Tax code 982L ? ???

[Deleted User]

Doing wifes tax return and its coming out that she underpaid tax by £70.

Looks like her tax code throughout the year was 982L which I dont think is normal one. Any ideas?

For some reason, have HMRC issued this because they thought she overpaid last year?

Just checking previous years online and it all says zero?

agrinnall

[quote=[Deleted User];discussion/5145124] Any ideas?
[/QUOTE]

Yes, the obvious one, ring up HMRC and ask them. Remember, this is a busy time of year for them so it may take a while to get through, calling early (from 7:45) is usually the best bet.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment

Delphina

If your wife underpaid tax in a previous year and that had affected her tax code in 2014, the code should have gone down not up! A nomal tax code for most people under 65 years of age was 944L. As your wife's was 982L and you do not know how it was made up, putting and gross pay and tax from her employment, as a result, creates a £70 underpayment of tax which is 20% of the difference between 982L and 944L at your wife's highest rate of tax (which is I think 20%).

Look at the coding notice for 2014, there should be an allowance added to her code to give her a slightly higher tax-free allowance. This could be a flat-rate expense, professional subscription, etc. If an allowance is included in code, you need to declare the allowance on her return to get rid of the £70 tax bill.

If there was no allowance in code, it possibly means that employer incorrectly used 982L code giving your wife a little too much tax-free allowance and of course the £70 tax bill stands as a result.

zygurat789

Delphina wrote: »

If your wife overpaid tax in a previous year and that had affected her tax code in 2014, the code should have gone down not up! A nomal tax code for most people under 65 years of age was 944L. As your wife's was 982L and you do not know how it was made up, putting and gross pay and tax from her employment, as a result, creates a £70 underpayment of tax which is 20% of the difference between 982L and 944L at your wife's highest rate of tax (which is I think 20%).

Look at the coding notice for 2014, there should be an allowance added to her code to give her a slightly higher tax-free allowance. This could be a flat-rate expense, professional subscription, etc. If an allowance is included in code, you need to declare the allowance on her return to get rid of the £70 tax bill.

If there was no allowance in code, it possibly means that employer incorrectly used 982L code giving your wife a little too much tax-free allowance and of course the £70 tax bill stands as a result.

Surely if too much tax had been paid in a previous year then less tax is due in 2014. To arrive at a lower tax deduction the code number needs to be greater than the baasic personal allowance.
Isn't £70 for cleaning uniform or clothes or something.
OP what does youe wife do jobwise?

Delphina

Sorry, you are right, Zygurat789. I meant to say underpaid not overpaid. Thanks for pointing that out.

[Deleted User]

agrinnall wrote: »

Yes, the obvious one, ring up HMRC and ask them. Remember, this is a busy time of year for them so it may take a while to get through, calling early (from 7:45) is usually the best bet.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment

Exactly. Not easy.

[Deleted User]

blondebubbles wrote: »

Did she not receive a coding notice explaining the tax code used?

No. Not that I saw.

[Deleted User]

Delphina wrote: »

If your wife underpaid tax in a previous year and that had affected her tax code in 2014, the code should have gone down not up! A nomal tax code for most people under 65 years of age was 944L. As your wife's was 982L and you do not know how it was made up, putting and gross pay and tax from her employment, as a result, creates a £70 underpayment of tax which is 20% of the difference between 982L and 944L at your wife's highest rate of tax (which is I think 20%).

Look at the coding notice for 2014, there should be an allowance added to her code to give her a slightly higher tax-free allowance. This could be a flat-rate expense, professional subscription, etc. If an allowance is included in code, you need to declare the allowance on her return to get rid of the £70 tax bill.

If there was no allowance in code, it possibly means that employer incorrectly used 982L code giving your wife a little too much tax-free allowance and of course the £70 tax bill stands as a result.

Yes. Sorry she underpaid on PAYE which makes it £70 when SA is done.

But I think you might be right. Shes a nurse so gets certain allowances which I think might be the answer!

zygurat789

[quote=[Deleted User];67381741]Yes. Sorry she underpaid on PAYE which makes it £70 when SA is done.

But I think you might be right. Shes a nurse so gets certain allowances which I think might be the answer![/QUOTE]

That's why I asked.
Shoes and/or washing uniform

purdyoaten

We are looking for £350 of allowances here which, at 20%, is £70.

She is a nurse and, as zygurat says, shoes and uniform washing are likely factors. The most obvious one, however, is union, NMC, or RCN subscriptions.

mgdavid

[quote=[Deleted User];67381714]Exactly. Not easy.[/QUOTE]

Have you tried? (or are you a doom-laden pessimist! )
I called two weeks before Christmas and got straight through, was dealt with quickly and efficiently - received updated Notice of Coding in a couple of days.

Your wife almost certainly *has* had a Notice of Coding for 982 - impress on her the importance of keeping track of these.