tax code

vacationgirl

Si2008
When a tax code is on a week 1/month 1 basis it means that your tax is calculated on each separate payment.
If your code was just 950L it would be on a cumulative basis and the tax would be calculated on your earnings from the start of the tax year ie April 2013. You do not receive any refunds when your code is on a week/month basis. Any queries should be raised with the HMRC, your employer should have the telephone number and should also give you the HMRC reference number for your employer

purdyoaten

blondebubbles wrote: »

Excuse me for asking a question!!! I just wondered as I have never seen it before.

Can't believe how rude some people can be on this forum.

I apologise if i came across as 'rude'. But you cannot state that it is 'not a letter normally added to your tax code' when it is just about as common as it gets.

There is a table letter 'X' for NIC but this would never appear on a tax code.

purdyoaten

blondebubbles wrote: »

I've just been on a years training on PAYE. At no point in the training did it mention an X at the end of a tax code. I also couldn't see mention of it on the HMRC website so as far as I am concerned it doesn't normally happen. I also don't agree that it's as common as it gets as the majority of people aren't on wk1/mth1 codes.

Re: the NI category, I only mentioned it as I have seen an employer put this right next to a tax code on a payslip before and it caused a lot of confusion.

Fair enough - we all have to learn. Good luck in your studies. As a matter of interest, sage is probably still the biggest payroll provider out there. They use an 'X' for emergency codes.

purdyoaten

blondebubbles wrote: »

It's usually sage I see and I've never seen X. It's always been wk1/mth1. Ah well at least I'll know if I ever do see it.

When the employee is set up it says something like 'If the code is to be used on an emergency basis, put an 'x' in the box' and so it remains (well, at least until the next tax year)

pjclar02

purdyoaten wrote: »

As a matter of interest, sage is probably still the biggest payroll provider out there. They use an 'X' for emergency codes.

Sage Payroll uses "M1" as an indicator for monthly paid staff.

I think you may be referring to the preparation of a P45 which uses an X t designate week 1/month 1

zygurat789

si2008 wrote: »

i have a tax code of 950L/X i dont understand why i have to letters after my numbers can anybody tell me why

See also your post 15 from which I deduce you have no taxable income in the period 6 April 2013 to Oct 2013.

You are almost certainly overpaying tax. If you can ring HMRC they may be able to issue you with a cumulative code before March 31, if not you will have to contact them with your P60 figures and claim a refund.

[Deleted User]

zygurat789 wrote: »

See also your post 15 from which I deduce you have no taxable income in the period 6 April 2013 to Oct 2013.

You are almost certainly overpaying tax. If you can ring HMRC they may be able to issue you with a cumulative code before March 31, if not you will have to contact them with your P60 figures and claim a refund.

I would further this to add that the most possible explanation for the W1/M1 is due to a gap in your record (When you were chilling!) so if you call HMRC and clarify this as the previous poster said you will most probably be entitled to a tax rebate

Intoodeep

blondebubbles wrote: »

I've just been on a years training on PAYE. At no point in the training did it mention an X at the end of a tax code. I also couldn't see mention of it on the HMRC website so as far as I am concerned it doesn't normally happen. I also don't agree that it's as common as it gets as the majority of people aren't on wk1/mth1 codes.

Re: the NI category, I only mentioned it as I have seen an employer put this right next to a tax code on a payslip before and it caused a lot of confusion.

On P45's and the like there is a box for Mth1/ Wk1 which is invariably filled with an X , when printed off for an Employee leaving, been doing Payroll for 30+ years, its no big deal these days having a Mth1/ Wk1 code, the differences do not appear to be as much as they sometimes could be years ago.

zygurat789

Intoodeep wrote: »

On P45's and the like there is a box for Mth1/ Wk1 which is invariably filled with an X , when printed off for an Employee leaving, been doing Payroll for 30+ years, its no big deal these days having a Mth1/ Wk1 code, the differences do not appear to be as much as they sometimes could be years ago.

In this case the OP looks to be losing c£75pw because of his wk 1 code; years ago that would have been a good living wage.

Intoodeep

zygurat789 wrote: »

In this case the OP looks to be losing c£75pw because of his wk 1 code; years ago that would have been a good living wage.

I'd been intrigued to see your calculations and how you arrived at that figure of £75 per week ??