Was my tax code wrong?

no1wf

I started a new job in April last year and have kept almost all of my payslips. I noticed that last months tax code was 1060L which I understand is normal. But from the start of my job until my March payslip it's been 1000L/1 Is that normal or some sort of emergency code? What does the /1 mean?

I've noticed a £10 less in tax being paid and about £1 difference in NI, and that my employer pays less NI too.

dzug1

The /1 presumably means week 1 or non cumulative


That might or might not mean you have overpaid for last year, depending on when your first payday was

no1wf

blondebubbles wrote: »

1000L was the standard code for 2014/15. Don't know what the /1 is though, maybe ask them? It doesn't say W1 or M1?

As the personal allowance and NI rates went up in April, you would pay slightly less tax/NIC

It might be a bit of a pain to get to speak to head office but I'll ask my manager today. No there was no M or W

dzug1 wrote: »

The /1 presumably means week 1 or non cumulative


That might or might not mean you have overpaid for last year, depending on when your first payday was

First payday was 30th April 2014, we get paid on the last working day of every month

CLAPTON

no1wf wrote: »

I started a new job in April last year and have kept almost all of my payslips. I noticed that last months tax code was 1060L which I understand is normal. But from the start of my job until my March payslip it's been 1000L/1 Is that normal or some sort of emergency code? What does the /1 mean?

I've noticed a £10 less in tax being paid and about £1 difference in NI, and that my employer pays less NI too.

you may have noticed that the chancellor has increased the tax free allowance from 10,000 last year to 10,600 this tax year:
this 'appears ' on your payslip as tax codes 1000L and 1060L respectively

this means you have £600 this tax year, tax free more than last year

so you should pay 600 x 20% less tax i.e. £120 per annum which is 120/12 = £10 per month

as you worked all 12 month last tax year and presumably you don't pay 40% tax , then its likely that the tax was correct even if the code is non cumulative is incorrect.

don't spend the extra all at once.

chrisbur

Your first payday in the new job was 30 April 2014.
Did you receive any pay from your old job after 5 April 2014?
What was your total taxable pay and tax paid from month 12 payslip?
Does your job have any taxable benefits that would amend your tax code?

no1wf

CLAPTON wrote: »

you may have noticed that the chancellor has increased the tax free allowance from 10,000 last year to 10,600 this tax year:
this 'appears ' on your payslip as tax codes 1000L and 1060L respectively

this means you have £600 this tax year, tax free more than last year

so you should pay 600 x 20% less tax i.e. £120 per annum which is 120/12 = £10 per month

as you worked all 12 month last tax year and presumably you don't pay 40% tax , then its likely that the tax was correct even if the code is non cumulative is incorrect.

don't spend the extra all at once.

Thank you for your clear explanation but do you know what the /1 means?

no1wf

chrisbur wrote: »

Your first payday in the new job was 30 April 2014.
Did you receive any pay from your old job after 5 April 2014?
What was your total taxable pay and tax paid from month 12 payslip?
Does your job have any taxable benefits that would amend your tax code?

I might possibly have received some yes I'll have to look back and check, I'm guessing that makes a difference somehow?
I'll have to check my payslips and reply when I get home but no my new job doesn't have any taxable benefits

chrisbur

no1wf wrote: »

I might possibly have received some yes I'll have to look back and check, I'm guessing that makes a difference somehow?
I'll have to check my payslips and reply when I get home but no my new job doesn't have any taxable benefits

Obviously without the full details cannot be precise but a payment on 30/4 would fall in month 1 of the tax year 6/4/14 to 5/5/14 and if you were on 1000L month 1 for the full tax year this will have used up all your tax allowance for the year. A payment made by your old employer after 5/4/14 would also probably have had a tax allowance given to it but that would mean you had received thirteen allowances when only 12 were due.
If you can dig out the figures we can check better.

CLAPTON

no1wf wrote: »

Thank you for your clear explanation but do you know what the /1 means?

The /1. probably means non cumulative

no1wf

chrisbur wrote: »

Obviously without the full details cannot be precise but a payment on 30/4 would fall in month 1 of the tax year 6/4/14 to 5/5/14 and if you were on 1000L month 1 for the full tax year this will have used up all your tax allowance for the year. A payment made by your old employer after 5/4/14 would also probably have had a tax allowance given to it but that would mean you had received thirteen allowances when only 12 were due.
If you can dig out the figures we can check better.

I have my payslip here for 31/3/15 Month 12 tax code 1000L/1

total pay 13529.75
taxable pay 13529.75
tax 702.00

NI employee 668.85
NI employer 769.18
NI'able pay 13529.75

Checking my online bank history I did receive payment from my previous job on 11th april 14. They had also accidentally kept me on file as an employee and I received another payment in May which I returned because I'm nice like that

chrisbur

no1wf wrote: »

I have my payslip here for 31/3/15 Month 12 tax code 1000L/1

total pay 13529.75
taxable pay 13529.75
tax 702.00

NI employee 668.85
NI employer 769.18
NI'able pay 13529.75

Checking my online bank history I did receive payment from my previous job on 11th april 14. They had also accidentally kept me on file as an employee and I received another payment in May which I returned because I'm nice like that

The figures indicate that the code of 1000L was used for the full tax year on a non-cumulative basis. This means that any tax allowance given for the payment of 11/4/14 will probably have caused an underpayment of tax. Do you have a copy of the P45 issued by the old employer either part 1A or perhaps all parts as it appears not to have been given to your new employer. It is these details that will show for certain if there has been an underpayment.