Should I be getting taxed this much/do I have the correct tax code?

VanyaHargreeves

Hiya,

Sorry if this is the wrong area! I'm currently a full-time student working part-time (15 hours a week) to help pay rent.

I get an hourly rate of £9.10/hr and my contract states that I get an annual salary of £7098. I've noticed that I get taxed a fair amount every month (around £45-£50) and I believe that I'm just over the threshold to be taxed, but I was wondering if this amount of tax is correct. I've tried looking up tax calculators etc but I can't figure it out!

My tax code that they assigned me is 500T.

Thanks for any help/suggestions!

j-josie

500T isn't a standard tax code so it means the tax office think you have some other source of income to take into account. ( or taxable benefits or an underpayment from a previous year...)
it could be income from a previous job since April 2012 which wasn't taxed perhaps?
The only way to find out is to ring Hmrc and ask why the code is 500T and take it from there.
Hope you get it sorted soon.

VanyaHargreeves

j-josie wrote: »

500T isn't a standard tax code so it means the tax office think you have some other source of income to take into account. ( or taxable benefits or an underpayment from a previous year...)
it could be income from a previous job since April 2012 which wasn't taxed perhaps?
The only way to find out is to ring Hmrc and ask why the code is 500T and take it from there.
Hope you get it sorted soon.

I was a full-time (college) student earning less than £3,000 a year with my last job, so I didn't think that was it. My current employers lost my paperwork after my line manager left so I think that could be it? I will call them up ASAP and ask, thanks

agrinnall

That won't be the reason, no employer could allocate a tax code of 500T without getting notified to do so by HMRC. So ringing them up is the best thing to do, I would expect you to be changed to 810L and if it can be applied before April 5th you should get a hefty refund.

I'm not quite sure what you'll need to do if it doesn't get applied until the new tax year, you may just be able to write to HMRC to get the refund, or you can complete a tax return and get the refund paid into your bank account.

Dazed_and_confused

If your other job was 3000/year then 500T would be (roughly) the correct code for this new job but if you've left the original job there may be extra allowances available to the job you now have.

How this would pan out will depend on if you still have the original job and if not when you left it and how much you earned in this tax year. If you left the original job did you get a p45?

You may be able to get a new tax code issued in time to get any refund due via your wages but its getting a bit late in the year to sort out now but whatever happens you should be able to get any refund due direct from tax office once you have your p60.

VanyaHargreeves

Dazed_and_confused wrote: »

If your other job was 3000/year then 500T would be (roughly) the correct code for this new job but if you've left the original job there may be extra allowances available to the job you now have.

How this would pan out will depend on if you still have the original job and if not when you left it and how much you earned in this tax year. If you left the original job did you get a p45?

You may be able to get a new tax code issued in time to get any refund due via your wages but its getting a bit late in the year to sort out now but whatever happens you should be able to get any refund due direct from tax office once you have your p60.

I left the original job in September to go to uni, and started this job in October. When I left the first job I got a p45 and gave that to my manager at the current job, but due to my manager being a tad scatterbrained, all my paperwork went missing when she left!

I actually got a letter this morning saying that my tax code has been changed to 810L - does this mean that I will be getting a refund in April?

agrinnall

As long as your employer applies the new code before the next payroll then you should get your refund in that pay (which I would expect to be in March unless you get paid early in the month).