Tax code

MrChips

Hi, I received a letter advising me of my tax code yesterday. It is basically my personal allowance for 2007/08 minus £92 for "medical insurance".

I do receive medical insurance at work, but the monthly value of it is about £30 I think, and so not sure where they have plucked this £92 figure from.

I'll check through my paperwork when I get home, but meanwhile I was curious and wonder if anyone knows the answers to these:

1) Is this new code an attempt to make an allowance for predicted P11D items in this tax year so that my income tax taken is (approximately) correct this year.
2) If so, if the code is wrong, what will happen? Will it just mean I have to correct my tax at the end of the year either via self assessment or through a claim for a refund
3) Or is this tax code based on P11D items from previous year(s) to claim tax on benefits in kind which I didn't pay then?

In previous years I have had a "normal" tax code based on the personal allowance and paid for P11D items via self assessment in January of the follwing year. This is how I imagined I would be paying for my 2006/07 P11D items this year too.

Thanks in advance.

malcindebt

Any bebefits which are shown on your tax code are taken from previous years P11d figures, but the code is designed to collect the correct amount of tax in the year it relates to. i.e. it is not collecting tax from earlier years, this would be shown as a seperate deduction if this was the case.

If you know the figure is incorrect then contact the tax office and they will chenge it for you.

To check what the current years figure should be, contact your HR department.