Tax code help needed!

lrb7691

Hi guys,

I'm totally useless at understanding Tax Codes and was wondering whether someone could explain this to me in simple English!

My tax code for 13/14 was 974L and is now changing for 14/15 to 1006L. Does this mean I'll be paying MORE or LESS in tax?

Thanks in advance!

jillie1974

Less tax.
you are going from earning £9740 before you pay tax to £10060 before you pay tax

nannytone_2

you will pay less tax.
the code represents the amount you can earn before oaying tax.
this current tax year it was £9,470, next tax year it will be £10,060[/B]

lrb7691

jillie1974 wrote: »

Less tax.
you are going from earning £9740 before you pay tax to £10060 before you pay tax

Thanks for replying so quickly! I get so confused with their wording, i can never get my head around this type of thing! Thank you

lrb7691

Thanks everyone for all your help! I had a minor panic when i received the letter from HMRC! You've all been very helpful! xx

lrb7691

blondebubbles wrote: »

Tax codes change pretty much every year without anyone noticing. The only reason you got yours through the post is that yours is slightly different than no norm. Do you have a uniform?

It's nothing to worry about anyways

Following advice on here, i wrote to HMRC last year about uniform tax rebates for my previous jobs (its worth doing, i didn't wear a uniform the whole time, only to events and they still gave me a rebate!) which is why my tax code changed last year. I'm in another job where i don't wear a uniform the whole time, only to events (I'm a Fundraiser so i wear branded tshirts to cheque presentations & outside events ect). So maybe they've take this into account again?! Who knows! I'm just happy to know im paying less tax! Yipee!!

cattermole

On a slightly different tack is this the first time ever we have had 4 digits in the tax code? Now it has gone to £10,000 the normal one will be 1000L

SandraScarlett

cattermole wrote: »

On a slightly different tack is this the first time ever we have had 4 digits in the tax code? Now it has gone to £10,000 the normal one will be 1000L

Yes, you're right. No doubt the computer at the Tax Office will crash! OP, an easy way to understand your code is to add a zero to the end of it, and that is the amount you can earn, each year, before you pay tax.


The final digit could be anything from 0 - 9, but to make things easy, just add the 0, and that's what you can earn annually, prior to paying tax.


If you prefer to work this out on a monthly basis, then deduct your code, in £s, from your monthly salary, and a fifth of the balance, will approximately be your tax. If you want a more exact figure you need to add the 0 to your code, divide by 12, and that's the Free Pay (pay on which you don't pay tax) you're allotted each month. HTH :beer:


xx

cattermole

LOL Sandra, you are probably right about the computers!

I find this site is quite handy for calculating what you get in your pocket.

You can select the year too

http://www.thesalarycalculator.co.uk/salary.php

kapekape

my tax code is 1006L Week 1 and I get paid on a monthly basis, I'm confused....

verybusymum176

My son worked for one company for a month and changed employers. His tax code is 1006l MR.
As this is only his second month of pay should he be paying tax at all? He hasn't earned £10060 yet, or is it worked out differently?