Tax Code Change - Help

plasmarb

Hi

I was on 1060L but now 116M after getting my wife's personal tax allowance.

Why has it gone up? Am I getting taxed more?

Hasbeen

plasmarb wrote: »

Hi

I was on 1060L but now 116M after getting my wife's personal tax allowance.

Why has it gone up? Am I getting taxed more?

I would have thought it should have been 1160M you should get £1060 added to your tax allowance of £10600 means you pay less tax

Caz3121

plasmarb wrote: »

Hi

I was on 1060L but now 116M after getting my wife's personal tax allowance.

Why has it gone up? Am I getting taxed more?

the number reflects the amount you can earn before you pay any tax. The higher the number, the higher the tax free allowance. You have an additional £1,000 added to your allowance, so less tax due

jem16

plasmarb wrote: »

Hi

I was on 1060L but now 116M after getting my wife's personal tax allowance.

Should that be 1166L Mth1 or M1? 116M isn't a valid tax code.

Why has it gone up?

It would have been explained in the P2 Coding Notice you got. Basically you now have an extra tax free allowance on top of your Personal tax-free allowance. So PA of £10,600 plus £1060 allowance from your wife gives a total of £11,660 which turns into a tax code of 1166L.

Am I getting taxed more?

If it's 1166L M1/Mth1 then no you are not being tax more as you have more tax free allowance. You will be taxed £17.66pm less.

p00hsticks

jem16 wrote: »

Should that be 1166L Mth1 or M1? 116M isn't a valid tax code.

The M is nothing to do with Month 1 - both 'M' and 'N' are now valid tax code suffixes which HMRC have introduced for the new Marriage Allowance that came into effect in April this year.
https://www.gov.uk/tax-codes/letters-in-your-tax-code-what-they-mean

If a person on the standard allowance is then in receipt of the marrage allowance from their spouse their tax code should change from 1060L to 1166M (as their tax free allowance rises by 10% (£1060) from £10,600 to £11,660)

If a person nominates their spouse to make use of their marriage allowance ,their tax code should change from 1060L to 954N (as therir tax free allowance falls by 10% (£1060) from £10,600 to £9,540 )

jem16

p00hsticks wrote: »

The M is nothing to do with Month 1 - both 'M' and 'N' are now valid tax code suffixes which HMRC have introduced for the new Marriage Allowance that came into effect in April this year.
https://www.gov.uk/tax-codes/letters-in-your-tax-code-what-they-mean

Thanks. I wasn't aware of the M and N suffixes.

Intoodeep

It probably reads 1166M, just received one for one of our Employees.

plasmarb

Thanks, I double checked and its Tax Code: 1166M.

So M is marriage? I'm moving to a new company soon do I need to reapply? Will the tax office know to keep the allowance?

Thanks again.

TadleyBaggie

Of course if the new job has any form of taxable benefits, the tax code may need to be reduced again.