Am I getting taxed incorrectly?

Istanbul05_2

Guest101 wrote: »

£3730(ish) benefits deducted from 10,600 = 6870 (L) personal allowance.


Which is certainly one way to work it out.

Yep.. So as I said above, surely I shouldn't have that tax code and still get taxed on the allowances. That just means that I am getting taxed on them twice, in a sense?

My tax code should still be 1060L?

Istanbul05_2

Darksparkle wrote: »

But the benefits are £3876.

OP did you not receive a coding notice from HMRC?

I received one at the beginning of the tax year but at that point I had a company car and therefore my tax code took that into account. I haven't received a new notice since the change.

Guest101

Istanbul05 wrote: »

Here are the figures from my latest payslip:

Salary - £1750
Car Allowance - £300
Phone Allowance - £23

Tax - £300
NI - £168
Student Loan - £56

Tax home pay - £1549

My thinking is that I shouldn't be getting taxed on my allowances when my tax code has already been reduced to account of them.



I always presumed is was reduced because of the allowances, but I'm not sure.

Salary - £1750 *12
Car Allowance - £300 *12
Phone Allowance - £23 *12
= £24,876
-6870 (your allowance)
= 18,006 = your taxable pay
/5 (basic rate) = £3601.20 /12 (monthly) = £300


So you are correct to some degree that you are being taxed twice

Darksparkle

Istanbul05 wrote: »

I received one at the beginning of the tax year but at that point I had a company car and therefore my tax code took that into account. I haven't received a new notice since the change.

I've added a bit more.

However if you did have a car benefit at some point in the year that does need to be taken into account also.

Istanbul05_2

Darksparkle wrote: »

I've added a bit more.

However if you did have a car benefit at some point in the year that does need to be taken into account also.

I had a company car up until October. Why does that need to be taken into account and how would it be taken into account? It's all very confusing to me.

The phone allowance covers my own personal phone, not a company phone. It's no different to the car allowance covering my personal car.

Darksparkle

Istanbul05 wrote: »

I had a company car up until October. Why does that need to be taken into account and how would it be taken into account? It's all very confusing to me.

Because you still had the benefit of it until October which is in this tax year, so would still be due to pay tax on the benefit for April to October (plus anything outstanding from previous years).

So say a car benefit for the full tax year was £7460. You only had it for 6 months of the tax year so that would be £3730 to be deducted from your personal allowance.

You can use this to see what the exact figures should be - http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

Easiest thing to do would be to call HMRC as only they can explain the tax code and see if it needs adjusting.

Istanbul05_2

Darksparkle wrote: »

Because you still had the benefit of it until October which is in this tax year, so would still be due to pay tax on the benefit for April to October (plus anything outstanding from previous years).

So say a car benefit for the full tax year was £7460. You only had it for 6 months of the tax year so that would be £3730 to be deducted from your personal allowance.

You can use this to see what the exact figures should be - http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

Easiest thing to do would be to call HMRC as only they can explain the tax code and see if it needs adjusting.

But surely the car benefit deduction was taking place from April to October? My tax code at the time was 400L or something like that.

I will ring the HMRC this afternoon. I just wanted to make sure I wasn't missing something and being silly before doing so.

Guest101

Istanbul05 wrote: »

But surely the car benefit deduction was taking place from April to October? My tax code at the time was 400L or something like that.

I will ring the HMRC this afternoon. I just wanted to make sure I wasn't missing something and being silly before doing so.

Ring?! RING?! haha good luck - no seriously, email them, it'll be far less stressful.

Darksparkle

Istanbul05 wrote: »

But surely the car benefit deduction was taking place from April to October? My tax code at the time was 400L or something like that.

I will ring the HMRC this afternoon. I just wanted to make sure I wasn't missing something and being silly before doing so.

Your tax is dealt with over the full year.

agrinnall

Istanbul05 wrote: »

But surely the car benefit deduction was taking place from April to October? My tax code at the time was 400L or something like that.

I will ring the HMRC this afternoon. I just wanted to make sure I wasn't missing something and being silly before doing so.

If your tax code in the first part of the year was c. 400L and then became 687L then you should have received another coding notice to explain the basis for the change. If you didn't it's probably simply gone missing in the post, so the first part of your call to HMRC should be to ask for it to be reissued, only then will you be able to determine whether the current tax code is correct or not.

As Guest101 has mentioned, calling in the afternoon is liable to be an exercise in frustration, I don't know whether email works but I called a couple of weeks ago at 7:45 (lines officially open at 8 but regular readers of this board will know that they actually open a little earlier) and it was answered on the first ring following the recorded guff that you have to listen to.