance and also owe tax on an extra £1605.

    As to why you have this tax code, your P2 coding notice should tell you.
  • masscrazy
    masscrazy Posts: 144 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    jem16 wrote: »
    A k code is a negative tax code. It means that you have no tax-free personal allowance and also owe tax on an extra £1605.

    As to why you have this tax code, your P2 coding notice should tell you.

    No tax-free personal allowance? How much would it have been?

    Does this go from my salary or can I pay another way?
  • jem16
    jem16 Posts: 19,728 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    masscrazy wrote: »
    Does this go from my salary or can I pay another way?

    The tax paid will come from your salary.

    You would need to ask HMRC if you can pay a different way. What way did you have in mind?
    No tax-free personal allowance? How much would it have been?

    For this year £7475 and next year £8105.
  • masscrazy
    masscrazy Posts: 144 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    No tax-free personal allowance? How much would it have been?

    Cheque maybe?
  • jem16
    jem16 Posts: 19,728 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    masscrazy wrote: »
    No tax-free personal allowance? How much would it have been?

    Answered in Post 4.
    Cheque maybe?

    A lump sum then? As I said contact HMRC.
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Why would you pay an underpayment directly - when you can pay it by interest free instalments over the whole of 2012-13?

    Tidy - but not sensible.
    If you want to test the depth of the water .........don't use both feet !
  • masscrazy
    masscrazy Posts: 144 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    jem16 wrote: »
    The tax paid will come from your salary.

    You would need to ask HMRC if you can pay a different way. What way did you have in mind?



    For this year £7475 and next year £8105.

    So now being taxed on my FULL salary??
  • jem16
    jem16 Posts: 19,728 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    masscrazy wrote: »
    So now being taxed on my FULL salary??

    Your full salary plus an extra £1605.
  • masscrazy
    masscrazy Posts: 144 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    jem16 wrote: »
    Your full salary plus an extra £1605.

    Haha its gets worse :rotfl:

    So im being taxed 20% on 23.6k. But it would have been only 20% on 12K?
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    edited 8 February 2012 at 11:26PM
    No, if your salary is 22K you will now pay 20% on 23.6K but on a standard tax code would have paid 20% on 14.5K.

    Edit: To expand a bit more on this, previously you would have paid tax of £2905, now you will pay £4720.

    So do you want to share with us why they have changed your tax code to K160?
This discussion has been closed.
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