Tax Code Change

daveyu

Can anyone explain why my tax code has just changed from 810L to OT and I have paid around £400 more tax this month, with no change in circumstances - no tax notification, pay rise etc?

System

Ask your employer.

If HMRC haven't sent the code then your employer has made the change.

0T is the code usually used by an employer for a new employee who has a second source of PAYE income such as a pension or other job. They use that until HMRC tells them otherwise.

It might have something to do with the introduction of RTI from the beginning of the new tax year. RTI is the new Real Time Information system which has come in where employers are required to send your payslip details electronically to HMRC at the end of each pay period. That means HMRC should now be able to see your payslips onscreen whereas before you would have had to send them to them if you were querying something.

AbbieCadabra

i'm not aware of any reason why RTI would change a tax code. your employer should only ever change it upon receipt of notification from HMRC. as you've not received any notification, perhaps they've just clicked on your info in error & made the change. get your employer to check, if they have received notification, then you'd need to query with HMRC.

System

AbbieCadabra wrote: »

i'm not aware of any reason why RTI would change a tax code. your employer should only ever change it upon receipt of notification from HMRC. as you've not received any notification, perhaps they've just clicked on your info in error & made the change. get your employer to check, if they have received notification, then you'd need to query with HMRC.

I agree, however in the last few days I have dealt with a number of people who have had the same thing happen and HMRC did not issue the OT code. The only thing we could think of was the employers made an error setting up RTI. Teething problems perhaps.

AbbieCadabra

Pam17 wrote: »

I agree, however in the last few days I have dealt with a number of people who have had the same thing happen and HMRC did not issue the OT code. The only thing we could think of was the employers made an error setting up RTI. Teething problems perhaps.

Definitely sounds like it.

One thing i have noticed with the new hmrc basic tools software is that the tab key doesn't seem to take you to the next input box straight away sometimes. If you're not looking as you enter info, it can easily go into the wrong box. Perhaps there's something similar in Sage or other software.

daveyu

I was told by my employer the tax office had made a mistake, I phoned the tax office and they said I had the wrong code but could not say how it had happened.
I have the right tax code for may, but tax office said I should be refunded in this pay period, but I have just received my pay slip and I now have the correct code but no refund, will I have to wait until the end of the tax year?

xylophone

but I have just received my pay slip and I now have the correct code but no refund,

Check with the company Payroll administrator.

molerat

Does the tax code on your payslip have W1 or M1 after it ?

McKneff

Depending on how much your refund is it may not show up.

You get a reduction in the tax you pay.

Have you checked that....

zygurat789

It would really help if you posted the figures for Apl & May.

daveyu

No W1 or M1

I have paid the same tax this month as I paid last year, so no refund as far as I can see.