What does 'X' mean, and why?

Elle7

My tax code appears to be the standard tax code followed by 'X'.

I started a new job around 5 months ago. I gave them a P46, and they said this was all fine. I queried the X on my first payslip, and was told it was a typo.

Now they don't seem to know what it is. Googling, it looks like it means my tax is worked out monthly, rather than yearly?

I was on a very low income until I started this job, though, so I'm not sure if this will be disadvantaging me, or what I should do about it?

Any advice would be much appreciated!

jem16

Elle7 wrote: »

My tax code appears to be the standard tax code followed by 'X'.

I started a new job around 5 months ago. I gave them a P46, and they said this was all fine. I queried the X on my first payslip, and was told it was a typo.

Do you mean you gave them a P45 from your previous employer or do you mean they asked you to complete a P46?

Now they don't seem to know what it is. Googling, it looks like it means my tax is worked out monthly, rather than yearly?

That's correct. It's a non-cumulative tax code.

I was on a very low income until I started this job, though, so I'm not sure if this will be disadvantaging me, or what I should do about it?

Any advice would be much appreciated!

It may mean you are overpaying tax depending on the amount you were paid before.

Best way to sort it would be to ring HMRC and see if they can put you on a cumulative tax code. That will depend on whether or not they have received the P45 details from your previous employer.

emilliemoo

The X will probably be after a code such as 944L? Basically when you are set up as an employee without supplying a P45 you should be asked to complete a P46.

It looks as though you probably ticket box B on the P46 (have had another job or received benefits such as job seekers within this financial year). The X means the temporary code you have been given is on a non-accumulative basis (charging tax based on what you work each payrun rather than an average of the whole year - this code is still better than emergency tax so it could be worse!)

If you have a P45 give it to your employer who will be able to change your code straight away or give the tax office a call if you need it changed urgently (they will ask for your employers PAYE ref, so get this before you call or they wont be able to help - call them after 6pm if not it will take ages to get through)

If you dont contact them they will ammend your tax code generally within a few weeks and send this to your employer and a copy to you - either way once your code is sorted you will get a refund showing on your next payslip xxx