tax code

zygurat789

Intoodeep wrote: »

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

No, I can't reproduce it, must have hit the wrong key on the calculator.
However, it doesn't alter the fact that what you said was a bit of course; with personal allowances having risen over the years and more and more people are on the higher tax rate the amounts involved are potentially much bigger than they would have been last year let alone years ago. You may be confusing it with the fact that because the PA has risen so much there are now fewer people actually paying tax so the actual amounts are much smaller.
Week 1 basis has been a great way for HMRC to take lots of money it was never entitled to. Each of my children was issued with a Wk 1 tax code in September when they started and this was only corrected the following April resulting in lots of overpaid tax. If it hadn't been for me, knowing how the system was worked, this money would have been lost to them forever.
Now HMRC has a computer system which tells them about this and they have cut the repayment time limit to ensure they don't lose too much because of it.
The situation is still around today as evidenced by this post. What is required is a bit of education either in the last term in education or on starting work a brand new employee should be taught the basics of how and why their money is taken of them.