HMRC Personal Tax Codes

Miss_Havisham

Apols if this has been covered in another thread, a quick search has revealed nothing but that's probably my fault !:rotfl:

Anyway, could someone help with my 2 questions please:

1. When calculating The basic Personal Tax Code do I just knock off the last digit of the Personal Allowance or is there some sort of rounding up ? Eg allowance = £6,500 Tax Code = 650 (L) and allowance = £7,917, Tax Code = 791 (L) or would it be 792 (L) ?? (made up amounts)

2. Is there now or has there been in recent years, a tax rate below the 20% (22%) for the first part of the income above the personal allowance (in the back of my mind I have a vague thought of 10%). (hope this makes sense !).

Thanks guys :beer:

Miss H

chrisbur

1 When your employer calculates your tax they use Table A Pay Adjustment Tables which rounds your allowance up to at least £9 as the last digit and often a few pence as well. For example 910L becomes £9109.36. Also any pence in your figure after this is deducted is ignored so if you ended with £9999.99 to be taxed on you would pay the same as £9999.00.
2 Yes there was a 10% band which ended for most some years back but certainly up to last year it was still there for savings interest if you had no other or very low other income. Not sure about this year.

p00hsticks

chrisbur wrote: »

Not sure about this year.

the 10% band for savings interest is still there, but is basically only applicable if you don't have any other income

http://www.hmrc.gov.uk/taxon/bank.htm

xylophone

the 10% band for savings interest is still there, but is basically only applicable if you don't have any other income

Not so.
See http://www.hmrc.gov.uk/taxon/worked-examples.htm

zygurat789

chrisbur wrote: »

1 When your employer calculates your tax they use Table A Pay Adjustment Tables which rounds your allowance up to at least £9 as the last digit and often a few pence as well. For example 910L becomes £9109.36. Also any pence in your figure after this is deducted is ignored so if you ended with £9999.99 to be taxed on you would pay the same as £9999.00.
2 Yes there was a 10% band which ended for most some years back but certainly up to last year it was still there for savings interest if you had no other or very low other income. Not sure about this year.

2007/08 was the last year before the GB masterstroke of charging people on low incomes 20% instead of 10%.