Paye coding question

grecianite

Hi,

I am a higher rate tax payer and in early Feb had just had my code changed from 810L to 877L for this tax year 2012/13.

Just looked at my pay, expecting an extra £670, but instead, only saw £150 extra

HR seem happy that it's right, should I be concerned? Is it that I'll get the rest back in my next pay?


Thanks!

CLAPTON

presumably you earn more than 42,475 per annum after your pension payment are deducted?

your tax code has changed by 67 which means your tax free allowance increases by 670

so you tax for the whole year will change by 670 x 20% = 134 if a 20% tax payer
or by 670 x 40% = 268 if a 40% tax payer

grecianite

OK, so it's not like I am getting £670 in cash, it's only going to be 40% of £670? That makes sense now as I am only getting the tax paid back not the whole amount! Feel stupid now!

Thanks