Income tax question

jem16

M0ney wrote: »

My tax code is 937L

With a cumulative tax code, no change of employment during the tax year and one income stream, your tax is very unlikely to be wrong.

However do you know why your tax code is lower than the normal 944L tax code. Do you have taxable benefits that would affect it?

M0ney

I get £1060/year added on to my salary, with which I am allowed to get Bupa, life insurance, critical illness etc....

jem16

M0ney wrote: »

I get £1060/year added on to my salary, with which I am allowed to get Bupa, life insurance, critical illness etc....

If it's added onto your salary and then taxed, this wouldn't affect your tax code. Plus it's only £70pa that's being deducted from your allowance.

M0ney

It comes up as flex benefits acc on my payslip, what reasons are there for a change in the tax code?

jem16

M0ney wrote: »

what reasons are there for a change in the tax code?

Could be a number of reasons. The usual ones are taxable benefits or underpaid tax from a previous tax year.

What does your P2 Coding Notice say about your tax code?

M0ney

I have no idea what a P2 coding notice is...

jem16

M0ney wrote: »

I have no idea what a P2 coding notice is...

It's the official letter from HMRC which explains how your tax code is made up. If it differs from the normal tax code as yours does, you should have received one.

If you don't have one and have no idea why it's lower, I would suggest you phone HMRC and ask.

M0ney

OK thanks for bringing that to my attention, I wouldn't want them to have more money than they are entitled to take. I will give them a call in the new year.

M0ney

While we are on the topic of deductions from salary, I have been wanting to know when will they stop taking for my student loan repayments, will it be at the time when it is repaid in full or will they keep taking until the end of that tax year and refund the moneyI have over paid. At April this year there was just over £4,000 so I would expect it to be no more than £1,600 by April 2014 meaning that I will likely clear it some time in late 2014...

somethingcorporate

They wrote to me when I had less than 2 years left to pay asking me to move it to a DD payment rather than coming out of my salary, this minimises the chance of it not stopping in time and you having to chase/wait for a repayment of any over-payment you end up making.

It appears to be touch and go as to whether you'd pay it off in the next 2 years (170*24 = £4,080), I would suggest you give them a call and ask to move onto DD anyway. This will benefit you in any higher than normal income months - I get a bonus every year and end up losing a huge chunk of it. The DD payment is slightly higher than my normal payment (not noticeably higher) but come bonus month it will mean an extra £500 in my pay packet ).