Tax code has changed :(

debrag

So my tax code for the rest of the year is 560L as I owe £499.40 tax from last year. Originally I got a letter to say they would change it at the beginning of the tax year but clearly they haven't and they've decided to bring it in now.
This mean anything over 5608 I pay 20% tax on. Therefore for the rest of the tax year (5 months) I'll be paying 20% on £6761 ish which is £1081 minus pension & student loan + unsocial hours. I'd normally get around £1388 but I'll be lucky to get £1200.

tonyh66

welcome to the real world.................

debrag

oh I know it sucks!

jobbingmusician

Who are 'they' that have suddenly changed your tax code? Your employer or HMRC?

If, I as suspect, it is HMRC, I wonder why you have posted this on the employment board. If it's your employer, and it's their mistake in collecting tax, can't you ask them to collect it over this year and next, as they have been so dilatory in following instructions from the tax man?

(And if you knew it should have changed, why weren't YOU putting money aside each month?)

chrisbur

debrag wrote: »

So my tax code for the rest of the year is 560L as I owe £499.40 tax from last year. Originally I got a letter to say they would change it at the beginning of the tax year but clearly they haven't and they've decided to bring it in now.
This mean anything over 5608 I pay 20% tax on. Therefore for the rest of the tax year (5 months) I'll be paying 20% on £6761 ish which is £1081 minus pension & student loan + unsocial hours. I'd normally get around £1388 but I'll be lucky to get £1200.

What you pay extra will depend on how this new tax code is applied. The change to 560L from 810L (assuming no other adjustments involved) would over the course of a full year have resulted in clearing this tax debt but if the new code is applied on a month 1 basis then only an extra aprox £42 a month will be taken so only about £210 will be cleared. If however it is applied cumulatively the full amount will be cleared but not split equally over the rest of the year, assuming applied in month 8 then about £336 extra will be taken in that month and £42 extra for the next four months.

debrag

Well the letter says - tax code for 6 April 2012 to 5 April 2013

antonic

See my post #2

https://forums.moneysavingexpert.com/discussion/comment/57346109#Comment_57346109

chrisbur

debrag wrote: »

Well the letter says - tax code for 6 April 2012 to 5 April 2013

I assume that this letter was recieved before the start of the tax year, if no advice recieved about the late aplication of the code your payroll dept will be able to tell you how it is being applied.

RE-reading your post the tax is owed from last year you say. It is very unlikely that the tax office would know about this untill well after the start of this year. When did you get the letter regarding the change in tax code?

If it was issued recently were there any notes after the tax code calculation?

debrag

The actual tax code letter was received today. Another letters were recieved earlier on in the year.

chrisbur

debrag wrote: »

The actual tax code letter was received today. Another letters were recieved earlier on in the year.

Were there any notes on this indicating how it would be applied, either cumulative or month 1 basis?

debrag

nope.

Note 1: general allowance details
Note 2: What I owe, how they are working it out
Note 3: 5 from income over certain amounts etc

Special note: Telling employer to use this code as a special basis. As they don't have details yet of the tax I've already paid this year. Any repayment to me will be paid on the next pay date.