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Help! Tax Code Query

Hi all

Hope you can help with a tax code query.

My husband has just received a new Tax Code for this coming April 2013 - April 2014, fine no worries, he did query one thing which they put right on the new code.
Also in the same envelope is another tax code for the current year, it says, your new tax code for April 2012 - April 2013 is 171L which replaces 143L, the difference is the issue he queried on this coming years one.
My question is if he has been paying tax through his PAYE since April gone on a 143L tax code and now notification has come through it should have been 171L (his company would have received this code as well to use from next payday - Feb) how does this adjust to refund back the difference?
Am i missing something because i assume that using 171L from next payday will only give him a little extra in that one pay packet, is that right?
I would really appreciate any information on this.

Many thanks

Comments

  • jem16
    jem16 Posts: 19,478 Forumite
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    MoneyMac wrote: »
    My question is if he has been paying tax through his PAYE since April gone on a 143L tax code and now notification has come through it should have been 171L (his company would have received this code as well to use from next payday - Feb) how does this adjust to refund back the difference?

    It will recalculate the amount of tax he should have paid if his tax code was always 171L from 6th April.
    Am i missing something because i assume that using 171L from next payday will only give him a little extra in that one pay packet, is that right?

    No it's not. If it's a cumulative tax code - ie no Mth1/Wk1 after the tax code it will recalculate and refund any overpayment.
  • MoneyMac
    MoneyMac Posts: 57 Forumite
    Many thanks for that.

    Would it say Mth1/Wk1 after the tax code then?

    All it says is 171L which replaces 143L.
  • jem16
    jem16 Posts: 19,478 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    MoneyMac wrote: »
    Many thanks for that.

    Would it say Mth1/Wk1 after the tax code then?

    It would on the payslip.
    All it says is 171L which replaces 143L.

    Look at the notes on the back. If it's a Mth1/Wk1 tax code it would say that the employer has been told to use the code on a special basis.

    However this usually only happens when your allowance goes down rather than up.
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