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Incorrect Tax Code 2012/2013
iscrimger
Posts: 222 Forumite
in Cutting tax
As I understand the new personal allowance tax code for this year is 810L?
I've now had 2 salary payments which both have different tax codes and neither are 810L.
I receive a company benefit to the value of £462.
Therefore I would have assumed my tax code would be 764L? This is what my code was 2011/2012 and for my first salary payment this financial year.
My latest payslip shows my tax code as 722L. I called HMRC and they told me I have a benefit to the value of £462 and an underpayment (which I've not had any letter about, not a big deal) of £83.42. They also told me they informed my employer that my tax code should now be 722L. This doesn't seem to add up?
Can anyone advise?
By my calculation my tax allowance should be around £7553?
:S
(I've not had a P60 yet which might explain the underpayment)
I've now had 2 salary payments which both have different tax codes and neither are 810L.
I receive a company benefit to the value of £462.
Therefore I would have assumed my tax code would be 764L? This is what my code was 2011/2012 and for my first salary payment this financial year.
My latest payslip shows my tax code as 722L. I called HMRC and they told me I have a benefit to the value of £462 and an underpayment (which I've not had any letter about, not a big deal) of £83.42. They also told me they informed my employer that my tax code should now be 722L. This doesn't seem to add up?
Can anyone advise?
By my calculation my tax allowance should be around £7553?
:S
(I've not had a P60 yet which might explain the underpayment)
0
Comments
-
normal tax code is 810L i.e. tax allowance of 8105
Benefit in Kind is 462
so allowance now 8105-462= 7643
HMRC need to recover underpayment of 83.42 so they need to deduce your tax allowance by 83.42/0.2 = 415
so your new allowance is 7228 i.e. a tax code of 722L
you are confusing how BIK are dealt with and how the need to reclain a sum of money is handled0 -
my tax code would be 764L? This is what my code was 2011/2012
Rather curious. The basic Code for 11/12 was 747L. Why would you have greater allowances? And, in particular, if the benefit was also in existence 11/12?
Do you check your P2 (Coding Notices)? Which you should get if you have a non basic code ..... and details what is added / removed.If you want to test the depth of the water .........don't use both feet !0 -
Ah I mis-calculated my underpayment. Although I do wish HMRC had have notified me in advance.
As for the greater allowance, unknown. I haven't received any notices regarding tax or benefits in years.
I know my benefits have changed over the past few years, and I've got a further tax code adjustment to come.0 -
the way tax works in the UK is that it is the tax payers responsibility to pay the correct tax.
presumbly you get P11d each year which show you benefits in kind?0
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