Tax Code Query

shaz77_2

Hi All,

I just got a letter out advising that my tax code has changed to 810L, I was aware that this was an emergency tax code - is this correct?

nannytone_2

no, its the tax code that most people have

juanmanuelmarquez

i was on 810l then went to 710l then 218l and now 512t, keeps to be going lower and lower so i seem to be paying more tax, so you will be following suit...

with 810l, your paying absolute peanuts, i think roughly £10 a week towards tax - mainly NI contributions!

810l is great tax code, i miss it! emergency taxcode is something like 0t, which you will paying the basic rate which is br. usually £30-£40 a week on tax!

i wonder if savings affect your tax code?

chrisbur

shaz77 wrote: »

Hi All,

I just got a letter out advising that my tax code has changed to 810L, I was aware that this was an emergency tax code - is this correct?

810L is the starting point for all peoples tax allowance, it is the basic tax allowance that everyone gets. This then may change up or down depending on any extra allowances or taxable benefits that you have. If you have no adjustments then it stays at 810L.
The purpose of the emergency tax code is to get as close to the correct tax deduction as is possible so the basic allowance code of 810L is also used for this, though it is usually applied slightly differently.

chrisbur

juanmanuelmarquez wrote: »

i was on 810l then went to 710l then 218l and now 512t, keeps to be going lower and lower so i seem to be paying more tax, so you will be following suit...

with 810l, your paying absolute peanuts, i think roughly £10 a week towards tax - mainly NI contributions!

810l is great tax code, i miss it! emergency taxcode is something like 0t, which you will paying the basic rate which is br. usually £30-£40 a week on tax!

i wonder if savings affect your tax code?

This post is extremely mis-leading and contains several errors.

512T is higher than 218L and you will pay less tax on 512T than 218L. The tax code you get will depend on your circumstances so because yours has changed does not follow that another persons will also change. The majority of tax payers are on 810L.

What you pay will depend on your earnings, you may have been paying peanuts but if you were it would be because your earnings were not a lot higher than the allowance given for 810L that is £8105 for the year.

NI has nothing at all to do with tax and is not affected by your tax code.

Emergency tax code is 810L the code 0T is the code used if an employee declines to fill in a P46 so that emergency tax cannot be used.
Once again the tax you pay is not decided by the code it is decided by your earnings so you cannot say what someone would pay on BR code.

Horseunderwater

Emergency tax codes used to be expressed as follows on a wage slip:
810L X or W1 or M1 at the end. Since everything is now computerised I have no idea if modern slips express them that way. My employer still does it that way, but so far everything I know about tax seems to have been changed beyond recognition.
The OT code means that no tax is being taken from that wage, so tax will be due if your total taxable income is above your normal personal allowance - which this year for majority is £8105 - next year will be £9440.
BR is normally taken at 20% - but if earnings are high enough then it may be taken at 40%. Can be a right royal mess to sort out. Hence completing form P46 at the start of a new job if there is a gap in employment should be as soon as you can. Or if you have the P45 from your last employer - you should hand over part 2&3 to them so that they can operate a cumulative code straight away. That is assuming you leave one job and start another the next day/week with no gap.

[Deleted User]

Hi,

make a cup of coffe, sit down, and have a read of this.

chrisbur

Horseunderwater wrote: »

Emergency tax codes used to be expressed as follows on a wage slip:
810L X or W1 or M1 at the end. Since everything is now computerised I have no idea if modern slips express them that way.

These days under certain circumstances the employer may use the emergency tax code as a cumulative code or a week1/month1 code.

Horseunderwater wrote: »

The OT code means that no tax is being taken from that wage, so tax will be due if your total taxable income is above your normal personal allowance - which this year for majority is £8105 - next year will be £9440.

The 0T code means that tax is being taken from all of the wage, no tax free allowance is given and if earnings are high enough higher rate tax will be taken. The code for no tax to be taken is NT.

Horseunderwater wrote: »

BR is normally taken at 20% - but if earnings are high enough then it may be taken at 40%.

Tax is only taken at 20% when BR is used. This has caused underpayment in the past when a P46 was not completed by a higher earner and now 0T is used in these circumstances so that higher rate tax will be taken if it applies.

[Deleted User]

FYI - I got a new coding notice last week saying that my tax code had reverted back to 810L until the end of this tax year (it was 426L). I knew that this was incorrect and called them, and they apologised and said that whilst removing an incorrect underpayment off of my tax code they also removed all of my benefits which are taxable, they corrected it there and then.

Only you know what taxable benefits you have and should be able to make an educated guess as to whether 810L is the right code for you. Hope that helps a bit.