tax code confusion, same tax code but different amounts

stolt

ok need some advice, dont want to bore anyone with a long story.

tax man wrote to me late last year and said i had underpaid so they changed my tax code, fair enough seems my emplier hadnt notified them of my medical insurance. they wrote to me last month and said they made a mistake and instead of £1800 underpaid its only £399 so they have changed my tax code again. last month my tax code was 169L and its the same this month however ive paid more tax this month than last, does it take a little while for the tax code to update or is a problem that i need to advise my employer. tbh the guy in accounts isnt very helpful and gets very defensive if you ask questions so i wanted to try to get my facts before being bambozzled by facts that he will give me.

how can the my monthly pay be the same, tax code be the same and yet i pay a £277 more tax?

thanks for looking/trying to help

dori2o

what was the tax code the month before last?

stolt

dori2o wrote: »

what was the tax code the month before last?

Hi, it was K37 the month before last.

Thanks for trying to help.

dzug1

Possibly:

Last month the 169 code was putting right the overpayment caused by K37

This month it's 'normal'

CLAPTON

in general, benefits in kind like medical insurance or company cars are only notified ti HMRC after year end (and you should get a P11d showing the benefits after year end too); so they do tend to be retrospective.

If the benefits in kind started in tax year 2010-11, the HMRC probably wouldn't know about these (unless you told them) until april/may 2011 so you would expect your taxcode for 2011-12 to change to reclaim the tax owing and to gather the tax due for the 2011-12 year.

for 2012-13 you would expect an adjustment for the previous year plus an the amount for the current year

best you check the BIK for each year against the tax collected.

to see exactly why your tax has changed for this year we really need to know a month by month account of your figures from april 2012

stolt

CLAPTON wrote: »

in general, benefits in kind like medical insurance or company cars are only notified ti HMRC after year end (and you should get a P11d showing the benefits after year end too); so they do tend to be retrospective.

If the benefits in kind started in tax year 2010-11, the HMRC probably wouldn't know about these (unless you told them) until april/may 2011 so you would expect your taxcode for 2011-12 to change to reclaim the tax owing and to gather the tax due for the 2011-12 year.

for 2012-13 you would expect an adjustment for the previous year plus an the amount for the current year

best you check the BIK for each year against the tax collected.

to see exactly why your tax has changed for this year we really need to know a month by month account of your figures from april 2012

hi thanks for getting back to me...


I have a several PAYE coding notices

one dated 28th march which states
''your new tax code for the year 6thapril 2012 to 5 april 2013 is K37 which replaces K270''

Another dated 17th July states
''your new tax code for the year 6thapril 2012 to 5 april 2013 is 169L which replaces K37''


and the latest dated September 13th states.
''your new tax code for the year 6thapril 2012 to 5 april 2013 is 514L which replaces 169L''

but my wages for last month and september show tax code 169L


thanks

dori2o

Ask your employer if they have received the new tax code issued 13/09. They may have received it but after the payroll run took place. In which case they will operate the code from your next payroll.

if they have not received it, you need to contact HMRC and ask them to reissue the code to your employer.

The reason why your tax changed from August to September is because in August your employers payroll system was adjusting the amount of tax due on your pay, based on what you had received between April and August.

in effect you received a refund of tax for the months of April -July where the code K37 was in operation.

In September, the tax deducted was representative of the normal monthly tax due for your salary on a code of 169L.

Once the new code of 514L is operated, you will again see for that first month, you will pay very little tax, or infact no tax at all.

Then the following month your tax will return to a level appropriate for your salary and a tax code of 514L.

stolt

dori2o wrote: »

Ask your employer if they have received the new tax code issued 13/09. They may have received it but after the payroll run took place. In which case they will operate the code from your next payroll.

if they have not received it, you need to contact HMRC and ask them to reissue the code to your employer.

The reason why your tax changed from August to September is because in August your employers payroll system was adjusting the amount of tax due on your pay, based on what you had received between April and August.

in effect you received a refund of tax for the months of April -July where the code K37 was in operation.

In September, the tax deducted was representative of the normal monthly tax due for your salary on a code of 169L.

Once the new code of 514L is operated, you will again see for that first month, you will pay very little tax, or infact no tax at all.

Then the following month your tax will return to a level appropriate for your salary and a tax code of 514L.

thankyou very much for the explanation, made perfect sense and will look forward to next months pay packet so i can see the difference.:)

thanks once again for taking the trouble to reply and help.
all the best