Can anyone explain this Tax Code?

cadenza82

ctm wrote: »

HMRC expect yo to not earn more than about 7.5k from the source of income that the code is operated against, so the deduction to collect the tax due is correctly calculated at 10%, as you won't go into the 22% band at that source of income.

You say you are self employed, so I would expect that underpayment is the result of the tax return you completed for 2005-06.

You say:


You probably did have this option. When you completed your tax return you should have ticked box 23.1 "Tick box 23.1 if you do not want any tax you owe for 2005-06 collected through your tax code", and then they wouldn't have put it in your code, and would have sent you a bill.

I will definately do that this year; it would be so much easier!
David

oldwiring

dcmbartonm a cery sensible way to go about things, and IMHO best for all annual contract matters and DDs as well.