What does the tax code D0 CUMUL mean?

Dragonrider

My OH has two PAYE employers, both on permanent contracts.

1. He does a 0.8 job for one and for the tax year 2012-2013 was on 702L CUMUL. This year they have put this job on 179L CUMUL.

2. He does a 0.35 job for the other one and for the tax year 2012-2013 was on D0 CUMUL. This year they have put this job on BR.

Please can someone explain what D0 CUMUL means, as I can't find it anywhere by googling it, and his overall income has gone down by about £400 this month (if you add the 2 jobs together).

We're already repaying some tax from tax year 2011-2012 (he's very complicated!!) - does the above drop in income mean that he's underpaid his tax for 2012-2013 as well, and we will have to repay more?!

Many thanks for your help,

Dragonrider

jimmo

Code D0 = 40%

Code BR = 20%

http://www.hmrc.gov.uk/manuals/pommanual/PAYE11015.htm#IDAPX20H

I’m afraid we’ll need details of pay in each job and details of how the main job codes have been calculated to comment on the rest of your questions.

Dragonrider

Thanks jimmo,

That would be brilliant and I'll look them out tomorrow.

Is there no difference between D0 and D0 CUMUL then? When I put them into the listentotaxman PAYE calculator they came out with completely different results for the same salary. V confused!

Thanks again,

Dragonrider

jimmo

No difference.
All codes are cumulative unless they are W1 (week 1), M1(month1) or noncum. I'm afraid I can't guess what went wrong with listentotaxman.

chrisbur

I think that the reason you could not find anything about it was proberbly because you searched for letter D and letter O it is actually letter D and number 0.

nomunnofun

chrisbur wrote: »

I think that the reason you could not find anything about it was proberbly because you searched for letter D and letter O it is actually letter D and number 0.

Exactly as with code 0T - many do not realise that it is zero T

Dazed_and_confused

Dragonrider wrote: »

My OH has two PAYE employers, both on permanent contracts.

1. He does a 0.8 job for one and for the tax year 2012-2013 was on 702L CUMUL. This year they have put this job on 179L CUMUL.

2. He does a 0.35 job for the other one and for the tax year 2012-2013 was on D0 CUMUL. This year they have put this job on BR.

Please can someone explain what D0 CUMUL means, as I can't find it anywhere by googling it, and his overall income has gone down by about £400 this month (if you add the 2 jobs together).

We're already repaying some tax from tax year 2011-2012 (he's very complicated!!) - does the above drop in income mean that he's underpaid his tax for 2012-2013 as well, and we will have to repay more?!

Many thanks for your help,

Dragonrider

Impossible to say if tax will be owed for 12:13 without knowing the P60 details for each job and what the 179L code was made up of (he should have a tax code notice with these details on)

Dragonrider

Dear all,

Thanks for your previous helpful comments.

I am currently in the process of constructing a spreadsheet with a tab for each year that my husband has had more than one PAYE employer (from 2010-2011 onwards).

Once I have input all his payslip details I am going to try and work out the tax owed myself to see if it tallies up with HMRC's figures, mostly for my own reassurance as I am so confused! Plus it should also give me an idea if we are likely to owe more for 2012-2013 and what the situation will be like in the future.

However, I still have a question about tax codes:

He has the following tax codes on his payslips:

XXXL - a few different 3 digit numbers followed by L - I understand this one as reflecting the amount of personal allowance he is given in that job. However, some of them are XXXL CUMUL and some of them are XXXL NONCUM - what is the difference here?

0T CUMUL - I don't understand how this can be CUMUL, as the HMRC website states that this is when you have run out of personal allowance. My calculations on his figures consistently get a 20% flat rate with this tax code, ie the same as BR - does this make sense?

D0 CUMUL and D0 NONCUM - why are these written differently like this (from the same employer) when they both give a flat 40% rate? Is there something else relevant that I'm missing, or did the terminology change in Mar/Apr 2012?

Many thanks for all your help,

Dragonrider

Dazed_and_confused

0T cumulative is like a BR tax code for most people but it becomes different for high earners. You are correct that it means no allowances are due but tax is deducted at the appropriate rate NOT just 20%.

For example month 1 of the tax year Fred earns £100 (annual rate of £1200) and has code 0T so £20 tax is deducted. BR code would also have deducted £20. The same month Hilda earns £5000 (annual rate of £60000) and had code 0T and has £1466.50 tax deducted (some at 20% and some at 40%). If BR code was used the tax deducted would be a straight 20% (£1000).

dtaylor84

Dragonrider wrote: »

XXXL - a few different 3 digit numbers followed by L - I understand this one as reflecting the amount of personal allowance he is given in that job. However, some of them are XXXL CUMUL and some of them are XXXL NONCUM - what is the difference here?

A cumulative code re-calculates your year-to-date pay/allowance/tax each month, and will charge/refund you the appropriate amount in tax to make the year-to-date total correct.

A non-cumulative code will calculate each month separately, and ignore any previous pay/tax in the year.

0T CUMUL - I don't understand how this can be CUMUL, as the HMRC website states that this is when you have run out of personal allowance. My calculations on his figures consistently get a 20% flat rate with this tax code, ie the same as BR - does this make sense?

With income within the 20% band, it will be a 20% flat rate, yes.

D0 CUMUL and D0 NONCUM - why are these written differently like this (from the same employer) when they both give a flat 40% rate? Is there something else relevant that I'm missing, or did the terminology change in Mar/Apr 2012?

From http://www.hmrc.gov.uk/manuals/pommanual/paye11015.htm:

From 6 April 2010, code D0 can be issued on a cumulative basis and on a week 1 / month 1 basis.
The instructions to the employer for operating Code D0 are
Tax Code D0 With week 1 / month 1

• Use taxable pay tables D. Do not make any refunds

Without week 1 / month 1

• Refunds can be made. You must work out the tax to deduct or refund, by using the totals of all your employee’s pay and tax since 6 April